Volume 195 - Issue 11
Alcohol tax reform: now is the time
Authors: Christopher M Doran, Wayne D Hall, Brian R Vandenberg, Todd A Harper, Jane E Martin and Mike Daube
Med J Aust 2011; 195 (11): 660. || doi: 10.5694/mja11.11191
Published online: 12 December 2011
Published online: 12 December 2011
To the Editor: Alcohol misuse is one of the leading causes of preventable death, illness and injury in Australia because too many Australians drink too much alcohol too often. The evidence is clear on what are the most effective strategies to curb alcohol misuse at a population level.1 By far the most effective of these is increasing the price of alcohol by increasing alcohol taxes.
Aside from some positive features, such as lower tax on low-alcohol and mid-strength beer and the higher tax on alcopops, the alcohol taxation regimen in Australia is flawed from both an economic and public health perspective. A review of the tax system led by Secretary to the Treasury, Ken Henry, concluded that “current taxes on beer, wine and spirits are incoherent”, and recommended taxation reform using a volumetric tax.2 The response from the federal government to this review has echoed the failures of previous Australian governments to avoid increasing taxes.
An independent coalition called the National Alliance for Action on Action (NAAA) has been formed with the goal of reducing alcohol-related harm.3 The NAAA represents a broad-based alliance of major health and community organisations that advocate for more effective responses to Australia’s drinking problems. Recognising that there is no single solution, the NAAA has focused on three priority areas: alcohol pricing and taxation; alcohol marketing and promotion; and alcohol availability.
The Australian Government’s national tax forum held on 4–5 October 2011 in Canberra was an ideal opportunity for an informed discussion about alcohol tax reform. However, despite acknowledgement by the government that the current system does not effectively target the health and social costs of alcohol abuse, alcohol taxation was not part of the tax forum agenda.4 This was disappointing. At an NAAA day of action on 6 July in Canberra, assurances were given by Treasurer Wayne Swan and Health Minister Nicola Roxon that alcohol tax would be discussed at the forum. These assurances were aired publicly and in a number of media forums. The forum discussion document indicates that this promise was not honoured.5
This complex issue has not been resolved. We feel it is vital for the health and wellbeing of the Australian community that the reforms recommended by the Henry review remain on the political agenda.
Competing interests
No relevant disclosures.
References
- Anderson P, Chisholm D, Fuhr DC. Effectiveness and cost-effectiveness of policies and programmes to reduce the harm caused by alcohol. Lancet 2009; 373: 2234-2246. 0_CBBHEBEJ
- Australia’s future tax system. Final report; detailed analysis. Chapter E: enhancing social and market outcomes. E5. Alcohol taxation. Canberra: Australian Government, The Treasury, 2008. http://taxreview.treasury.gov.au/content/FinalReport.aspx?doc=html/Publications/Papers/Final_Report_Part_2/chapter_e5.htm (accessed Aug 2011.
- National Alliance for Action on Alcohol (NAAA). Reducing harm from alcohol — creating a healthier Australia. Melbourne: VicHealth, 2010. 0_CBBGIDDH
- National Alliance for Action on Alcohol. Reducing harm from alcohol. Creating a healthier Australia. Canberra: NAAA, 2010. http://www.phaa.net.au/documents/101126Attachmenttosub-NAAA PositionStatement-Reducingharmfromalcohol-creatingahealthierAustralia.pdf (accessed Aug 2011).
- Australian Government. Tax reform: next steps for Australia. Tax forum discussion paper: Canberra: Australian Government, 2011. http://www.futuretax.gov.au/content/TaxForum/discussion_paper/tax_forum_next_steps_for_Australia_20110811.pdf (accessed Nov 2011).