Northern Territory brings in floor price for alcohol
The Northern Territory has taken a radical step to address alcohol related harm, It’s become the first Australian jurisdiction to put a floor price on alcohol with the NT Parliament passing laws which will see alcohol sold for at least $1.30 per standard drink from October 1 this year.
The measure has been implemented as one of the key recommendations from a wide-ranging alcohol review released by former NT Supreme Court justice Trevor Riley.
Basically a floor price is a minimum amount for which alcohol can be sold. So if for example the floor price is $1, that means a bottle of wine with eight standard drinks in it would be sold for $8 or more.
A standard 750ml bottle of wine with 7.7 standard drinks will be sold for a minimum of $10 under the NT’s new law.
It won’t affect the price of spirits and beer as they are already more expensive. But the big impact will be on cheap wine.
The policy is not a tax, which could only be introduced by the Federal Government so the introduction of the floor price will go to retailers.
Attorney-General Natasha Fyles said by early next year, the liquor industry would have to collect retail sales and wholesale data to provide to the Government.
"It's aimed at getting rid of the cheap $4, $5, $6 bottles of wine … that people consume purely to get intoxicated and cause harm in our community." she told the ABC.
She said getting the industry to collect retail sales and provide wholesale data to the government would ensure the policy could be evaluated.
This is in line with a recommendation from the Riley Review which called for it to be within three years.
Opposition Leader Gary Higgins supported the move, but said it should be treated as an "experiment".
"Given the seriousness of the problems we face with alcohol abuse in the Territory, the introduction of a floor price is a worthwhile experiment [and] it should be treated as just that — an experiment" he said told the ABC.
Leon Gettler, 27th August 2018
