On a $50 bottle of spirits in Australia, $35.39 goes to tax. That is 71 cents in every dollar, made up of excise at $110.15 per litre of alcohol plus GST on top. Want the figure for a bottle of your own? Our free spirits tax calculator works it out from the price, size and strength.
Key takeaways
- Spirits excise is $110.15 per litre of pure alcohol from 3 August 2026, and rises every February and August.
- A standard 700 ml bottle at 40% carries $30.84 of excise before GST.
- GST is charged on the price including excise, so you pay tax on the tax.
- Because excise is a flat amount, cheap bottles are taxed hardest: 78% of a $45 bottle, 35% of a $120 bottle.
How spirits tax works in Australia
Every bottle of spirits carries two taxes. The first is excise, a flat charge on the pure alcohol in the bottle. It doesn't care what the bottle costs, only how big it is and how strong. The second is GST at 10%, which is charged on the full shelf price, excise included.
To work out the excise, multiply the bottle size in litres by its strength, then by the rate. A 700 ml bottle at 40% holds 0.28 litres of pure alcohol. At $110.15 a litre, that is $30.84 of excise. GST is one eleventh of the shelf price, so on a $50 bottle it adds $4.55.
You can run these numbers for any bottle in the calculator.
What the tax adds to common bottles
These are illustrative shelf prices. Strength matters as much as price: a navy-strength gin carries far more excise than a cream liqueur of the same size.
| Bottle | Shelf price | Excise | GST | Total tax | Tax share |
|---|---|---|---|---|---|
| Vodka, 700 ml, 37% | $45 | $28.53 | $4.09 | $32.62 | 72% |
| Vodka, 1 litre, 37% | $65 | $40.76 | $5.91 | $46.66 | 72% |
| Gin, 700 ml, 40% | $60 | $30.84 | $5.45 | $36.30 | 60% |
| Whisky, 700 ml, 40% | $90 | $30.84 | $8.18 | $39.02 | 43% |
| Navy-strength gin, 700 ml, 57% | $75 | $43.95 | $6.82 | $50.77 | 68% |
| Cream liqueur, 700 ml, 17% | $42 | $13.11 | $3.82 | $16.93 | 40% |
Liqueurs are taxed at the same rate per litre of alcohol as spirits. They just contain less alcohol, which is why a cream liqueur's tax share is much lower. Brandy has its own, slightly lower rate of $102.87.
Why the rate keeps going up
Spirits excise is indexed to inflation twice a year, in February and August, so it rises automatically without a vote in Parliament. It was $66.67 per litre of alcohol in April 2008 and is $110.15 today, a 65% rise. Draught beer excise has been frozen since August 2025, but spirits were left out of that freeze.
The next rise lands in early February 2027, once the December quarter inflation figures are released. We update the spirits tax calculator each time the ATO publishes a new rate.
How Australia compares
Australia's spirits excise is among the highest in the developed world. Spirits & Cocktails Australia describes it as the highest outside Scandinavia. Converted to Australian dollars at early 2026 rates, the United Kingdom charged about $64 per litre of alcohol and the United States about $13.50, against Australia's $107.99 at the time. Only Iceland and Norway charged more among the OECD countries compared.
FAQ
How much tax is on a 700 ml bottle of spirits?
At 40% alcohol, $30.84 of excise plus GST of one eleventh of the price. On a $50 bottle that is $35.39 in total.
Is GST charged on top of excise?
Yes. GST applies to the full price, and that price already includes excise.
When does spirits excise go up next?
In early February 2027, then again in August 2027.
Does making spirits at home avoid excise?
No. Owning and using a still is legal in Australia. Stills of 5 litres or under need nothing, and stills over 5 litres need a free still permission from the ATO. Distilling water and essential oils needs no licence. Making spirit needs a free excise manufacturer licence, and excise is payable on spirit you make. Our guide on whether it's legal to distil alcohol in Australia has the detail.
Check any bottle
Enter a price, bottle size and strength in our spirits tax calculator to see exactly how much of it is excise and GST.
Sources: excise rates from the ATO; historical rates from the Australian Border Force and the Parliamentary Budget Office; international comparison from Headlands Distilling Co. (OECD rates, February 2026). Updated 29 September 2026.
