Unlike beer and spirits, which are taxed based on their alcohol content, wine is taxed on its wholesale value in Australia. As a result, cheap wine attracts far less tax than beer or spirits.
Per litre of alcohol, cheap wine attracts only $3 in tax. Bottled beer pays over ten times more ($35), premium wines pay $55, while spirits attract an alcohol excise of $80 per litre of alcohol.
Modelling in The Australia Institute report, The goon show: How the tax system works to subsidise cheap wine and alcohol consumption, shows that if wine were taxed in the same way as beer, an extra $1.4 billion in tax revenue would be raised.