Alcopops tax loophole finally closed

By Rodney Appleyard - 17 Aug, 2009

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The loophole that allowed sales of alcopops to flourish has finally been closed. The single largest investment ever by an Australian Government in preventative health will now be put in place to combat binge drinking.

More than a year after the Rudd Government first moved to address this problem, and after much empty posturing by the Opposition and alcohol distillers, this is a clear win in the battle against binge drinking, according to the Department of Health.

Since the introduction of the legislation 720,000 Less standard drinks are being consumed per week.

For more than a year the Liberal Party outsourced their health policy to the distilling industry and blocked the Government’s attempts to close the tax loophole that saw the sale of alcopops explode by 250 per cent.

The passage of the alcopops legislation also means a $50 million package of measures to tackle binge drinking can now proceed.

This important anti-binge drinking package was jointly agreed to by the Government, Greens and Senator Nick Xenophon and I thank them for their support.

The $50 million package will provide:

  • Community level initiatives designed to tackle binge drinking;
  • A fund to provide sponsorship to local community organisations who provide sporting and cultural activities, as an alternative to other forms of sponsorship;
  • Enhanced telephone counselling services and alcohol referrals; and
  • Possible expansion of existing social marketing campaigns.

The alcopops measure and $50 million package is only part of a suite of Rudd Government measures to combat binge drinking. These measures include:

  • $14.4 million in community-level initiatives to confront the culture of binge drinking, in partnership with sporting and community organisations;
  • $19.1 million to intervene earlier to assist young people and ensure that they assume personal responsibility;
  • $20 million advertising campaign, Don’t Turn a Night Out into a Nightmare, confronting youth with consequences of binge drinking;
  • $872 million funding for preventative health – (the single largest investment ever by an Australian Government in preventative health)
  • Establishment of the National Preventative Health Taskforce to examine ways to address alcohol abuse in the community. The Taskforce’s final report and recommendations are currently under consideration.

The Royal Australasian College of Physicians wholeheartedly applauds the announcement that the long awaited Alcopops tax has been passed in the Senate.

The government’s commitment to invest revenue into preventative health measures such as the National Binge Drinking Strategy was equally welcomed by the RACP.

‘Bipartisan support for this Bill indicates acceptance of the effectiveness of taxation as a means to reduce alcohol consumption and related harms, said Dr Steven Skov, of the RACP Alcohol Advisory Group. There is ample evidence to support this action, but it can’t stop here. It should be just the first step in a comprehensive review of alcohol taxation as part of a range of measures needed to reduce alcohol related harm.’

The College is delighted that the Senate has passed this important legislation and looks forward to working closely with the government in communicating with and educating the community in order to combat the unacceptable levels of illness and injury surrounding alcohol consumption.

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When is the senate voting on the alcopos tax?
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