Senate passes RTD Tax

By Andrew Starke

The Government's 70 percent tax increase on RTDs has passed the Senate on its second attempt.

The law was passed with the support of the Liberals but the Nationals refused to support it. The Greens also supported the tax being made permanent.

The tax was first introduced in April last year to improve public health and cut young peoples' alcohol consumption.

However, reports analysing the performance of the RTD sector over the past year have cast doubt over the effectiveness of the tax in achieving these measures.

The legislation to keep the tax as an ongoing measure was first defeated in March after Family First Senator Steve Fielding sided with the Opposition to defeat the motion, with 32 votes against beating the 31 in favour.

The tax rise increases the cost of pre-mixed drinks from $39 to $66 a litre.