Senator May Withdraw Support For Australian Alcohol Tax

by Mary Swire, Tax-News.com, Hong Kong

26 February 2009

Australia's Family First Senator, Steve Fielding, has revealed that he is considering withdrawing his support for a government plan to finalize a tax increase on 'alcopops'.

Mr Fielding revealed that he was considering the move after a report commissioned by the Distilled Spirits Industry Council of Australia (DSICA) claimed that an increase on the drinks had had no significant impact upon the country's binge-drinking culture.

Voicing his concern on his official blog, Mr Fielding explained:

"Figures are emerging which confirm my worst fears that alcohol related hospital admissions have not gone down since the alcopop tax was introduced. It’s obvious that the government is not doing enough to help people drink responsibly."

The government introduced the tax increase on pre-mixed alcoholic drinks last April in an attempt to deter binge-drinking by making them less affordable to young people.

However, the measure has yet to be officially passed into legislation, requiring the backing of the Senate.

After reading the DSIA's findings, however, Mr Fielding has urged the government to revise the law and include a clause which will give evidence to show how the tax has contributed to the reduction of binge drinking, remarking:

"Family First has draft laws before the Senate to tackle binge drinking through health warning labels, banning daytime TV advertising of alcohol, taking control of advertising away from the alcohol industry and educating people about the dangers of binge drinking."

"Family First will be moving a sunset clause to the alcopop tax that gives the government six months to start really tackling this problem. The revenue collected by the government since the tax was introduced in April last year will not have to be paid back but the sunset clause puts the government on notice that it has six months to really tackle this issue if it wants my support for this tax", he added, further stating:

"So far the government has done nothing but pull in the dollars. In this time I want to see evidence of real change to Australia’s binge drinking culture, like alcohol related hospital admissions falling and less drunken street violence threatening our communities."

Mr Fielding is currently holding talks with the country's Health Minister, Nicola Roxon, who has expressed concerns over the nature of the DSIA's report, condemning it for distorting public perception of the tax hike.

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