Australians are ditching the beer in droves, but sales in another booze have increased

Australians are ditching the beer in droves, but the nation’s top-shelf drinkers are tipped to spend $400m on another booze. See what it is.

Top-shelf drinkers will pour an extra $400m into Treasury coffers with a surge in spirit sales across Australia.

Forecasts for excise on spirits and pre-mix drinks was up 13 per cent, compared with the pre-election budget forecasts.

The nation has been turning away from beer, with tax receipts forecast to drop by $30m. Smoking taxes have also been going down, with a $400m dip in tax receipts compared with pre-election forecasts.

The trend towards spirits has in part been driven by weight-conscious drinkers wanting to avoid carbohydrates, with an explosion in pre-mixed drinks with sugar-free sodas.

Top-shelf drinkers will pour an extra $400m into Treasury coffers with a surge in spirit sales.

“Forecasts for fuel and tobacco excise receipts have been downgraded since PEFO (Pre-election Economic and Fiscal Outlook), while alcohol excise and customs duty have been upgraded,” page 160 of Budget Paper No. 1 read.

“The downgrade in fuel and tobacco excise is driven by a weak outlook for consumption of these goods, partially offset by increases to excise rates.

“The outlook for alcohol excise receipts has improved, driven by stronger consumption of higher-taxed spirits and pre-mixedbeverages compared with lower-taxed beer.”

The actual take on spirit tax was $3.2bn in the 2021/22 financial year, with that expected to grow to $3.8bn in 2025/26 asmore people switch to spirits.

The nation has been turning away from beer, with tax receipts forecast to drop by $30m.

Forecasts for beer excise was down $30m on forecasts to $2.62bn, a drop of 1 per cent.

Actual receipts were $2.4bn in 2021/22, rising to $2.93bn in 2025/26, based on indexation of the taxes.

The move to spirits was likely to flow through to changing menus at pubs, bars and restaurants across the country.

Pubs and hospitality businesses have been bleeding cash as a result of Covid-19 lockdowns.

Many deferred payments on their debts during the closures, and while banks did not foreclose on loans, interest payments continuedto build up.

Stephen Ferguson, chief executive of the Australian Hotels Association, welcomed the government’s moves to increase immigration and provide childcare relief to help the industry get more staff.

Stephen Ferguson chief executive of the Australian Hotels Association. Picture: Nikki Davis-Jones

Mr Ferguson said pubs were not expecting any decreases in alcohol excise to encourage people to head out for a drink.

But he warned the hospitality industry was still feeling the effects of lockdown.

“People who borrowed in the pandemic, if they had a $1m loan, they could defer their payments but the interest bills keptcoming,” he said.

“Pubs are 15 per cent behind where they would have been.”

MULTINATIONAL COMPANIES CRACKDOWN

Facebook and Google will be forced to pay their “fair share of tax” with a tightening of rules that will boost Federal Governmentcoffers by almost $1 billion.

Sneaky loopholes that saved multinational companies millions will be closed.

There will be a crackdown on companies moving money to their sister businesses in offshore tax havens such as the Bahamasand adding dodgy debts to their accounts to reduce what they pay the ATO.

Treasurer Jim Chalmers cemented the tax changes in the Budget Papers.

Google will be forced to pay their “fair share of tax” with a tightening of rules. Picture: AFP

The papers forecast tax receipts from the hard line measures would jump $970 million over four years as multinational companieswere finally held to account.

The increase would happen through “comprehensive action to ensure multinationals pay their fair share of tax.”

The changes include “limiting the amount of debt-related deductions multinationals can claim and closing loopholes on the use of intangibles and intellectual property,” Mr Chalmers said in the Budget Papers.

“These measures are estimated to increase receipts by $970 million over the 4 years from 2022–23.”

Facebook will be forced to pay their “fair share of tax” with a tightening of rules. Picture: AFP

“Debt-related deductions” was a tactic that allowed clever accountants to move millions through intracompany loans to reducetax.

International giants such as tech companies like Facebook and Google will also be forced to reveal more of their tax informationto the public.

The tax grab was part of $28 billion worth of savings that will give Mr Chalmers more scope to pay for services such as theNDIS or reduce the budget deficit.

Tech giants have been slammed for their tax dodging tactics in Australia where they cream tens of millions in profits.

Questions have been raised about whether they were acting as responsible corporate citizens by moving mountains of cash totheir operations in lower tax countries.

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Originally published as Australians are ditching the beer in droves, but sales in another booze have increased