Australia illicit alcohol market reaches $1.23 billion

The Australian Taxation Office (ATO) reports that the illicit alcohol market has grown to an estimated $1.23 billion, representing nearly 14 per cent of the total market. This figure marks a significant increase, having more than doubled since 2015–16.

Industry representatives, including Spirits Council of Australia executive director Steven Fanner, attribute the growth to record-high taxes, tax loopholes, and inadequate regulation. Fanner noted that the current spirits tax of $110.15 per litre of alcohol is among the highest in the world outside of Scandinavia. There are also concerns regarding the exploitation of the Alcohol Manufacturer’s Remissions Scheme (AMR) by entities not engaged in actual distilling.

Political leaders have expressed concern that organized crime networks, previously involved in the illicit tobacco trade, are pivoting toward liquor. Deputy Opposition Leader Jane Hume warned of potential increases in extortion and violence, while Health Minister Mark Butler acknowledged the growing threat and stated the government is keen to address the issue.