Minimum Unit Price as a key, evidence-based policy for reducing alcohol consumption and harms

Minimum Unit Price (MUP) is a public health policy that sets a minimum price per standard drink of alcohol. The policy is designed to prevent cheap, high-strength alcohol from being sold at very low prices.

With the introduction of a $1.30 MUP in October 2018, the Northern Territory (NT) became one of the first jurisdictions globally to implement this public health policy.  

Evaluation of the policy in the NT showed reductions in alcohol-related harms without negative effects on moderate drinkers, liquor retailers or tourism. However, the policy was repealed on 1 March 2025 following a late 2024 Territory election.

New evidence on the impact of the MUP repeal on alcohol pricing

Research led by the National Drug and Alcohol Research Centre (NDARC) has identified the impact of the repeal on the price of alcohol in the NT capital city, Darwin. The research team analysed data on alcohol price in the NT monthly from October 2024 to March 2025 to assess whether alcohol products reduced in price after the repeal.

The study showed that within the first month after the repeal, 78 wine products and three cider products were priced below the MUP floor price of $1.30 per standard drink. These products accounted for approximately two-thirds of wine sold in containers larger than a typical bottle, including bottles 1L or greater and cask wine.

The findings also showed that price reductions were not only limited to cheap wine and cider, with more expensive products like spirits and beer also becoming cheaper.

Implications of this new evidence

The NT represents the first instance of MUP being repealed globally. Using NT as a case study, this new evidence shows that alcohol prices drop rapidly after the removal of MUP, with many products returning to prices between $1.30 per standard drink.

Continued monitoring of the price of alcohol in the NT is needed, as there are now no pricing measures in place that are specifically designed to reduce heavy drinking. This is particularly important in the NT context, where alcohol consumption and harms are higher than in all other Australian jurisdictions.