The debate on binge drinking cont.

Six months on from the Federal Government’s tax increase on RTD’s in April, the Department of Ageing & Health is pleased with the impact the rise had on the market, pointing out that “recent Australian Tax Office figures show a 23 percent decrease in pure alcohol sold in spirit form, between April and June”.

However, industry experience in general suggests that teenage binge drinking has not diminished following the price rise in one particular product range. As the tax is still not official, problems that will arise if the specific legislation does not pass the Senate are being discussed. In the event of the legislation failing, some industry segments, like the Distilled Spirits Industry Council of Australia (DSICA), want the tax retained for use in alcohol education programmes rather than returned to consumers. Nielsen figures show that in the year to July 2008 RTDs (Ready-To-Drink alcoholic beverages) accounted for 19 percent of the off-premise retail market with growth at 4.3 percent, comparable with that for total packaged liquor of 4.2 percent per annum.