Australia has raised its spirits tax to over $110 per litre of pure alcohol

Australia’s spirits excise duty increased from 3 August 2026 following the twice-yearly automatic Consumer Price Index indexation applied by the Australian Taxation Office. The CPI indexation factor for August 2026 is 1.020 – a 2.0% increase applied to the February 2026 rate of $107.99 per litre of pure alcohol, bringing the new rate to approximately $110.15 per litre of pure alcohol (LAL). For a standard 700ml bottle of spirits at 40% ABV, the excise component is now approximately $30.84, excluding GST. Australia has now increased its spirits excise rate 79 times since automatic biannual indexation was introduced in 1983. It currently holds the third highest spirits tax rate in the world, behind only Iceland and Norway.