Alcohol taxation reform will benefit the whole Australian community, according to the benefit cost analysis of alcohol tax reform performed by Foundation for Alcohol Research & Education (FARE).

FARE, along with an Australian economic and financial consultancy Marsden Jacob Associates (MJA) conducted a detailed analysis to find out the effects of alcohol taxation reform on alcohol-related harms, consumer satisfaction, and welfare and government tax revenues.

The results of which were released in a report ‘Bingeing, collateral damage and the benefits and costs of taxing alcohol rationally,’ written by economist Dr John Marsden.

The detailed analysis found that moderate drinkers, who account for around two thirds of the adult population, will be highly benefited with the reform.

Moreover, the hike in prices of the liquors will offset reduced consumption which in turn will bring down the level of harms caused by binge drinking that alone equates to more than $15bn each year for providing increased health care, policing and child protection to affected individuals.

Upon replacing the Wine Equialisation Tax (WET) with volumetric excise set at $29.05 per litre of pure alcohol, the analysis found that the tax reform would benefit the Australian community by $230m per year.

FARE chief executive Michael Thorn said the government can now move toward alcohol taxation reform knowing there is a significant net benefit for the Australian community.

"It makes no sense that the vast majority of Australians continue to pick up the tab and pay the costs of alcohol misuse, when the Government now has all the evidence it needs to introduce simple, effective and economically sound tax reform," Thorn added.