The Liquor Stores Association of Western Australia (LSA WA) is demanding urgent reform to Australia’s alcohol tax system after yet another increase in spirits excise took effect today—further driving up the cost of popular drinks like whisky, gin, vodka, tequila and rum.
“This is not just a tax – it’s a punishment,” said LSA WA CEO Peter Peck.
“Every six months, the Federal Government quietly cranks up the excise on spirits while importers, consumers, small retailers, and local distillers are left to pick up the tab. It’s unjust, it’s unsustainable, and we’re calling it out.”
From today, spirits in Australia will be taxed at almost $106 per litre of pure alcohol—a figure that has increased under the government’s automatic CPI-linked indexation.
“That means Australians are now paying over $30 in tax per bottle, even before it hits the shelves” Mr Peck added.
“This system is broken. It penalises small business, it distorts the market, and it’s killing consumer choice,” he said.
“It’s time to align spirits excise with the way we tax draught beer.”
Under the Government’s new legislation, tap beer will see a two-year freeze on the biannual CPI increase for draught beer excise from August 2025 to August 2027.
“This freeze on draught beer excise is a step in the right direction—but it’s only one part of the picture,” said LSA WA CEO Peter Peck.
“Independent liquor stores, importers and everyday Australians who enjoy a whisky, gin or rum are still being slugged some of the highest alcohol taxes in the world.”
LSA WA says the current excise model disproportionately affects Western Australia’s growing craft distilling industry, many of whom are trying to build local brands, tourism ventures, and export markets—all while being slugged at the highest tax rate in the country.
“Spirit producers are making world-class spirits, creating jobs, and driving regional growth but instead of supporting them, the government is taxing them into the ground” he added.
“You can’t build a viable local industry with both hands tied behind your back.”
Retailers are also under siege. With prices rising again due to the excise hike, many independent liquor stores are being forced to choose between absorbing the increase or passing it on to increasingly price-sensitive customers.
“This hits every part of the supply chain—distillers, retailers, and consumers,” Mr Peck said.
“It’s bad for business and bad for people just trying to enjoy a simple Friday night gin
and tonic without being gouged at the checkout.”
Mr Peck has called on the Federal Government to freeze further CPI-linked increases to spirits excise and immediately begin consultation on long-overdue tax reform that puts all alcohol categories on an even footing.
“It’s 2025 and we’re still taxing spirits like it’s the 1950s,” said Peck.
“This isn’t about encouraging alcohol consumption—it’s about fairness, transparency, and supporting small business.
“Spirits are not luxury goods. It’s time the tax system stopped treating them that
way.”
Listen to Peter Peck on ABC Radio on the issue below.