Wednesday,
15th May 2002
NEW LOW-ALCOHOL EXCISE RATES APPLAUDED The Distilled Spirits
Industry Council of Australia (DSICA) today applauded the new national
excise scheme for low-alcohol beer included in last night’s Federal
Budget.
‘This new scheme is a significant breakthrough,’
said Mr John Pollaers, Chairman of DSICA and Managing Director of GuinnessUDV.
‘It delivers a nationally uniform tax treatment for
lower-alcohol beer, and builds into the alcohol tax structure clear
and consistent incentives to both produce and consume lower-alcohol
beer.’
The March Ministerial Council for Commonwealth-State Financial
Relations agreed to replace the State low-alcohol subsidies for beer.
These subsidies were set at various levels and resulted in different
prices for the same product in different States, and also had the perverse
effect in some States of lower-alcohol beer actually paying more excise
than higher strength beer. The subsidies are now to be replaced with
a single national concession scheme for lower-alcohol beer.
‘The new national excise scheme for low-alcohol beer
goes a long way towards delivering on the objectives of the Government’s
National Alcohol Strategy to
both deliver “systems of pricing and taxation that have a positive
public health impact” and to provide “incentives to choose
lower strength alcohol products”,’ said Mr Pollaers.
‘However, there are no similar incentives to produce
and consume lower-alcohol pre-mixed spirits.’
When the new low-alcohol beer excise rates are introduced
on 1 July this year, consumers will pay:
•
twice
as much excise on a can of light pre-mixed spirits (2.7%
abv) than on an equivalent can of light beer;
•
nearly
20% more excise on a can of light pre-mixed spirits (2.7%
abv) than on a stronger mid-strength (3.5% abv) can of beer;
•
50%
more excise on a can of mid-strength pre-mixed spirits
(3.5% abv) than on an equivalent can of mid-strength beer;
•
almost
the same amount of excise on a can of mid-strength pre-mixed
spirits (3.5% abv) as on a much stronger can of full-strength
(4.9% abv) beer.
A standard drink of light beer will pay 21 cents excise, mid-strength
beer 28 cents and full-strength beer 32 cents. But all pre-mixed spirits,
regardless of strength, pay 42 cents per standard drink.
‘DSICA welcomes the clear and consistent incentives
to both produce and consume lower-alcohol beer built into the alcohol
tax structure through the low-alcohol beer excise scheme, and seeks
exactly the same taxation incentives to produce lower-alcohol pre-mixed
spirits,’ said Mr Pollaers.
