Cost of living spirits tax set to push up prices in australia 20260202 p5nysn.html – Breaking News & Latest Updates 2026
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This was published 7 months ago

Spirits tax set to rise to almost $108 a litre in Australia

Emily Bennett

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Cocktails and pre-mixed drinks are set to get more expensive with Australia's spirits tax rising today.

The cost of the tax is now $107.99 per litre in line with a twice-a-year inflation increase.

While the government has provided temporary relief to draught beer drinkers with a two-year excise freeze, those who prefer spirits are expected to pay more under the tax.

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Cocktails and pre-mixed drinks are set to get more expensive with Australia's spirits tax rising today.

Cocktails and pre-mixed drinks are set to get more expensive with Australia's spirits tax rising today. Supplied

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Spirits and Cocktails Australia executive director Steven Fanner said spirits have been taxed more than beer and wine.

"The tax increases every six months," Fanner said.

"Spirits are a growing part of the product mix for pubs, clubs and small bars and appeal to a wide variety of consumers, particularly women and younger adults.

"This latest rise will mean around $32 of the price of a standard 700mL bottle of gin or whisky is tax going straight to the government."

Parliament is set to resume debate this week on the government's draught beer freeze.

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Fanner urged MPs to extend a freeze to tap spirits-based beverages served over the bar in pubs and clubs.

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Barista in the pub pouring beer drink into glass for the customer.

Beer drinkers have been given a temporary reprieve from the tax hikes. iStock

"Applying the freeze to tap spirits as well as tap beer would ensure many more people having a drink with friends on a Friday night benefit from this sensible cost-of-living measure," Fanner said.

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Night Time Industries Association chief executive Mick Gibb said state governments had made meaningful progress in revitalising their night-time economies, but the tax rate on spirits continued to challenge both consumers and venue owners.

"We've seen some real progress in recent months to foster vibrant 24-hour cities, but for many consumers the rising price of a mixed-drink or a cocktail makes going out a luxury," Gibb said.

"For venue owners, particularly those with small bars, these twice-yearly tax hikes become very difficult to wear and even harder to budget for."

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