Federal budget 2024: Beer, wine and spirits alcohol excise rakes in $8bn

Alcohol excise is forecast to earn $2.6bn from beer, $3.6bn from spirits and $1.8bn from other alcohol, according to the federal budget.

Beer, wine and spirits consumers remain a revenue line in Treasurer Jim Chalmers’ third budget, which is on track to sap $8bn from drinkers in the 2024-25 financial year.

Australia’s alcohol excise regime on beer and spirits is among the highest in the world, and calls for tax relief for the sector continue to grow.

Industry advocates, including partnerships between the likes of international drinks maker Diageo and the Australian Distillers Association, have in the past 12 months been calling for a freeze in indexation to provide relief to a hospitality sector already struggling under higher input costs around labour and electricity.

Australia’s alcohol excise on beer and spirits is making the government $8bn in the 2024-25 financial year. Picture: NCA NewsWire/David Geraghty

Receipts from tobacco excise are forecast to soften in the next five years while government indexation on alcohol, derisively known as the infinity tax because of the twice-yearly CPI-linked uplift, is expected to yield $9.4bn by 2027-28 financial year.

Excise and customs, including petrol and diesel taxes at $47bn, represent 7 per cent of taxation revenues for the federal government.

Alcohol excise is forecast to earn $2.6bn from beer, $3.6bn from spirits and $1.8bn from other alcohol, according data compiled from budget paper 1.

Funding to help celebrate Australia Day

Australians will be encouraged to celebrate Australia Day events next year, with the National Australia Day Council given funds to organise events to help us “reflect on the story of our country, celebrating its diversity and multiculturalism while acknowledging our past”.

The NADC will be given an additional $1.5m a year over the next four years to organise public events.

“The funding will provide financial support for hundreds of events around the country, fostering a more inclusive and culturally rich nation,” Public Service Assistant Minister Patrick Gorman said.

“The funding will also provide financial support for Indigenous culture in Australia Day events.

“By supporting a wider range of community events around Australia, we will foster a deeper understanding and appreciation for our nation’s rich tapestry.”

Originally published as Federal budget 2024: Beer, wine and spirits alcohol excise rakes in $8bn