Customs and Excise

Senator Murray has played an important role in the portfolios of customs and excise, both as a negotiator and as an advocate for reform.

In the face of opposition from the Australian Labor Party, Senator Murray successfully negotiated amendments with the Government to ensure the passage of the Customs Legislation Amendment and Repeal (International Trade Modernisation) Bill 2001 and related bills. This package of legislation was a major contribution to the modernisation and reform of customs law to address the demands of a modern and competitive trading environment while retaining the ability to target non-compliance.

The legislation had been in development for ten years and is a significant enhancement of Australia's capacity to engage in international trade in a manner which is safe, efficient and productive.

Senator Murray has been a consistent campaigner for reform of the alcohol excise regime as a public health initiative. The introduction of the New Tax System included significant and beneficial reform of alcohol taxation. Senator Murray negotiated the amended passage of large components of this reform with the Government.

Excise taxation incentives for low alcohol beer have produced positive health outcomes. Senator Murray has argued for the extension of this policy to low alcohol ready to drink products (RTDs) and wine. The current excise arrangements are a major disincentive to the development of non-beer low alcohol products that would enhance consumer choice and promote the healthy consumption of alcohol.

Senator Murray is a critic of the value-added Wine Equalisation Tax (WET), pointing out that it has created a low-price cheap-alcohol cask market that is at the centre of alcohol abuse, and it is punishing the premium and small business bottled wine sector.

Senator Murray has campaigned for the volumetric taxation of wine as a means of raising the price of low priced full strength wines such as cask wines (which is desirable from a health policy perspective), and lowering the price of high value wines (which is desirable from an economic perspective). Health experts in the alcohol area all support such an approach:

"From a public health perspective, broader reform of alcohol taxation and excise in Australia offers a significant opportunity to reduce the annual toll of more than 3,200 alcohol related deaths, 400,000 hospital bed-days and an estimated $4.5 billion associated with addressing alcohol related harm.

From a public health perspective, excise and taxation on alcohol should be based on alcohol content and strength of drinks rather than cost of manufacture or the method used to produce the alcohol."
- - Mr David Crosbie, Odyssey House Victoria

Links:

Alcohol: A Healthier Australia

Alcohol Excise: 2002 Minority Report by Senator Murray