Burst alchopop tax leaks back to the community

The Australian Hotels Association of NSW is supporting the move by distillers to donate refunded revenue from the rejected alcopop tax to alcohol awareness and research organization, DrinkWise.

“The $300 million, which has essentially been paid by the community, should go back into the community and is best spent on education initiatives,” said AHA (NSW) CEO Sally Fielke.

Approximately $300 million dollars accrued from the trial tax hike on ready-to-drink alcoholic beverages has had to be refunded to the spirits industry, following Federal Parliament’s rejection of the tax in late March.

According to the Distilled Spirits Industry Council of Australia, donating the money to DrinkWise is the responsible course of action as a refund to consumers would be logistically impossible.

“Drinkwise is an established organization that is already starting to make a difference through its social change program, ‘Kids Absorb Your Drinking’,” said DSICA spokesperson, Stephen Riden.

The non-profit, government funded organization is focused on alcohol research and bringing about change within Australia’s drinking culture.

The ‘Kids Absorb Your Drinking’ television campaign, which targets parents and their influence on children’s drinking habits, has already produced positive results according to DrinkWise CEO Chris Watters.

“We have some substantial tracking and evaluation of that program that has just been released, indicating very high levels of cut through and take-up by the community, in particular the way in which the program is non-threatening and delivers a message about setting an example and being a role model for our children,” he said.

DSICA has committed to donating the refund to DrinkWise but Mr Riden says the amount does not represent the whole $290 million.

“There will be some substantial loss of the $290 million that will be paid back to the industry because some of it will go to wholesalers and distributors, and we’ve heard nothing from them about what they intend to do with the money,” he said.

“It will be a very substantial sum that goes through but a long way short of [290 million], say half of the 290 million.”

Mr Watters welcomes the donation but says groups receiving the remainder of the $290 million should follow DSICA’s example and give the money to alcohol abuse initiatives.

“I’m prepared to say, it’s my firm belief that the funding which ultimately is a tax refund or rebate should all go to alcohol education and community awareness and that means if the funding is not directed at DrinkWise, then it should go to some other suitable agency or service provider involving alcohol reform in the community,” he said.