Alcopops to remain 70% more expensive

The federal government's alcopops hangover has been cured after a controversial tax
hike slapped on the drinks was passed by the Senate.
The 70 per cent tax rise on ready-to-drink alcoholic beverages was opposed only by
Family First Senator Steve Fielding in the vote on Thursday.
The tax on alcopops jumped from $39.36 to $66.67 per litre of alcohol as a result of
the government's move, bringing the impost into line with tax on straight spirits.
The measure, which will pour $1.6 billion into government coffers over four years,
has been labelled a tax grab by the spirits industry and some in the coalition.
The federal opposition, who with the help of Senator Fielding voted down an earlier
attempt to pass the tax, supported the legislation this time round.
However, Nationals Senate leader Barnaby Joyce said after the vote that his party
did not support the legislation.
"We see it as no more than another tax grab," he told parliament.
"It is not going to change the health of teenagers."
Senator Joyce said he didn't take the vote to a division because it was clearly
going to be passed anyway.
The move also left a sour taste for the Distilled Spirits Industry Council of
Australia (DSICA), which claimed it would cost drinkers an extra million dollars a
day.
"Everyone knows this is a tax grab masquerading as health policy," DSICA spokesman
Stephen Riden said.
"It has failed to reduce alcohol misuse and instead slugs ready-to-drink drinkers an
extra million dollars a day."
In defence of the tax rise, manager of government business in the Senate Joe Ludwig
said the draft laws closed a loophole by which alcopops had been taxed at a lower
rate than other spirits.
"Alcopops will now be taxed at the same rate as other spirits, not more, not less,"
he said.
Beer and grape wine products which attempted to taste like alcopops would also now
be taxed as a spirit-based product.
Senator Ludwig vowed to honour a pledge to adopt $50 million worth of anti-binge
drinking measures negotiated by the Australian Greens and Independent senator Nick
Xenophon.
"After a long and protracted debate, it is good to see an outcome that will result
in positive movement aimed at tackling binge drinking in this country," Greens
senator Rachel Siewert said.
Health Minister Nicola Roxon said the alcopops tax increase had cut into spirits
consumption, saying 720,000 fewer standard drinks were being consumed each week
after the legislation was adopted last year.
Health and anti-alcohol groups welcomed the tax hike, saying the extra money would
be directed at the root causes of binge drinking and help wean sporting clubs off
alcohol sponsorship.
Alcohol Policy Coalition member Craig Sinclair from Cancer Council Victoria said the
creation of a $25 million health sponsorship fund for community sport was
particularly significant.
"This initiative will support sporting and cultural activities across the country to
get out from under the grip of the sponsorship deals that have been provided by the
alcohol industry," he said.
John Rogerson, CEO of the Australian Drug Foundation, said the mandatory health
warnings on alcohol advertising also contained in the agreement were another
significant step forward in tackling the burden of alcohol in the community.
Australian Medical Association president Andrew Pesce said the next step was to roll
out alcohol taxes even further.
"It's time now to ... establish a 'volumetric tax' on all alcohol beverages, so that
the more alcohol a beverage contains, the higher the tax it attracts," he said.
The Excise Tariff Amendment (2009 Measures No. 1) Bill 2009 [No.2] and Customs
Tariff Amendment (2009 Measures No.1) Bill 2009 [No.2] await royal assent.