Australians are facing a double hip-pocket hit, with petrol prices rising and the cost of alcohol set to increase from Monday.

The federal government is imposing its 79th alcohol tax increase in 40 years, meaning consumers will pay more for spirits and packaged beer.

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“I think bootlegging’s going to have a nice new golden age,” one consumer said.

Australian brewers and distillers now pay the third highest tax rate in the world.

“Our tax on Monday for Australian spirits goes up from nearly $108 a litre to just over $110 a litre,” Kylie Lethbridge from the Australian Distillers Association said.

The tax impacts beer and spirits. Credit: 7NEWS

Guy Greenstone from Stomping Ground Brewing Co. said the increases make it tough for small businesses.

“For small businesses like us, if we choose not to pass it on, then our margin just gets eroded,” he said.

Small distillers like Starward will be hit hard. From Monday, they’ll pour an extra $112,000 into government coffers, on top of the $6 million they already pay in tax.

Small distillers like Starward will be hit hard. Credit: 7NEWS

Consumers are noticing the impact. “Drinking less, that’s what I’ve noticed a lot from my friends,” one person said.

However, not everyone is complaining.

“There’s absolutely no doubt that increasing the excise helps reduce public health problems.,” said Nicole Lee, CEO of Hello Sunday Morning.

Beer on tap has a reprieve from the biannual hikes, and wine is not affected as it’s taxed differently.