Alcohol Abuse Costs NSW Government More than $1 Billion a Year

A Sponsored research report by the New South Wales Audit Office estimates alcohol abuse costs the NSW government more than $1 Billion a year.

If social costs are included, the cost would be closer to $4 billion per year.

New South Wales Auditor General Peter Achterstraat said the concern is the government does not know the full cost of alcohol abuse as cost information is fragmented.

“It is important for government to have good information on the costs of alcohol abuse so it can respond effectively to the problem,” said Mr Achterstraat. “If costs were increasing, this could be a trigger for a different approach,” he added.

Alcohol abuse can cause a range of physical, emotional and social problems. Government agencies monitor and report incidents of alcohol-related harm. For example, NSW Police monitor the number of alcohol-related assaults and NSW Health monitors the number of alcohol-related admissions.

“The NSW Government should estimate the cost of alcohol abuse (every three years) and publically report the cost – so the government and the public know whether the problem is getting better or worse,” said Mr Achterstraat. “The community also has a right to know this information so it can inform public debate on alcohol abuse and the best ways to combat it,” he added.

“Alcohol abuse poses a significant financial burden to both society and government. As a community we need to count the cost and decide what best to do,” Mr Achterstraat concluded.