Australia’s spirits tax has increased to $107.99 per litre, following the government’s scheduled biannual inflation adjustment, making cocktails and pre-mixed drinks more expensive for consumers.
While the federal government has offered temporary relief to draught beer drinkers through a two-year excise freeze, spirits remain excluded from the measure. As a result, those who prefer spirits-based drinks are expected to feel a stronger cost impact.
Spirits and Cocktails Australia Executive Director Steven Fanner said spirits are taxed more heavily than beer and wine and continue to face automatic tax increases every six months.
“This latest increase means that around $32 of the price of a standard 700mL bottle of gin or whisky goes directly to the government as tax,” Fanner said. He also noted that spirits are becoming increasingly popular in pubs, clubs, and small bars, particularly among women and younger adults.
With Parliament set to resume discussions on the draught beer excise freeze, Fanner urged lawmakers to extend the same relief to spirits-based drinks served on tap in licensed venues, arguing it would help ease cost-of-living pressures for more consumers.
Meanwhile, Night Time Industries Association CEO Mick Gibb acknowledged efforts by state governments to revive night-time economies but warned that the rising spirits tax continues to burden both customers and venue operators.
He said increasing prices have turned cocktails and mixed drinks into a luxury for many, while frequent tax hikes make it difficult for small bar owners to plan and manage their businesses sustainably.

