This report is to identify the situation of excessive alcohol use, the cost generated by the alcohol consumption and the current policy provided by the Australian government and analyse whether alcopop tax works effective or not. Also, the report will provide recommendation on what the government could do to reduce the alcohol consumption.
Excessive alcohol consumption not only damages personal health, but also causes societal dangers such as car accidents, domestic and public violence crime which contributes to social dysfunction and family separation. Drinking too much alcohol would put people into danger.
Source: Bridle, Miller, King& Christou, 2012
Figure 1: Trend in risk drinking for single occasion alcohol-related harm for students who drank, 1993-2011
The trend of risky drinking, which means at least 5 but no more than 20 standard drinks on any day, for students has still increased (Bridle, Miller, King& Christou, 2012). This shows that this serious binge drinking trend would increase the consumption of alcohol in the long term as the youth are addicted to heavy drinking alcohol.
Source: DrugInfo, 2014
Figure 2: Teens' uses
In the diagram below, it shows that alcohol is the largest proportion (nearly half) of what youth are using. The diagram above demonstrates that alcohol consumption is the biggest problem the government needs to solve to avoid the youth becoming addicted. Although the government could receive $7billion Alcohol-related tax, it also creates $15.3billion costs to the society (Manning, Smith & Mazerolle, 2013). This illustrates that the social cost, low labour productivity and high hospitalisation, is higher than economic benefits even though consuming alcohol can increase government revenue. The Australian government has introduced some strategies to cope with this problem. Liquor licensing laws, restrictions on the sale of alcohol of service to intoxicated people and those...