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Australia Considers 'Health Tax' on Alcohol
August 7, 2006

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News Summary

A proposed 10-percent tax on alcoholic beverages is being pitched as a way to cut binge drinking in Australia by raising prices, but a leading addiction expert said the tax only makes sense if proceeds go toward prevention and treatment programs, the Australian Broadcasting Co. reported Aug. 6.

Australian government health ministers recommended the tax in their new National Alcohol Strategy. But Paul Dillon of Australia's National Drug and Alcohol Research Center said that higher prices alone won't prevent binge drinking.

"The government has increased the tax on alcohol a number of times and it doesn't really seem to have had any significant impact on Australian drinkers," he said. "I don't think you really think about the money when you start binge drinking. I think it's those people who drink far less that are going to be affected by this tax because they will think about maybe their first drink and moderate their drink accordingly. But the big drinkers, realistically, I doubt very much whether it will have an impact."

However, said Dillon, "I think if we are going to see another tax on alcohol it's very important for that money to be fed into treatment programs, prevention programs, education programs that may make a significant difference when it comes to the consumption of alcohol in Australia."

 

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