Why Australia Increases Its Beer, Tobacco Tax Every Six Months

Beer and other pro-health taxes have been increased in line with Australia’s inflation-indexed tax policies. Before the August increase, the most recent tax increase took place in February 2023.
Australia increases its beer and tobacco taxes every half year because excise duties are integrated with the consumer price index. The indexing mechanism is adopted due to the fixed monetary value assigned to alcohol excise. This approach contrasts with a percentage-based tax system.
The implementation of rigorous tax policies has a significant role in mitigating the harm of alcohol in Australia. Additionally, it serves to maintain a consistent source of government revenue generated from the taxation of the alcohol industry.