The federal opposition will use its Senate majority to reverse the government's alcopop excise hike, saying the $3.1 billion tax grab will make binge drinking worse.
Last month the Rudd government introduced a regulation that boosted the tax on ready-to-drink (RTD) alcoholic beverages by 70 per cent to bring them into line with unmixed spirits, closing a loophole created when the GST was introduced in 2000.
Opposition Leader Brendan Nelson tonight said the coalition would use its numbers in the upper house to pass a disallowance motion reversing the regulation.
"This is nothing more than a tax binge falsely presented to Australians as a health measure," Dr Nelson told parliament in his budget reply speech.
"We will oppose it."
If the Senate action is taken, the government would have to wait six months before it could reimpose the tax hike, meaning it stands to lose more than $300 million in revenue.
Mr Hockey claims young people will just move to cheaper alcoholic drinks, instead of slowing down, if the government's proposed levy on alcopops goes ahead.
Mr Hockey has accused the government of using the levy as a tax grab when it should be looking to other ways of tackling binge drinking.
"You'd looking at providing incentives for low alcohol pops, not increasing taxes.
"This is going to drive young people to higher alcohol alternatives and that means binge drinking under Mr Rudd's plan could end up being worse than it already is."
The tax-hike has come under increased pressure after it was revealed a Cabinet Minister once branded the move "unfair".
Martin Ferguson made the comment in 2004, however the Government is now defending the increase, saying it will bring down consumption among teens.
Senator Stephen Conroy has told the senate raising the levy on pre-mixed drinks is the right move to make.