A new report has exposed Australia’s wine tax system as corporate welfare, with Australians paying a billion dollars a year to subsidise the wine industry.
Unlike beer and spirits, which are taxed based on their alcohol content, wine is taxed on its wholesale value. 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.