Venue closures, physical distancing requirements and hits to household income have driven down alcohol tax revenue, with Tuesday's budget revealing a $670 million drop over two years.

Since the Coalition's Mid-Year Economic and Fiscal Outlook in December, alcohol taxes and levies have dropped 1.36 per cent. Booze will still deliver $7.23 billion to federal coffers, including more than $950 million from the Wine Equalisation Tax, and about $5 billion from excises on beer and spirits.