New alliance pushes for higher wine taxes

A new health alliance wants to force the Federal Government to end sales of cheap wine, by raising taxes.

The National Alliance for Alcohol Action is planning unprecedented lobbying for changes to alcohol tax in the lead-up to this year's election.

The Winemakers Federation is warning 12,000 jobs will be lost and 30,000 hectares of vines removed if the Federal Government ends the industry's tax breaks.

Changing wine taxation to a system based on alcohol content, known as a volumetric tax, is widely believed to be under consideration by the Rudd Government as it looks to overhaul the entire tax system.

Although the details recommended in the Henry Tax Review are yet to be publicly released, the Winemakers Federation made a plea for the status quo in its recent Budget submission.

"It is clear that wine, even in its cheapest form, is not a major determinant of risky drinking (especially amongst young people)," it said.

"Yet a taxation change to try to address these issues would result in a major upheaval for the sector for no great change in consumer behaviour."

But Professor Mike Daube, from the National Alliance, says health experts want the concessions scrapped.

"So what has happened is, for the first time, quite a large number of health and related organisations and those concerned about alcohol and drug problems have got together and said, 'we're going to have a national alliance for action, we're going to be calling for action that we think is appropriate and necessary and we're going to inviting any organisations that are not related to the drinks industry to join us in this'," he says.

"The overall cost (of alcohol abuse) to the community is estimated at over $15 billion a year.

"Why is it that we should have to look after the interests of just the wine industry in the face of that kind of problem?"