Shifting to volumetric taxation of alcohol - based on how much alcohol a product contains - would be the best way to curb binge drinking, a new study has found.
Bans on advertising would be the second most cost-effective and sustainable measure, followed by raising the legal drinking age to 21, according to the study released today and funded by Alcohol Education and Rehabilitation (AER) Foundation.
Residential treatment and random breath-testing would be the least effective steps, the study found.
Co-authors associate professors Christopher Doran, from the National Drug and Alcohol Research Centre, and Theo Vos from the University of Queensland say volumetric taxation and banning alcohol advertising should be a high priority.
"The results suggest that although random breath-testing is cost-effective ... the same amount of $71 million ... currently spent on testing would, if invested in more cost-effective interventions, achieve over 10 times the amount of health gain," they say.
The study used Australian data and applied the results from a recent World Health Organisation study to an Australian setting.
At present, beer, wine and spirits are taxed at different rates.
Volumetric taxation would see excise calculated on the amount of alcohol in a drink rather than its type.
Health Minister Nicola Roxon has said volumetric taxation is not being considered as a measure to tackle binge drinking.
The government's taxation review, headed by Treasury secretary Ken Henry, is examining alcohol excise, but the government has already controversially hiked taxation of alcopops by 70 per cent.
AER foundation chief executive Daryl Smeaton said volumetric tax would cost only $580,000 to implement but would save $57 million in costs arising from binge drinking.
The health and social consequences of binge drinking costs Australia at least $15.3 billion every year, he said.
"The fact is the alcohol taxation system is broken," Mr Smeaton said.
"We need a fairer system that taxes alcohol as alcohol, rather than having different rates for beer, wine or spirits.
"Volumetric taxation makes sense from an economic, health and community perspective and is a crucial first step that needs to be taken in order to change patterns of alcohol consumption."
Winemakers recently warned a Senate inquiry a volumetric tax would devastate the industry.
It would lead to a drop of 250,000 tonnes less in demand for grapes and 3,500 people losing their jobs, they said.
