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Australia’s Alcohol Tax Just Changed Again: Here’s What That Means For Your Weekend Drinks

4th Feb 2026
Written by: Elizabeth McDonald
  • two negroni on the table

The Australian cocktail crowd got some news this week: the tax on alcohol just increased again, and if you’re wondering how this might affect your weekend plans, we've done the digging so you don't have to. From bottle shops to bars, here's everything you need to know about what this new tax means for you, and for your favourite bars.

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What’s New With Alcohol Tax?

Starting 2 February 2026, the excise on spirits—gin, vodka, whisky, and other strong drinks—has gone up to $108 per litre of pure alcohol. That might sound technical, but in plain terms, some of your favourite bottles are likely to get a little pricier.

Beer lovers, don’t panic just yet—the government has paused the tax increase on draught beer for two years, which means your tap beer at the pub shouldn’t get hit… at least for now. Packaged beer, wine, and spirits still have to keep up with the usual inflation adjustments.

Why Did This Happen?

Australia’s alcohol tax system is a bit of a moving puzzle. For spirits, the excise rate automatically rises with inflation, which helps the government keep revenue steady over time.

The idea is to balance public finances without throwing big new taxes on everything overnight. Plus, the temporary freeze on draught beer is a little reprieve to keep your schooner affordable.

How the Tax Actually Works

Here’s a quick cheat sheet:

  • Excise duty is a tax applied when alcohol is made or imported.
  • For spirits, the tax is based on the amount of pure alcohol, so higher-strength bottles get taxed more.
  • Beer and wine are taxed differently, and the freeze only applies to draught beer served in bars—not the bottled stuff.

So a good chunk of what you pay at the bottle shop is already tax, even before GST and retail markups.

What This Means for Drinkers

Expect Some Price Changes

If you love spirits or cocktails, you likely to start to see slightly higher prices at bars and bottle shops. Draught beer at the pub is safe for now, but packaged beer, wine, and spirits could creep up over time.

Night Out Budgets Might Stretch A Bit

For venues, the rising spirit excise can make nights out feel pricier, especially for cocktails and fancy drinks. Small bars may feel the pinch more than big chains, which could trickle down to your tab.

What About Aussie Producers?

Distillers Feeling The Squeeze

Local distilleries are feeling this one. Higher excise means higher costs before the first drop even hits the bottle. Smaller producers worry this might make it harder to compete with imports or to fund new, creative products.
 

Brewers and Wineries: A Mixed Bag

  • Beer: The draught freeze is good news for pubs and brewery bars, but canned and bottled beer still faces the usual tax hikes.
  • Wine: Mostly unaffected by this excise change, but higher bar prices and changing buying habits could still affect sales.

There’s a small win, though. Tax remissions for small producers are increasing from $350k to $400k per year, helping out some of the little guys.

So, What Does This Mean For You?

Basically, your next night out or bottle-o haul might cost a touch more if you’re reaching for spirits. Beer on tap is safe for now, and wine lovers shouldn’t notice much. For producers and bars, it’s about balancing rising costs while keeping your nights out fun and affordable.

In the meantime, make sure you get out there and support your favourite bars, hit the best pubs for a pint, and whip up your own cocktail creations at home (we hear the bartender is cute).

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