Alcohol industry and governmental revenue from young Australians
Ian W. Li A B and Jiawei Si AA The University of Western Australia, M431, 35 Stirling Highway, Crawley, WA 6009, Australia. Email: Jiawei.si@uwa.edu.au
B Corresponding author. Email: ian.li@uwa.edu.au
Australian Health Review 40(5) 519-525 https://doi.org/10.1071/AH15146
Submitted: 7 August 2015 Accepted: 31 October 2015 Published: 18 December 2015
Journal Compilation © AHHA 2016
Abstract
Objective The aim of the present study was to estimate the revenues collected by government and industry from alcohol consumption by young Australians in 2010.
Methods Statistical analyses were performed on data from the Australian National Drug Strategy Household Survey 2010 and alcohol data collected from an online retailer to calculate the proportion, frequency, quantity and revenues from alcohol consumption by young Australians.
Results One-third of adolescents (12–17 years old) and 85% of young adults (18–25 years old) consume alcohol. More than half the adolescents’ alcohol consumption is from ready-to-drink spirits. Revenue generated from alcohol consumption by 12–25 year olds is estimated at $4.8 billion in 2010 (2014 Australian dollars): $2.8 billion to industry (sales) and $2.0 billion to government (taxes).
Conclusions Alcohol consumption by young Australians is prevalent, and young Australian drinkers consume alcohol in substantial amounts. The industry and taxation revenue from young drinkers is also considerable. It would be in the public interest to divert some of this revenue towards health initiatives to reduce drinking by young people, especially given the high societal costs of alcohol consumption.
What is known about the topic? Australian adolescents aged 12–17 years consume substantial amounts of alcohol, and substantial amounts of revenue are generated from alcohol sales to them.
What does this paper add? This paper provides recent estimates of alcohol consumption and revenue generated by Australian adolescents, and extends estimates to young adults aged 18–25 years.
What are the implications for practitioners? A substantial proportion of Australian young people consume alcohol. The sales and taxation revenue generated from young people’s drinking is substantial at A$4.8 billion in 2010 and is higher in real terms than estimates from previous studies. Some of the alcohol taxation revenue could be diverted to health promotion and education for young people, because the costs of alcohol consumption in terms of health outcomes and productivity losses for these age groups are expected to be especially high.
Additional keywords: adolescents, alcohol consumption, policy, taxation, young people.
References
[1] McGovern P. Uncorking the past: the quest for wine, beer and other alcoholic beverages. Berkley: University of California Press; 2009.[2] Gao C, Ogeil RP, Lloyd B. Alcohol’s burden of disease in Australia. Canberra: FARE and VicHealth in collaboration with Turning Point; 2014. Available at: http://www.fare.org.au/2014/07/alcohols-burden-of-disease/ [verified 2 October 2015].
[3] Begg S, Vos T, Barker B, Stevenson C, Stanley L, Lopez A. The burden of disease and injury in Australia 2003. Canberra: Australian Institute of Health and Welfare; 2007.
[4] Rehm J, Mathers C, Popova S, Thavorncharoensap M, Teerawattananon Y, Patra J. Global burden of disease and injury and economic costs attributable to alcohol use and alcohol-use disorders. Lancet 2009; 373 2223–33.
| Global burden of disease and injury and economic costs attributable to alcohol use and alcohol-use disorders.Crossref | GoogleScholarGoogle Scholar | 19560604PubMed |
[5] Bava S, Tapert SF. Adolescent brain development and the risk for alcohol and other drug problems. Neuropsychol Rev 2010; 20 398–413.
| Adolescent brain development and the risk for alcohol and other drug problems.Crossref | GoogleScholarGoogle Scholar | 20953990PubMed |
[6] National Preventative Health Taskforce. Preventing alcohol related harm in Australia: A window of opportunity. Canberra: Department of Health and Ageing; 2009. Available at: http://www.health.gov.au/internet/preventativehealth/publishing.nsf/Content/tech-alcohol [verified 6 August 2015].
[7] Chikritzhs T, Catalano P, Stockwell T, Donath S, Ngo H, Young D, Matthews S. Australian alcohol indicators, 1990–2001: patterns of alcohol use and related harms for Australian states and territories. Perth: National Drug Research Institute and Turning Point Alcohol and Drug Centre Inc; 2003.
[8] Paschall MJ, Grube JW, Kypri K. Alcohol control policies and alcohol consumption by youth: a multi-national study. Addiction 2009; 104 1849–55.
| Alcohol control policies and alcohol consumption by youth: a multi-national study.Crossref | GoogleScholarGoogle Scholar | 19832785PubMed |
[9] Doran CM, Shakeshaft AP, Hall W, Petrie D. Alcohol industry and government revenue derived from underage drinking by Australian adolescents 2005. Addict Behav 2009; 34 75–81.
| Alcohol industry and government revenue derived from underage drinking by Australian adolescents 2005.Crossref | GoogleScholarGoogle Scholar | 18947935PubMed |
[10] Doran CM, Gascoigne MB, Shakeshaft AP, Petrie D. The consumption of alcohol by Australian adolescents: a comparison of revenue and expenditure. Addict Behav 2006; 31 1919–28.
| The consumption of alcohol by Australian adolescents: a comparison of revenue and expenditure.Crossref | GoogleScholarGoogle Scholar | 16580151PubMed |
[11] Doran CM, Byrnes JM, Coblac LJ, Vandenberg B, Vos T. Estimated impacts of alternative Australian alcohol taxation structures on consumption, public health and government revenues. Med J Aust 2013; 199 619–22.
| Estimated impacts of alternative Australian alcohol taxation structures on consumption, public health and government revenues.Crossref | GoogleScholarGoogle Scholar | 24182229PubMed |
[12] Sharma A, Vandenberg B, Hollingsworth B. Which policy will reduce heavy consumption without adversely affecting light and moderate consumers? PLoS One 2014; 9 e80936
| Which policy will reduce heavy consumption without adversely affecting light and moderate consumers?Crossref | GoogleScholarGoogle Scholar | 24465368PubMed |
[13] Booth A, Meier P, Stockwell T, Sutton A, Wilkinson A, Wong R, Brennan A, O’Reily D, Purshouse R, Taylor KB. Independent review of the effects of alcohol pricing and promotion. Part A: systematic reviews. Sheffield: School of Health and Related Research, University of Sheffield; 2008.
[14] Craig DG, Dakkak M, Gilmore IT, Hawkey CJ, Rhodes JM, Sheron N, British Society of Gastroenterology A drunk and disorderly country: a nationwide cross-sectional survey of alcohol use and misuse in Great Britain. Frontline Gastroenterol 2012; 3 57–63.
| A drunk and disorderly country: a nationwide cross-sectional survey of alcohol use and misuse in Great Britain.Crossref | GoogleScholarGoogle Scholar |
[15] MackAskill S, Cooke E, Eadie D, Hastings G. Perceptions of factors that promote and protect against the misuse of alcohol amongst young people and young adults. Glasgow: Centre for Social Marketing, University of Strathclyde; 2001.
[16] Australian Institute of Health and Welfare (AIHW). 2010 national drug strategy household survey. Drug Statistics Series 25. Canberra: AIHW; 2011.
[17] World Health Organization (WHO). International guide for monitoring alcohol consumption and related harm. Geneva: WHO; 2000.
[18] Rehm J, Greenfield TK, Walsh G, Xie X, Robson L, Single E. Assessment methods for alcohol consumption, prevalence of high risk drinking and harm: a sensitivity analysis. Int J Epidemiol 1999; 28 219–24.
| Assessment methods for alcohol consumption, prevalence of high risk drinking and harm: a sensitivity analysis.Crossref | GoogleScholarGoogle Scholar | 1:STN:280:DyaK1M3nt1Wisg%3D%3D&md5=6aed5678ad62d0990f8b1ce7a8d7cefdCAS | 10342682PubMed |
[19] Greenfield TK, Kerr WC, Bond J, Ye Y, Stockwell T. Graduated frequencies alcohol measures for monitoring consumption patterns: results from an Australian national survey and a US diary validity study. Contemp Drug Probl 2009; 36 75056015
| 21197381PubMed |
[20] Australia Bureau of Statistics (ABS). Australian demographic statistics, December 2013. Catalogue No. 3101.0. Canberra: ABS; 2014.
[21] Australian Taxation Office (ATO). Excise tariff working pages. Canberra: ATO; 2014. Available at: http://law.ato.gov.au/atolaw/view.htm?Docid=PAC/BL030002/1&PiT=99991231235958 [verified 6 August 2015].
[22] National Health and Medical Research Council (NHMRC). Young people and alcohol. Canberra: NHMRC; 2013. Available at: http://www.druginfo.adf.org.au/fact-sheets/young-people-and-alcohol-web-fact-sheet [verified 6 August 2015].
[23] Australian Institute of Health and Welfare (AIHW). Health expenditure Australia 2013–14. Health and Welfare Expenditure Series no. 54. Catalogue no. HWE 63. Canberra: AIHW; 2015.
[24] National Alliance for Action on Alcohol. Alcohol pricing and taxation. ACT: National Alliance for Action on Alcohol; 2015. Available at: http://www.actiononalcohol.org.au/our-work/position-statements/alcohol-pricing-and-taxation [verified 2 October 2015].
[25] Skov SJ, Chikritzhs TN, Kypri K, Miller PG, Hall WD, Daube MM, Moodie AR. Is the ‘alcopops’ tax working? Probably yes but there is a bigger picture. Med J Aust 2011; 195 84–6.
| 21770879PubMed |
[26] McCusker Centre for Action on Alcohol and Youth. National survey, July 2015. Perth: McCusker Centre for Action on Alcohol and Youth; 2015. Available at: http://mcaay.org.au/publications.aspx [verified 2 October 2015]
[27] National Preventative Health Taskforce. Australia: the healthiest country by 2020: national preventative health strategy: the roadmap for action. Canberra: Preventative Health Taskforce; 2009. Available at: http://www.health.gov.au/internet/preventativehealth/publishing.nsf/Content/nphs-roadmap-toc [verified 2 October 2015]
[28] Producer Commitments. Reducing harmful use of alcohol: beer, wine and spirits producers’ commitments. 2014. Available at: http://www.producerscommitments.org/wp-content/uploads/2015/09/2014-Progress-Report-Interactive.pdf [verified 2 October 2015]
[29] Miller PG, de Groot F, McKenzie S, Droste N. Vested interests in addiction research and policy. Alcohol industry use of social aspect public relations organizations against preventative health measures. Addiction 2011; 106 1560–7.
| Vested interests in addiction research and policy. Alcohol industry use of social aspect public relations organizations against preventative health measures.Crossref | GoogleScholarGoogle Scholar | 21781203PubMed |
[30] Pettigrew S, Daube M, Biagioni N. (Ir)responsible drinking campaigns. Med J Aust 2014; 200 577–81.
| (Ir)responsible drinking campaigns.Crossref | GoogleScholarGoogle Scholar | 24882481PubMed |
[31] Collins D, Lapsley H. The avoidable costs of alcohol abuse in Australia and the potential benefits of effective policies to reduce the social costs of alcohol. Canberra: The Australian Government Department of Health and Ageing; 2008.
[32] Manning M, Smith C, Mazerolle P. The societal costs of alcohol misuse in Australia. Trends & issues in crime and criminal justice no. 454. Canberra: Australian Institute of Criminology; 2013.
[33] Heeb JL, Gmel G. Measuring alcohol consumption: A comparison of graduated frequency, quantity frequency, and weekly recall diary methods in a general population survey. Addict Behav 2005; 30 403–13.
| Measuring alcohol consumption: A comparison of graduated frequency, quantity frequency, and weekly recall diary methods in a general population survey.Crossref | GoogleScholarGoogle Scholar | 15718058PubMed |
[34] Kollmorgen A. Bottleshop prices. Choice, 11 September 2014. Available at: https://www.choice.com.au/shopping/everyday-shopping/supermarkets/articles/ bottleshop-prices [verified 6 August 2015].
