Alcohol taxation and the low-strength alcoholic beverage market

Researcher

Alcohol and Other Drugs Council of Australia (ADCA).

Summary

One of the ways for government to influence consumption of alcohol is via pricing, and a major influence in this area is taxation. The aim of this project is to provide comprehensive data on the effects of current indirect taxation on low-strength alcoholic beverages.

Outcomes

The data contributed to the sector’s ongoing alcohol taxation policy development and, in turn, was used as supporting evidence in various alcohol policy development fora, including the Australian Senate Economics Reference Committee’s inquiry into the structure and distributive effects of the Australian taxation system, which reported in June 2004.

Proposed tax rates were formulated based on ADCAs policy, a pricing model was then developed linking each beverage to its taxation treatment. Data were elicited from industry peak bodies via a questionnaire, and from ABS statistics. A sales model linked sales volume for each beverage to price. The final revenue model used the proposed tax rates and outcomes for prices and sales volumes to model taxation revenue.

FARE continues to fund and undertake research that contributes to the knowledge-base about alcohol harms and strategies to reduce them.

This research is used to inform our approach to evidence-based alcohol policy development, ensuring that the solutions we are advocating for are informed by research. FARE’s research is also often quoted by governments, other not-for-profit organisations and researchers in public discussions about alcohol, demonstrating that FARE is seen as a leading source of information.

Join our mailing list

Latest research papers

Alcohol use and harm during COVID-19

This Report provides a snapshot of the recent available data on alcohol use and harm during the COVID-19 pandemic in Australia, focusing on the period between March – May 2020.