With the excise on spirits (and beer) set to rise on 1 February, Diageo’s Bundaberg Rum is expanding its campaign to freeze the tax from Queensland into New South Wales.
Diageo launched the campaign last year, when Bundaberg Rum was taxed at 63 per cent per litre.
The spirits and beer excise are indexed to the Consumer Price Index, which is published twice a year on 1 February and 1 August. In August 2023, the spirit tax crossed the $100 per litre threshold.
Billboards and radio advertisements will target “heartland Bundy towns” including Cairns, Gladstone, Maitland, Coffs Harbour, and Bathurst.
“Australia’s tax on spirits is $103.89 per litre of alcohol, seven times higher than the United States, and significantly higher than the $61.21 New Zealanders pay in tax on spirits.
“The spirits excise system has been in place for 40 years and increases twice a year, every year, in line with inflation. Even before next month’s tax increase, consumers already pay $38.40 to the taxman on a $61.50 1L bottle of Bundaberg Rum UP,” the company said.
Paul McLeay and Bundaberg Distilling Co. chair, Amanda Lampe. (Image: Diageo)
Bundaberg Distilling Co. chair, Amanda Lampe, said the company had been speaking to “Bundy” drinkers across the eastern seaboard.
“They’re very aware of how much more it’s costing them to enjoy an occasional drink at the pub or in their homes,” Lampe said. “Some have told us they’ve stopped going to the pub on a Friday night because it’s too expensive, others can only afford water when they go out for a meal.
“Many say that buying a round for their mates isn’t affordable, and that’s just not right.”
Lampe said Bundaberg Rum is running the campaign on behalf of spirits drinkers across the country.
“While the spirits tax isn’t the biggest pressure people are facing at the moment, they deserve to be able to enjoy their favourite drink at the end of a long working week, if that’s what they choose to do,” she said.
Australian Distillers Association chief executive Paul McLeay said the twice-yearly tax is out of step with other major economies and holding back Australia’s 700 distilleries, many of them small businesses.
“There is enormous potential for Australian distillers to create jobs, exports, and attract foreign investment to become an industry to rival Australia’s proud wine industry, but we need the right policy settings.
“There are so many exciting, innovative spirits distillers popping up across the country, but their businesses need relief from these automatic inflation-linked tax hikes, ” McLeay said.
