Australians well know the pain of checking their bank accounts the morning after a night at the pub \u2013 now a major bank has called out the \u201crelentless\u201d taxes pushing up costs.<\/p>\n
The nation\u2019s two biggest cities are the most expensive in the world to buy beers and ciggies, with prices in Melbourne rising almost 90 per cent over the past decade.<\/p>\n
That\u2019s according to Deutsche Bank\u2019s annual cost of living indexes, which rank 69 global cities on their affordability across housing, transport, salaries, quality of life, dining and shopping.<\/p>\n
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Among its analysis is what the bank calls the \u201cOasis index\u201d, comparing the cost of five beers and two packs of cigarettes across the world\u2019s most famous cities.<\/p>\n
Melbourne held the unfancied honour of leading the 2026 rankings at $US111.20 \u2013 or almost $159 \u2013 pushing Sydney back to second spot at $US109.50, or $156.30.<\/p>\n
Prices for five 500ml beers and two 20-packs of Marlboros in both cities was now more than double than in New York City, the report found.<\/p>\n
Deutsche Bank\u2019s report, published on Monday, noted the results represented a \u201ccontinuing (of) Australia\u2019s relentless application of sin taxes\u201d.<\/p>\n
\u201cOver a decade, Melbourne\u2019s Oasis index has risen +89 per cent,\u201d it said. <\/p>\n
Across the ditch, Auckland and Wellington ranked third and fourth respectively but costs there were well below $US70 ($99.80) for the same haul.<\/p>\n
The data shows Melbourne and Sydney prices have risen by 88.8 per cent and 81.9 per cent respectively over the past 10 years.<\/p>\n
The Victorian capital\u2019s increase has been accelerating faster than the Harbour City\u2019s over the past seven years, rising 8.41 per cent since 2019, versus Sydney\u2019s 63.3 per cent.<\/p>\n
Even the notoriously expensive UK capital London came in at fifth at $US63.90 \u2013 or $91. Birmingham, Edinburgh, Dublin, Oslo and New York closed out the top 10.<\/p>\n
Shanghai ($14.80), Rio de Janeiro ($16.70) and Cairo ($17.27) were the three cheapest cities.<\/p>\n
Sydney and Melbourne have held the top two spots since 2012 and the annual increases in beer and tobacco excises have increased their gap on global counterparts.<\/p>\n
Independent Brewers Association head Sabrina Kunz said the data showed going out in Australia had become \u201ccompletely unaffordable\u201d, with buying a round of beers now out of reach for many people.<\/p>\n
\u201cWe\u2019re increasingly seeing that where people can\u2019t afford to go out, they can\u2019t afford to socialise in these places because they can\u2019t afford to buy a beer or a meal,\u201d she said.<\/p>\n
\u201cAnd I\u2019m not sure that\u2019s the direction we want society to be going in.\u201d<\/p>\n
Australians were paying $20 in taxes for every slab of beer bought, according to the Brewers Association of Australia, with twice-yearly tax hikes on packaged beers.<\/p>\n
The federal government last year announced a freeze on the excise for tap beers until 2027, but industry officials said that would not bring prices down at all.<\/p>\n
In fact beers giants Lion and Asahi announced in March draught beer charges would be going up due to increased costs of labour and goods.<\/p>\n
The amount Australians pay in beer taxes became a political attack line for Senator David Pocock and proponents of a new gas export levy in early 2026. <\/p>\n
Mr Pococok revealed the Treasury reaped about $2.7 billion from the beer excise, more than it did from the Petroleum Resource Rent Tax paid by multinational gas companies.<\/p>\n
Taxes on tobacco products have also been widely criticised as the ballooning cost of cigarettes toward $50 a pack led to the formation of a billion-dollar black market.<\/p>\n
There have been calls to slash the excise due to a significant drop in tax revenue, with smokers buying cheaper illegal cigarettes, and smoking rates spiking for the first time in decades.<\/p>\n
Federal Minister Clare O\u2019Neil this week said the issue was \u201cnot a tax problem, it is an enforcement problem\u201d, in line with the Albanese government\u2019s stance not to touch the excise.<\/p>\n
\u201cOrganisations like the Cancer Council and the Australian Medical Association are saying don\u2019t do this because all you\u2019re going to do is encourage more Australians to smoke and give billions of dollars back to big tobacco companies,\u201d she said.<\/p>\n
Ms Kunz said, however, the taxes on both alcohol and tobacco products had been a \u201cfailure of public policy\u201d in regards to lifestyle and small business.<\/p>\n
\u201cWe\u2019re seeing hospitality businesses close at an alarming rate,\u201d she said.<\/p>\n
\u201cWe\u2019re seeing mental health overtake cancer as the world\u2019s number one health concern, and we\u2019re making it impossible for people in Australia to get together to have a round of beers with their mates.\u201d<\/p>\n