The excise rise is linked to the consumer price index and occurs on August 1 and February 1 every year.73.THE half-yearly "sin taxes" on beer and cigarettes will jump by twice as much as usual because of the high inflation rate - a move that will itself further increase cost of living pressures.
While ministers are quick to announce similar "adjustments" to pensions and other benefits, no minister puts out a press release announcing these tax rises.
Last week the Bureau of Statistics said the cost of living was running at its fastest pace in 13 years with prices across the board rising by by 4. Known as automatic indexation, it was introduced 25 years ago by the Hawke government to end the horror budget-night headlines declaring "beer, cigs up" that took attention away from spending announcements. There is no extra tax being collected on a glass of light or full-strength beer served across the bar, but the excise on a mid-strength beer rises by one cent.
Ready-to-drink spirits face a further price rise on top of that imposed wall base by the Government in the recent budget, with the tax on a six-pack of premixed alcopops rising by up to 24 cents. Those buying a pack of 20 smokes will pay an extra 14 cents in tax.
From per cent last financial year and by 1.
Smokers and drinkers could face a price rise greater than the excise adjustment because retailers and manufacturers may take the opportunity to pass on other price rises relating to production costs and profit margins. The Government hopes it will pass unnoticed.com/ chinatopsupplier
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Spirit drinkers will hand the Rudd Government almost $18 each time they buy a 700ml bottle of whisky or gin, with the tax up by 49 cents, and by 46 cent on a bottle of brandy. The Government expects to collect $9 billion this year in alcohol and tobacco excise