Bundaberg Rum Leads Campaign Against This Federal Government’s Exorbitant Spirits Tax

(Photo: Bundaberg Rum)

Popular Queensland brand, Bundaberg Rum, has started a campaign to end Australia’s high tax on spirits. The federal government is being called on to pause the alcohol tax, which is expected to increase next month.

Bundaberg Distilling Co-Chair Amanda Lampe has called for the government to pause the tax hikes while the system is reviewed.

Bundaberg intends to lead an advocacy campaign, targeting key federal seats, in support of a freeze on the government’s tax increases on spirits. The results of which are said to be crippling businesses and adding to the rampant cost of living pressures.

Bundaberg Distilling Co-Chair Amanda Lampe said, “Australia has the third highest spirits tax in the world, behind Iceland and Norway.” She continued “We are 40% higher than New Zealand and 7 times higher than in the US.” 

According to the Australian Distillers Association, as of 1 August 2023, Australia’s spirits tax was $100.05 AUD ($66.24 USD) per liter of alcohol. Although, this projected spirits tax was not expected to increase to that degree until 2029. The shortened timeline has had a serious impact on smaller producers and may see some Australian manufacturers considering moving businesses overseas due to these rising costs.

It is cheaper to buy a bottle of Bundaberg Rum in Los Angeles, California than the locality in which it is made. Considering that Los Angeles imposes its own state excise tax on spirits which is $3.30 USD ($5.01 AUD) per ≈ 4 liters, the Australian government’s tax is far more imposing in comparison

The federal tax changes twice each year with inflation levels. The biannual increase has resulted in Australians paying $100 per liter of alcohol from last August, with another rise due in February.

Lampe continued, “The way this tax system was conveyed, it just kept going up and up and there is no end in sight … somebody’s got to do something.”

“In terms of potential, it’s huge, but there are loads of small businesses, from rum distilleries in Queensland to Tasmanian whiskey distilleries that are feeling the pressure,” added Lampe.

Australia isn’t the only country to see taxes on alcohol increase dramatically over the past year. Canada has also taken a stance on higher taxes on alcoholic beverages and saw its biggest increase in April 2023. The consensus from businesses, especially smaller producers, appears to be that these taxes are harmful to their potential prospects.

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