Has your favourite drink been hit with an unfair 70% tax increase?
ALCO TAX RIP-OFF
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Australians say no to a ‘double’
The vast majority of Australians do not want a second rejection of the controversial ‘alcopops’ tax hike by the Australian Senate to be the trigger for a double dissolution election, according to new research.
Conducted by Galaxy Research, the national survey found two-thirds (65%) of Australians believe a second rejection of the 70% tax increase on Ready-to-Drink (RTD) alcohol products would be an “illegitimate” reason to call a double dissolution election. Only 25% of respondents thought this would be a “legitimate” reason for both houses of Parliament to be dissolved.
“The Australian public does not think a second rejection of the RTD tax bill is any justification for an early election,” said Mr Stephen Riden, Information and Research Manager for the Distilled Spirits Industry Council of Australia (DSICA).
The poll also found strong ongoing opposition to the taxation of RTD products as a solution to youth binge-drinking. A significant 78% of respondents believe the tax hike should be abandoned in favour of a more comprehensive strategy to tackle binge-drinking among young Australians.
While half (51%) of respondents “strongly agree” with the scrapping of the tax, only 9% of Australians “strongly disagree” with such a move.
Support for abandoning the RTD tax hike in favour of other measures remains consistent, with 81% in July 2008 “agreeing” the tax should be dumped and 77% “agreeing” in January 2009.
The latest survey also found that almost three-quarters (73%) of the population believe the RTD tax increase is ineffective in addressing binge-drinking among young people. Of those polled, 42% rated the RTD tax trial as a “very ineffective” measure.
This finding reflects the consistent public sentiment over the last year, with 77% considering the RTD tax hike as “ineffective” in July 2008 and 78% rating it “ineffective” in January 2009.
“Australians continue to view the RTD tax hike as a failure. We hope the Government listens to the will of the people and replaces this narrowly focused tax with real solutions to problem drinking,” Mr Riden said.
The Galaxy Research survey was carried out on 1-3 May and was commissioned by the Distilled Spirits Industry Council of Australia. The statistically significant national sample of 1,046 respondents aged 18 years or over was weighted to reflect the latest ABS population statistics. Click here to read the complete survey (PDF Document).
Media Contact Details:. Stephen Riden, DSICA - 0408 372 496 or John Morton, Ethical Strategies - 0416 184 044
RTD tax fails the test of proof: Only days to go and still no evidence to show it’s worked
Supporters of the Government’s 70% tax hike on Ready-to-Drink (RTD) alcohol products have themselves highlighted the severe lack of evidence that the narrowly-focused tax measure has reduced binge drinking among young Australians.
One of the most vocal pro-tax organisations even went so far as to say, “... it is important to make decisions even with limited evidence...” 1, in its submission to the Senate Standing Committee on Community Affairs Inquiry, which commenced today.
Stephen Riden, Information and Research Manager for the Distilled Spirits Industry Council of Australia (DSICA), noted the lack of evidence supplied by supporters of the tax.
“These groups normally demand evidence-based healthcare and policy, yet in this instance appear happy to support the tax without one iota of evidence that it has achieved what it supposedly set out to do. Even more critically, the evidence that does exist shows that the tax has created a series of serious unintended consequences,” he said.
“Just because they are ‘not-for profit’ organisations doesn’t mean they should be ‘not-for evidence’. All available evidence points to the tax having failed to have any impact on dangerous drinking among young people,” said Mr Riden.
DSICA points to substantive evidence that the RTD tax has not reduced risky or dangerous drinking among young Australians:
- Hospitalisation data from six states reveal no significant change in alcohol-related hospitalisations of young people following the introduction of the tax hike; 2
- The largest ongoing study of self-reported alcohol consumption found no reduction in the volume of alcohol consumed by 18-24 years olds – male or female – between July and December 2007 and July and December 2008;3
- International experience has shown that a decrease in RTD consumption following tax hikes is often offset by substitution to other forms of alcohol. To date there is no evidence that targeted RTD taxes reduce alcohol related harm.4
“Focussing on one particular product to address the society-wide issue of binge drinking is fundamentally flawed. It is akin to addressing the issue of obesity by making chicken drumsticks outrageously expensive. People will simply eat the rest of the chicken or buy hamburgers or pizza instead.”
DSICA stands by its evidence-based argument for abandonment of this tax trial and introduction of a more comprehensive community-based approach.
To this end, DSICA wants the refunded tax to be returned to the community for education and harm minimisation programs if the legislation is voted down by the Senate.
References:
- Public Health Association of Australia, 2009. Submission from the Public Health Association of Australia to the Senate Standing Committee on Community Affairs
- Access Economics, 2009. Trends in Alcohol-Related Hospital use by Young People
- Roy Morgan Research – Single Source Study, 2009. Alcohol Consumption Shifts in 2008
- National Drug Policy New Zealand, 2009. Ready-to-Drink Beverages Policy Paper
Media Contact Details:. Stephen Riden, DSICA - 0408 372 496 or John Morton, Ethical Strategies - 0416 184 044
Distillers to donate RTD tax
refund to leading health group
New warning labels to be voluntarily introduced
Following yesterday’s decision by the Australian Senate to reject the RTD tax introduced in April 2008, Australia’s largest distillers have confirmed their immediate commitment to donate any tax refunds they receive to DrinkWise Australia.
Drinkwise Australia is an evidence-based organisation focused on promoting change towards a more responsible drinking culture in Australia. DrinkWise Australia has confirmed it will accept the funds to continue their critically important education and intervention programmes.
Mr Michael McShane, the Chairman of the Distilled Spirits Industry Council of Australia reiterated DSICA’s position on the refund. “As an organisation we have said that all revenue collected from the tax should be returned to the community for use in alcohol-related harm-minimisation programs,” he said.
Mr Chris Watters, CEO of DrinkWise Australia welcomed the announcement and said, “These funds will go a long way to educating the community about the safe and appropriate consumption of alcohol, helping to create a safe drinking culture for current and future generations.”
The industry has also pledged new, enhanced responsible consumption labels as part of its commitment to real solutions and an end to the misuse of alcohol in the community.
Mr McShane said that the industry was serious about trialling new approaches after witnessing the serious unintended consequences associated with the Government’s tax approach.
“The debate surrounding the failed RTD tax has made us even more determined as an industry to work harder with the Government and health groups to bring about genuine and comprehensive solutions to binge-drinking,” he said.
“The initiatives announced today are the first tranche in what we see as on ongoing opportunity to bring about real changes in the way alcohol abuse is tackled in this country,” Mr McShane said.
The companies that today committed to donate any tax refunds are: Brown-Forman Australia; Jim Beam Brands Australia; Bundaberg Distilling Company; Diageo Australia; Maxxium Australia and Suntory Australia.
For further information on DrinkWise please visit www.drinkwise.com.au
Media Contact Details:. Stephen Riden, DSICA - 0408 372 496 or John Morton, Ethical Strategies - 0416 184 044 or Lauren Ure, DrinkWise Australia – 03 9935 4700 or 0400 973 011
RTD tax fails the test of proof: Only days to go and still no evidence to show it’s worked
Supporters of the Government’s 70% tax hike on Ready-to-Drink (RTD) alcohol products have themselves highlighted the severe lack of evidence that the narrowly-focused tax measure has reduced binge drinking among young Australians.
One of the most vocal pro-tax organisations even went so far as to say, “... it is important to make decisions even with limited evidence...” 1, in its submission to the Senate Standing Committee on Community Affairs Inquiry, which commenced today.
Stephen Riden, Information and Research Manager for the Distilled Spirits Industry Council of Australia (DSICA), noted the lack of evidence supplied by supporters of the tax.
“These groups normally demand evidence-based healthcare and policy, yet in this instance appear happy to support the tax without one iota of evidence that it has achieved what it supposedly set out to do. Even more critically, the evidence that does exist shows that the tax has created a series of serious unintended consequences,” he said.
“Just because they are ‘not-for profit’ organisations doesn’t mean they should be ‘not-for evidence’. All available evidence points to the tax having failed to have any impact on dangerous drinking among young people,” said Mr Riden.
DSICA points to substantive evidence that the RTD tax has not reduced risky or dangerous drinking among young Australians:
- Hospitalisation data from six states reveal no significant change in alcohol-related hospitalisations of young people following the introduction of the tax hike; 2
- The largest ongoing study of self-reported alcohol consumption found no reduction in the volume of alcohol consumed by 18-24 years olds – male or female – between July and December 2007 and July and December 2008;3
- International experience has shown that a decrease in RTD consumption following tax hikes is often offset by substitution to other forms of alcohol. To date there is no evidence that targeted RTD taxes reduce alcohol related harm.4
“Focussing on one particular product to address the society-wide issue of binge drinking is fundamentally flawed. It is akin to addressing the issue of obesity by making chicken drumsticks outrageously expensive. People will simply eat the rest of the chicken or buy hamburgers or pizza instead.”
DSICA stands by its evidence-based argument for abandonment of this tax trial and introduction of a more comprehensive community-based approach.
To this end, DSICA wants the refunded tax to be returned to the community for education and harm minimisation programs if the legislation is voted down by the Senate.
References:
- Public Health Association of Australia, 2009. Submission from the Public Health Association of Australia to the Senate Standing Committee on Community Affairs
- Access Economics, 2009. Trends in Alcohol-Related Hospital use by Young People
- Roy Morgan Research – Single Source Study, 2009. Alcohol Consumption Shifts in 2008
- National Drug Policy New Zealand, 2009. Ready-to-Drink Beverages Policy Paper
Media Contact Details:. Stephen Riden, DSICA - 0408 372 496 or John Morton, Ethical Strategies - 0416 184 044
Academic ‘Study’ on alcopops exposed as a single page of outdated and incorrect data
This week’s release of an academic report claiming to be a serious attempt to show a reduction in alcohol consumption has today been exposed as being a single-page ‘assessment’ posted on a website. (see www.mja.com.au/public/issues/190_06_160309/chi11362_fm.html)
The authors claim that sales data from after the introduction of the RTD tax hike revealed an overall fall in alcohol consumption. However, the authors admit that their analysis was actually based on an AC Nielson report generated from only three months of data (May-July 08 vs May-July 07).
Critically, for a report into alcohol consumption, it covered only off-premise sales and specifically excluded draught beer – one of the largest selling product categories!
Chairman of the Distilled Spirits Industry Council of Australia (DSICA), Mr Michael McShane, dismissed the report’s finding as lacking any substance.
“This analysis doesn’t add up and avoids dealing with the fact that beyond the world of academia, Australians know the tax has failed,” Mr McShane said.
Importantly, AC Nielson stated in its original report that, 'Due to seasonality and a short time frame since the RTD tax increase, a clear conclusion of the full impact on consumer off-premise liquor sales will be able to be assessed in the coming months'.
The single-page ‘report’ also looks at absolute consumption changes by category – it does not try to differentiate changes caused by the RTD tax increase and what was just a continuation of an ongoing trend. For example, wine consumption has been in decline for the last three years, mainly as a consequence of the largest wine producers moving away from the cask wine market. It is dishonest to link reduced wine consumption with the increased RTD tax.
“It’s now up to the Senate to look at the facts on why the RTD tax hike has failed, vote it down and move on to working on genuine, long-lasting solutions to the problem of alcohol misuse”, Mr McShane said.
Media Contact Details:. Stephen Riden, DSICA - 0408 372 496 or John Morton, Ethical Strategies - 0416 184 044
Unfair, Unworkable, Dishonest
Alcopop tax failure campaign confronts returning politicians
‘Unfair, Unworkable and Dishonest’ is how the Federal Government’s 70% tax hike on Ready-to- Drink (RTD) alcohol products has been branded in the latest phase of the campaign to have the controversial tax trial scrapped.
A mobile billboard campaign will confront Federal politicians as they arrive in Canberra this week after the summer recess. An initiative of the Distilled Spirits Industry Council of Australia (DSICA), the billboard will travel from Canberra Airport to Parliament House and around key dining precincts frequented by parliamentarians.
“This new campaign seeks to highlight the failure of the so-called alcopops tax - both as a health initiative and a revenue raiser,” said Mr Stephen Riden, Information and Research Manager at DSICA.
“They need to understand that the tax is unfair. It disadvantages responsible drinkers who prefer the convenience and known alcohol content of pre-mixed drinks and does nothing to address the issue of alcohol abuse by some young people,” he said.
“This tax is also unworkable as it fails to tax alcohol products in a way that simply does not lead to substitution, both in production and consumption. It has created further incentives for the promotion and purchase of other, often stronger, forms of alcohol.
The Alcopop Tax Failure mobile billboard campaign will commence in Canberra on Sunday, 1 February 2009
“The premise for the tax and its effectiveness is shrouded in misinformation and dishonesty. It is simply not true that RTDs have exacerbated risky and high-risk drinking among young Australians. Nor has it reduced levels of binge-drinking across any group in the community. This was never anything more than a tax grab masquerading as health policy.
“Now the Government won’t even provide the facts on the revenues raised, the levels of substitution and the impact on alcohol consumption. What are they hiding?” Mr Riden asks.
“The Government has not put forward any data that alcohol-related hospital admissions have reduced.
“Australians know the RTD tax hike is a failure. The time has come to vote it down. We need to ensure Australia is not left with a legacy of flawed policy and missed opportunities,” he said.
Media Contact Details:. Stephen Riden, DSICA - 0408 372 496 or John Morton, Ethical Strategies - 0416 184 044
Galaxy Poll finds 8 out of 10 Australians think RTD tax has failed the test
100-day countdown to scrap the tax begins
An overwhelming majority of Australians believe that the Federal Government’s 70 per cent tax hike on Ready-To-Drink (RTD) alcohol products has failed to reduce binge drinking among young people and should be scrapped.
A new national survey, conducted by Galaxy Research, found 78 per cent of respondents believe that nine months after its contentious introduction the RTD tax trial has been ineffective in solving binge drinking among young people, with almost half of those polled rating the tax hike as ‘very ineffective’.
The survey also revealed 77 per cent of respondents believe the Australian Senate should vote down the RTD tax hike – even after respondents were told how much revenue the tax would generate for the Government during the Global Financial Crisis.
Only 7 per cent of Australians ‘strongly disagree’ with abandoning the tax.
“Australians have been forced to endure the unintended consequences of this poorly conceived tax grab over the past nine months. They know it has failed and they want it scrapped,” said Mr Stephen Riden, Information and Research Manager for DSICA.
“Australians want a real solution to problem drinking, not a tax slug that effectively encourages the purchase of cheaper and often stronger forms of alcohol,” he said.
These results come as DSICA highlights the 100-day countdown to the deadline (27 April 2009) for enabling legislation to be passed by the Senate. The Australian Parliament has to date been denied the opportunity to debate and vote on supporting legislation for the tax increase.
“The Senate is the last place where this flawed tax can be put to rest. Time is fast running out to ensure Australia is not left with a legacy of bad policy and missed opportunities.”
The Galaxy Research survey was carried out between 16-18 January 2009. The statistically significant sample of 1,058 respondents aged 18 years or over was weighted to reflect the latest ABS population statistics.
The survey was commissioned by DSICA, and the complete results are available on request.
Media Contact Details:. Stephen Riden, DSICA - 0408 372 496 or Rebecca Anable, Ethical Strategies - 0404 019 323
More evidence that RTD tax trial has failed - and will continue to fail
A new survey has again confirmed that the Government's RTD tax trial will fail, with claims that consumers continue to move towards cheaper alcohol products.
The national survey of 1,300 retail liquor employees, commissioned by The Bailey Group, found tighter household budgets have not reduced consumers' alcohol consumption, but only changed their beverage of choice.
Dr Mike MacAvoy, chief executive of DrinkWise, the organisation devoted to reducing alcohol misuse, responded to The Bailey Group survey by saying that people typically shifted their expenditure in order to accommodate alcohol in their budgets.
Steve Wootten, of The Bailey Group, a sales and marketing company, told News.com.au that the results revealed Australians were drinking more alcohol.
"Well over half of those surveyed (61 per cent) believed alcohol consumption had increased in recent times, while only 14 per cent believed that consumption had dropped due to tougher times", he said.
The findings of the Bailey survey are consistent with previous research results including;
- Research conducted by Galaxy Research in April 2008 that found only 3% of Australians believe that increasing tax is the most effective way to address excessive alcohol consumption among young people.
- A survey, by research firm EMRS, of 480 liquor retailers that found that 90% believe their customers consider the tax to be an unwarranted tax grab and 81% of their customers have an unfavourable view of the RTD tax increase.
- A poll conducted by Galaxy Research that found 81% of Australians agreed the RTD tax trial should be abandoned in favour of a more comprehensive strategy to tackle bingedrinking. The survey also found that 77% of the population believe the RTD tax increase is ineffective in addressing binge drinking in young people.
DSICA's Information and Research Manager Mr Stephen Riden said: "The research into consumer behaviour continues to confirm that a narrow tax on one range of alcohol products does nothing to provide a solution to the issue of problem drinking in the Australian community. The RTD tax trial has exposed the fact that consumers will substitute to other cheaper, often stronger, alcohol products."
Media Contact Details:. Stephen Riden, DSICA - 0408 372 496 or Glenn Taylor, Ethical Strategies - 0449 634 920
Rebuttal of the 'Avoidable Costs of Alcohol Abuse' Report
Contrary to claims by advocates of the ‘alco-pop tax’ and the Minister for Health, a report into the avoidable costs of alcohol abuse in Australia actually confirms what most Australians already know – the RTD tax trial cannot work because it assumes that people will not move to other alcohol products if taxes are raised on one product.
The report “The avoidable costs of alcohol abuse in Australia and the potential benefits of effective policies to reduce the social costs of alcohol” correctly identifies that young people are influenced by the price of alcohol.
The report’s authors, David Collins and Helen Lapsley, concede that for changes in tax policy to achieve the sorts of results the authors would like to see, they would require up-to-date research on product substitution - and admit that there is little or no recent Australian research in this area.
The authors also twice warn that, ‘interpretation of the results should be undertaken with great care’.
This adds weight to the body of evidence that young Australians looking to maximise their ‘bang for buck’ are being driven to other forms of alcohol by the 70 per cent tax hike on pre-mixed drinks.
The alcohol industry has already seen a very sharp increase in sales of bottled spirits, and there has also been growth in beer sales. A nationwide survey of 480 bottle store owners and managers found that nearly 90 percent believe that the tax increase has been a failure.
When announcing its tax hike, the Government relied on Treasury modelling that assumed cross-price elasticity [the degree of substitution] estimates for RTDs to be zero.
Leading Australian drug & alcohol workers, whose editorial was published this month in leading British medical journal The Lancet, state that the RTD tax trial is ‘unlikely to substantially reduce overall rates of usual or binge consumption.’
In addition, the Government’s own advisor on health and welfare statistics, the Australian Institute of Health and Welfare (AIHW), has already stated that ‘the increased availability of RTDs does not appear to have directly contributed to an increase in risky alcohol consumption.’
In short - the additional tax on RTDs is a blatant tax grab that appears to have been ‘concocted overnight’ and with no appreciation of effective, evidence-based health policy or of the unintended social consequences it would cause.
Media Contact Details:. Stephen Riden, DSICA - 0408 372 496 or John Morton, Ethical Strategies - 0416 184 044
RTD tax trial 'a failure': Liquor retailers survey
The Federal Government's 70 per cent tax hike on RTDs has failed to reduce the amount of alcohol consumed by bottle shop customers across Australia, according to a survey of 480 liquor retailers.
Despite claims the tax increase on ready-to-drink (RTD) alcohol products was designed to reduce binge-drinking, only 4% of liquor retailers believe the tax trial introduced in April this year had led to a reduction in the level of alcohol consumed by their customers.
The survey, conducted on behalf of the Distilled Spirits Industry Council of Australia (DSICA), found the vast majority of bottle shop operators believe their customers oppose the RTD tax increase which they regard as a 'tax grab' that has failed to address binge-drinking.
"This is the first poll to gauge the reaction of Australians to this supposed health measure," said Mr Stephen Riden, Information and Research Manager for the Distilled Spirits Industry Council of Australia (DSICA).
The survey revealed strong opposition to the RTD tax hike from liquor retailers, most notably that:
- 88% believe the tax has failed to reduce alcohol consumption and 87% believe it will continue to be a failure in the long term;
- 80% report the majority of RTD drinkers are now buying other forms of alcohol (often more potent varieties) as a result of the tax;
- 90% believe the majority of their customers consider the tax to be an unwarranted tax grab; and 81% of their customers have an unfavourable view of the RTD tax increase.
The survey also asked retailers to describe what they would like to say to the Federal Government about the RTD tax hike. Commonly expressed messages related to: The tax will not stop youth / binge-drinking; The tax increase is unfair and just a tax grab; and We need to tackle binge drinking in different ways.
Stephen Riden, Information and Research Manager for DSICA, called on the Federal Government to listen to the people on the front-line. "It's the liquor retailers, security guards, accident and emergency staff and police officers who are dealing with the fall-out from a policy that encourages the purchase of more and stronger alcohol products," he said.
Mr Riden noted that liquor retailers are concerned about the responsible sale and consumption of alcohol and support the fact that RTDs contain a measured and known quantity of alcohol in each can or bottle.
The research was conducted by independent research company EMRS amongst randomly selected liquor store owners and operators in Queensland, Victoria, NSW, South Australia, Western Australia, Tasmania and the Northern Territory. A full research report and overview of the research methodology is available as a pdf doument, which can be downloaded here.
Media Contact Details:. Stephen Riden, DSICA - 0408 372 496 or John Morton, Ethical Strategies - 0416 184 044
Australian public has made up its mind on Alcopop tax
Four-out-of-five Australians believe the Federal Government should scrap its tax hike on Ready-to-Drink (RTD) alcohol products, according to a national survey conducted by Galaxy Research.
Undertaken last weekend, the study found 81% of respondents agreed the RTD tax trial should be abandoned in favour of a more comprehensive strategy to tackle binge-drinking among young Australians. While 58% of respondents "strongly agree" with the scrapping of the tax, only 7% of Australians "strongly disagree" with such a move.
The survey also found that more than three-quarters (77%) of the population believe the RTD tax increase is ineffective in addressing binge drinking in young people. More than half of those polled (53%) rate the RTD tax trial as "very ineffective".
"This is the first poll to gauge the reaction of Australians to this supposed health measure," said Mr Stephen Riden, Information and Research Manager for the Distilled Spirits Industry Council of Australia (DSICA).
"Only 3% of the respondents said they did not know if the tax had been effective or not, and only 4% of respondents said they did not know whether the tax should be scrapped or not, so this survey shows that the public has made up its mind on this ill-conceived tax grab," he said.
The Galaxy Research survey was carried out on 25 to 27 July. The statistically significant national sample of 1,042 respondents aged 18 years or over was weighted to reflect the latest ABS population statistics. The survey was commissioned by DSICA.
Media Contact Details:. Stephen Riden, DSICA - 0408 372 496 or John Morton, Ethical Strategies - 0416 184 044
