Taxes go up in smokes – and alcohol

Phillip Hudson
February 01, 2013
Herald Sun

SMOKERS will cough up 28c more tax for a packet of cigarettes from today and the Federal Government will take an extra 24c for every slab of full-strength beer sold.

The slug in the so-called “sin taxes” for smokers and drinkers will also mean the tax on a bottle of spirits reaches $20.

The changes are part of the automatic rise in indexation introduced 30 years ago by Bob Hawke and are expected to pour millions of dollars extra into the fragile federal Budget.

From today, retailers, shopkeepers and bar staff must collect the extra tax.

Other factors such as competition, business costs and profit margins could mean prices paid by consumers may be more or less than the tax rise and vary between brands.

Smokers will be slugged 11c more for a pack of 20 cigarettes, 14 cents extra for a pack of 25s and will pay 16 cents more tax for a pack of 30s. The tax on a packet of 40s increases by 22 cents while the excise on a pack of 50s climbs by 28 cents to $17.72.

A smoker buying a pack of 30s every day will pay $74 tax for their weekly habit.

Beer drinkers will pay 24c more tax on a slab of 24 full-strength 375ml cans with Canberra’s take now $15.21 of the price they pay.

The tax on a slab of light beer rises 9c to $5.40.

A 285ml pot served over the bar will rise by 1c if it is full strength but will be unchanged if it is light.

Spirit drinkers will hand over an extra 54c in tax for a slab of 24 cans of pre-mixed spirits, taking the taxman’s share to $34.37.

A six-pack of pre-mixed spirits will attract 13c more excise, while the tax on a 700ml bottle of spirits jumps by 32c to $20.05 a bottle.

The tax office said the excise rates were based on the rise in the Consumer Price Index over the past six months.

Wine taxes are not affected.

The Howard government’s freeze to petrol taxes in 2001 means motorists are paying about 15c-a-litre less tax at the fuel pump.

Posted in

Subscribe to our free mailing list and always be the first to receive the latest news and updates.