The federal government today confirmed a harsh new reality for spirits producers across the country, with spirits excise set to top $100.05 per litre of alcohol from 1 August.

Spirits and Cocktails Australia chief executive, Greg Holland, slammed the increase.

“It’s outrageous to think that Australia’s spirits tax – which is already the third highest in the world – will exceed $100 per litre of alcohol next month,” he said.

“A gin and tonic now has more than double the tax of a Great Northern.”

“When will enough be enough?”

Australian Distillers Association chief executive, Paul McLeay, said the tax on spirits is unfair and unsustainable, putting a handbrake on the growth of a promising industry.

“It’s impossible for local distillers to consider employing new staff, opening a distillery door or accessing new export markets with this out of control tax,” he said.

“If the government is serious about growing domestic manufacturing jobs, particularly in the regions, they can’t have it both ways.”

Cape Byron Distillery founder Eddie Brook says small distilleries cannot realistically pass on every increase to consumers, who don’t understand the excise burden these businesses are dealing with.

“If we asked our loyal customers to pay an extra $2 or $3 every six months, we would start to look greedy in their eyes, and it puts us out of the price range that they can afford,” he said.

“What that means is, we've had to absorb a lot of those increases, which has made the running costs extremely tight and essentially, it is has reduced the ability of the business to grow.

Brook said the latest forecast excise increase will cost his business about $70,000 a year in lost margin.

“That’s the equivalent of a full-time staff member that we won’t be able to employ as a result,” he said.