Other Alcoholic Beverages

Excise on Other Alcoholic Beverages is applied to Ready-to-Drink pre-mixed spirits (such as rum and cola, or vodka breezers). This excise and equivalent customs duty on imported ready-to-drink beverages is budgeted to raise $1 billion in 2018-19, and $4.8 billion over the forward estimates. It is our fourteenth largest tax.

Other Alcoholic Beverages excise represents 0.21% of all Commonwealth revenue in 2018-19, and 0.05% of GDP.

Other Alcoholic Beverages excise is currently (August 2018) levied at the same rate as spirits generally - $84.51 per litre of pure alcohol. 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.

You can choose:

• the rate of excise for other alcoholic beverages
• to apply indexation based on the consumer price index or the wage price index, or remove indexation of the excise altogether
• to apply 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 other alcoholic beverages 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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