Distillers and brewers are bracing themselves for another tax excise hike on February 1, with consumers also set to pay a high price for their favourite pint or mixed drink.

It’s predicted the price of a pint will hit $15 in pubs, while the price of spirits and cocktails will also soar.

Australia’s alcohol excise is currently the third highest in the world, behind only Iceland and Norway. The spirits industry alone will pay about $5 billion in excise this year in Australia, with the tax continuing to grow twice a year, every year.

Australian spirits manufacturers have renewed their calls for a freeze on spirits tax increases, as bi-annual indexation continues to fuel inflation and cost of living pressures.

Bundaberg Rum launched a campaign in mid-January across its sunshine state heartland, highlighting Australia’s punitive spirits tax regime, which sees 63% of the cost of a 1L bottle of Bundaberg Rum UP go straight to the Australian Government.

The brand unveiled a series of billboards, radio and social advertisements across the state in a bid to urge the Federal Government to freeze the twice-yearly increases to the spirits tax rate.

Chair of the Bundaberg Distilling Co. Amanda Lampe said “you can buy a bottle of Bundaberg rum cheaper in Los Angeles than you can in Bundaberg.”

“We’ve been talking to Bundaberg Rum customers across the length and breadth of this great state and we know many of them are doing it tough,” she added.

“They know alcohol should be taxed, but a 63 per cent tax on a 1L bottle of Bundy UP just seems outrageous.”

Spirits & Cocktails Australia chief executive Greg Holland said spirit manufacturers cannot stomach further tax increases.

“The Federal Government’s own data is starting to bear out the folly of this outdated excise regime,” he said.

“Despite a record high tax, the December budget update revealed a projected $170 million shortfall in revenue from spirits excise in 2023-24.

“This is clear evidence that the tax is making spirits unaffordable for consumers. Continued increases would be nonsensical; consumers, manufacturers and the Government all lose out to this inefficient tax.”

Furthermore, the Australian Bureau of Statistics’ September Quarter results found spirits, powered by bi-annual excise increases, was the largest contributor to an annual CPI increase of 4.9% for the alcohol category.

Holland said this demonstrates the extent to which CPI indexation is actually fuelling the inflation problem that the Federal Government is purportedly trying so hard to address.

“This highlights that the rising costs of alcohol, fuelled by excise increases, is being felt by hardworking Australians.”

Australian Distillers Association chief executive Paul McLeay said the 600 distilleries spread across the country need urgent respite from this punitive tax.

“The average Australian would be appalled if they knew just how much of the hard-earned money they spend on spirits goes directly to the Government,” he said.

“Spirits tax above $100 a litre should be a barbecue stopper this summer.

“We are calling on the Government to freeze this un-Australian and unbearable tax so we can work together to develop policy settings to support the sustainable growth of this promising industry.”

Brewers Association of Australia chief executive John Preston said the latest increase was also bad news for brewers and beer drinkers.

“In many venues, people are paying over $15 for a pint. This is a huge amount considering how tight the family budget is,” Preston told the Herald Sun.

Australian Hotels Association chief executive Stephen Ferguson said: “When increases to the cost of living are impacting so many Australians, the government should consider freezing excise for the next couple of years.”

Australia’s favourite craft beer