Australia faces higher fuel and alcohol taxes, pushing up prices

Australia’s temporary fuel tax relief ends at midnight on 2 August, ending a per‑litre subsidy that had been reduced from 32 cents to 16 cents. Finance Minister Jim Chalmers said the measure will be phased out, and the Australian Competition and Consumer Commission will monitor retail fuel prices to prevent profiteering. The cessation is expected to lift gasoline prices within a week.

At the same time, the federal government is implementing its 79th alcohol excise increase in four decades. Effective Monday, the tax on spirits rises to just over $110 per litre, and packaged beer faces higher rates, making Australia’s brewers and distillers among the world’s highest‑taxed. Small producers such as Starward warn of tighter margins, while health advocates argue the hike could curb consumption. Both tax changes add to household cost pressures across the country.