Bundaberg Rum calls for freeze on Australia’s spirits tax amid price hikes

The cost of a night out is climbing as Australia’s twice-yearly spirits tax hits drinkers hard.

Bundy Rum talk tax hike

A round at the pub is about to become even more expensive, as Australia’s twice-annual tax hike on spirits pushes a night out with mates beyond the reach of more Australians.

As Australians get set to pay higher tax on their spirits from early next month, iconic Queensland spirits brand Bundaberg Rum will expand its campaign to freeze the spirits tax into NSW.

Billboards and radio advertisements will target heartland Bundy towns including Cairns, Gladstone, Maitland, Coffs Harbour and Bathurst, exposing just how much tax is placed on a bottle of Bundy rum.
After talking to Bundy drinkers up and down Australia’s east coast who feel as though a Friday night drink has become a luxury, the brand is on a mission to help Australians understand why their drinks cost so much, and what they can do about it.

Bundy Rum talk tax hike

Even before February’s tax increase, consumers already pay $38.40 to the taxman on a $61.501L bottle of Bundaberg Rum — a whopping 63 per cent tax rate increase.

Australia’s tax on spirits is $103.89 per litre of alcohol, seven times higher than the United States, and significantly higher than the $61.21 New Zealanders pay in tax on spirits.
The spirits excise system has been in place for 40 years and increases twice a year, every year, in line with inflation.
Chair of the Bundaberg Distilling Co. Amanda Lampe said: “We’ve spoken to Bundy drinkers from towns across the eastern seaboard and they’re very aware of how much more it’s costing them to enjoy an occasional drink at the pub or in their homes.”
“Some have told us they’ve stopped going to the pub on a Friday night because it’s too expensive, others can only afford water when they go out for a meal,” she said.
“Many say that buying a round for their mates isn’t affordable, and that’s just not right.

“Bundy is raising this issue on behalf of spirits drinkers across the country and hundreds of craft distillers.”

Australian Distillers Association chief executive Paul McLeay congratulated Bundaberg Rum for continuing to campaign against Australia’s spirits tax.

Bundy Rum talk tax hike

“These twice yearly spirits tax increases are holding back Australia’s 700 distilleries, many of them small businesses,” he said.

“There is enormous potential for Australian distillers to create jobs, exports, and attract foreign investment to become an “industry to rival Australia’s proud wine industry, but we need the right policy settings.

“Australia’s spirits tax is out of step with other major economies. There are so many exciting, innovative spirits distillers popping up across the country, but their businesses need relief from these automatic inflation-linked tax hikes,” he said.

Originally published as Bundaberg Rum calls for freeze on Australia’s spirits tax amid price hikes