Why Aussies are being ripped off buying spirits locally

An Adelaide man has revealed one item that you’re paying way too much for, saying it’s time we fight back against an “unfair” system.

OPINION

Have you ever wandered through a liquor store overseas and been astounded by how affordable spirits are?

A bottle of premium gin, like Tanqueray, can be picked up for around $20 in the US – but back home in Australia, that same bottle costs nearly double that.

The culprit? It’s not magic – it’s tax.

Australia has one of the highest spirits tax rates in the world, ranking third globally. And the worst part? The burden isn’t shouldered by multinational corporations – it’s crushing independent local distillers like us at Prohibition Liquor Co.

To put things into perspective, a bottle of Bundaberg Rum (37 per cent ABV – or alcohol by volume) retails for just under $48 in Australia.

But did you know that more than half of that price – $27 – is tax?

Meanwhile, in the US, that $20 bottle of Tanqueray gin includes just $4 in tax.

Australian spirits are being taxed at an exorbitant rate, making it nearly impossible for local distillers to compete.

An Adelaide man has revealed one item that you’re paying way too much for, saying it’s time we fight back against an “unfair” system.

We’re feeling the weight of an outdated and unfair tax system. Our excise tax per litre is a staggering $104.31 – over seven times higher than in the US.

While the wine and beer industries receive significant tax concessions, the spirits sector is left to struggle under the burden of a system that is long overdue for reform.

In fact, spirits are taxed at double the rate of beer and five times that of wine. It’s an injustice that stifles innovation, growth, and the ability of Australian distillers to thrive.

A bottle of Bundaberg Rum retails for just under $48 in Australia. But did you know that more than half of that price – $27 – is tax? Picture: Supplied

And yet, despite these challenges, Australian craft spirits are making waves globally, gracing the finest bars in New York, London, and Singapore.

Prohibition has garnered over 200 international awards, proving that Australian spirits can compete on the world stage.

But competing internationally becomes a herculean task when we’re shackled by a tax regime that limits our ability to reinvest, expand and innovate. It’s like trying to run a marathon with concrete shoes.

Adam (centre) with Matt Clarke, Crows AFLW coach and Ali Clarke, former radio presenter – both are investors and strategic advisers in Prohibition. Picture: Supplied

Adam says the system is long overdue for reform. Picture: Supplied

This fight isn’t just about lowering taxes – it’s about securing Australia’s rightful place in the global spirits industry. Imagine the possibilities if distillers like us could reinvest our excessive excise payments into job creation, tourism and exports.

The Australian spirits industry has the potential to be a billion-dollar powerhouse, driving employment, boosting tourism and ultimately increasing tax revenue for the government. We’re not asking for handouts – we’re asking for the opportunity to grow and contribute.

The Australian spirits industry has the potential to be a billion-dollar powerhouse. Picture: Supplied

We refuse to sit back and wait for change. Instead, we’re taking action with a bold move: we’re inviting our loyal customers to become part-owners of our distillery. Rather than selling out to a foreign corporation to fund our expansion, we’re putting the power back in the hands of those who have supported us from the beginning. This is our way of fighting back against an unfair system while preserving what makes our company so special.

Over the past year, we’ve secured multiple major gin trophies in Australia and internationally. If we were foreign owned, our unique identity and innovative spirit could be at risk.

That’s why we want you to support Australian owned independent distillers wherever possible.

All of my industry colleagues are committed to staying true to what makes us world class, ensuring our unique spirit and craftsmanship remain at the heart of everything we do.

Matt and Ali Clarke. Picture: Supplied

This isn’t just about Prohibition – it’s about preserving and championing Australia’s entire craft spirits industry before it’s swallowed up by foreign interests.

Stand with us. Don’t just be a consumer – be part of something bigger. If you believe in backing local businesses, in seeing Australian spirits shine on the world stage, now is the time to speak up. This outdated tax system is holding us back, and we need change. Let’s champion homegrown talent, protect our craft and ensure the future of Australian spirits is one we can all be proud of. Together, we can make a difference.

Adam Carpenter is the co-founder of Prohibition Liquor

Originally published as Why Aussies are being ripped off buying spirits locally