Australia’s spirits excise has increased to $107.99 per litre of alcohol, in the first automatic tax rise of 2026, and renewing calls from peak bodies for reform of the country’s alcohol taxation system.
The increase took effect on February 2, under Australia’s inflation-indexed excise regime, which applies twice-yearly increases to spirits. While the federal government has introduced a two-year excise freeze on draught beer, spirits remain excluded from the measure.
Spirits & Cocktails Australia executive director, Steven Fanner, said the disparity highlights structural issues within Australia’s decades-old alcohol tax framework.
“Spirits are taxed more than beer or wine, and the tax increases every six months,” Fanner said.
“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.”
Fanner said spirits play an increasingly important commercial role in the hospitality sector, particularly for pubs, clubs and small bars, and that the rising excise burden affects both producers and venues.
With parliament resuming this week, industry groups are advocating for the draught beer excise freeze to be extended to tap spirits, arguing it would provide broader cost-of-living relief while supporting hospitality businesses.
“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.
Night Time Industries Association chief executive, Mick Gibb, said high spirits taxation continues to weigh on venue economics at a time when governments are investing in revitalising night-time precincts.
“For venue owners, particularly those with small bars, these twice-yearly tax hikes become very difficult to wear and even harder to budget for,” Gibb said.
He added that rising drink prices risk undermining recent policy initiatives aimed at supporting vibrant, economically sustainable night-time economies across Australia.
