Premix tax hike a populist move

A few comments on Nicola Roxon’s move to raise taxes on pre mixed alcoholic drinks; Firstly, according to, all she is doing is adjusting the rate of tax to match that of bottled alcohol. I haven’t been able to find out if the tax on beer and other things is all the same too, that might be a good excuse to write to Nicola.

As long as we are going to tax alcohol, it should be a fair tax across all forms. A simple dollar amount per litre of alcohol provides a basic incentive for makers to produce lower alcohol content drinks, because they’ll be taxed less, and be cheaper. This is the case now with pre mix and bottled alcohol.

Personally, I think this is just a grab for more tax revenue (which is odd, as we are running record surpluses). There is no evidence that the move will do anything to curb binge drinking. If the $8-$12 a go these drinks cost now isn’t deterring people, another buck a can won’t do much.

What might have done something, would have been to change the way we tax these drinks. Lets have a scaled tax on "ready to drink" products, including stubbies of beer and pre mix spirits. How about those that are less than a standard drink, we tax lightly, and those that are a lot more than a standard drink, we tax much more heavily.

Of course not; That might actually work, as well as lowered our tax burden. Can’t have that.

One Response to “Premix tax hike a populist move”

  1. Mike Harmon Says:

    I came across your blog on Technorati. Nice site layout. I will stop by and read more soon.

    Mike Harmon

Leave a Reply