On a $50 bottle of vodka, gin or rum, $35.39 is tax. That is 71% of the shelf price. Australia charges excise of $110.15 on every litre of alcohol in a bottle of spirits, from 3 August 2026, and adds GST on top. Use the calculator below to see the tax on any bottle.
How the tax on a bottle works
Two taxes make up the tax on a bottle. Excise is a flat charge per litre of pure alcohol, so it depends on the bottle size and strength, not the price. A 700 ml bottle at 40% holds 0.28 litres of alcohol, which at $110.15 per litre is $30.84 of excise. GST is then charged at 10% on the full price, excise included, which works out to one eleventh of the shelf price.
Tax on a 700 ml bottle at 40%
| Shelf price | Excise | GST | Total tax | Tax share of price |
|---|---|---|---|---|
| $45 | $30.84 | $4.09 | $34.93 | 78% |
| $50 | $30.84 | $4.55 | $35.39 | 71% |
| $60 | $30.84 | $5.45 | $36.30 | 60% |
| $80 | $30.84 | $7.27 | $38.11 | 48% |
| $120 | $30.84 | $10.91 | $41.75 | 35% |
Because excise is the same whatever the bottle costs, cheaper bottles carry the biggest share of tax. On a $45 bottle, only about $10 is left to pay for the spirit, the bottle, freight and the retailer's margin.
How the rate has risen
- January 2000: $38.14 per litre of alcohol
- April 2008: $66.67
- September 2015: $80.41
- February 2024: $101.85
- February 2026: $107.99
- August 2026: $110.15
The rate is indexed to inflation twice a year, in February and August, so it rises automatically. It is up 65% since April 2008. The jump in July 2000 came with the introduction of GST, so comparisons are best made from 2008. Draught beer excise has been frozen since August 2025; spirits excise has not.
FAQ
When does the spirits excise rate change next?
In early February 2027. The new rate is set by the December quarter consumer price index, which the ABS releases in late January. We update this page when the ATO publishes it.
Is GST charged on top of excise?
Yes. GST applies to the full sale price, and that price already includes the excise, so you pay GST on the excise as well.
Is brandy taxed differently?
Slightly. Brandy is taxed at $102.87 per litre of alcohol, compared with $110.15 for other spirits. Choose "Brandy" in the calculator to see the difference.
Does making spirits at home avoid the tax?
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.
Method and sources
Excise = bottle size in litres × ABV × the ATO rate per litre of alcohol. GST = shelf price ÷ 11. Rates from the ATO; historical rates from the Australian Border Force and the Parliamentary Budget Office. Journalists are welcome to use these figures with credit to Distillery King. For media enquiries see our press page.
Last updated 25 September 2026.
