Beer

Excise on beer and equivalent customs duty on imported beer, is budgeted to raise $2.4 billion in 2018-19, and $10.2 billion over the forward estimates. It is our ninth largest tax.

Beer excise represents 0.5% of all Commonwealth revenue in 2018-19, and 0.13% of GDP.

Beer excise is currently (August 2018) levied at different rates depending upon the alcoholic strength, and size of packaging. The Table below shows the rates. An equivalent customs duty is levied on imports. The excise is indexed twice yearly in line with movements in the consumer price index. GST of 10% is applied on top of the excise.

Excise Rates for Beer – 1 August 2018

	Containers < 8 Litres $ per L Alcohol	Containers > 8 Litres $ per L Alcohol
Low Strength - <3% Alc/Vol	42.84	8.57
Mid Strength – 3-3.5% Alc/Vol	49.90	26.83
Full Strength - >3.5% Alc/Vol	49.90	35.15

You can choose:

• the rate of excise for each class of beer
• to apply indexation based on the consumer price index or the wage price index, or remove indexation of the excise
• to impose an additional amount of excise each year, expressed as a percentage increase which is added to whatever means of base indexation you choose.

The model does not take account of the impact of changes to beer excise on GST (a reduction in the excise rate would lower GST collections, and an increase would also increase GST collections), or of any other second round effects.

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