The Northern Territory has become the first Australian jurisdiction to put a floor price on alcohol, in a bid to curtail its worrying rate of alcohol-related harm.

Key points: The NT Government has passed laws to set a floor price on alcohol

The NT Government has passed laws to set a floor price on alcohol From October all alcohol will cost at least $1.30 per standard drink

From October all alcohol will cost at least $1.30 per standard drink The law is designed to curb problem drinking in the NT

The NT Parliament passed the laws today, which will see alcohol sold for at least $1.30 per standard drink from October 1 this year.

Canada and Scotland are among the few other jurisdictions globally to set a floor price on alcohol, which was one of the key recommendations from a wide-ranging alcohol review released by former NT supreme court justice Trevor Riley.

A floor price is a minimum amount for which alcohol can be sold — for example if the floor price is $1, a bottle of wine with eight standard drinks in it would be sold for $8 or more.

Under the NT's new laws, a standard 750ml bottle of wine with 7.7 standard drinks will be sold for a minimum of $10.

The law will impact the price of cheap wine most significantly, while spirits and beer will mostly be unaffected as they are already more expensive.

Earlier this year, the People's Alcohol Action Coalition said the cheapest alcohol available in Darwin was 30 cents per standard drink.

The revenue generated from the introduction of the floor price will go to retailers, because the policy is not a tax, which could only be introduced by the Federal Government.

'Welcome to the nanny state'

Attorney-General Natasha Fyles said the law was designed to tackle alcohol-related violence, crime and antisocial behaviour.

"It's aimed at getting rid of the cheap $4, $5, $6 bottles of wine … that people consume purely to get intoxicated and cause harm in our community," she said.

By early next year, she said the liquor industry would be required to collect retail sales and wholesale data to provide to the Government.

This would ensure the policy could be evaluated — which the Riley Review called for it to be within three years.

It would also ensure retailers were compliant.

Prior to the laws being passed, Opposition Leader Gary Higgins said he would support the move, but that it should be treated as an "experiment".

"Given the seriousness of the problems we face with alcohol abuse in the Territory, the introduction of a floor price is a worthwhile experiment [and] it should be treated as just that — an experiment," he said.

"If the experiment is shown to have failed, it should either be improved or scrapped altogether."

Independent MLA Robyn Lambley said enforcing a minimum price on alcoholic drinks was the NT Labor Government's attempt at "social control".

"I believe in a minimal government, minimal government intervention," she said.

"I don't believe in social control and this is a great example of a policy, of a government policy that is intended to control all of us and how we drink.

"It's 'welcome to the nanny state', because an introduction to an alcohol floor price will achieve nothing and yet affect every person over the age of 18 years who decides to have a drink and usually most often drink responsibly."

The NT has the highest rate of alcohol consumption per-capita in Australia, the Riley Review stated. ( ABC News: Jano Gibson )

'The broken jaw capital of the world'

People's Alcohol Action Coalition's Dr John Boffa pointed to the fact there was already a voluntary floor price on most alcohol sold in Alice Springs.

He most retailers took super cheap alcohol off shelves entirely, rather than market it at inflated prices.

"Because consumers aren't idiots. They're not going to buy a 2 litre cask of wine that's suddenly worth three times as much," he said.

He disagreed with the idea the floor price would be a windfall for retailers, and believed it would reduce alcohol-related harm.

"The main issue here is the Northern Territory has an alcohol-related death rate three times the national average and an admission rate more than twice the national average," he said.

"This will reduce death, it will reduce assaults, it will reduce child neglect and moderate drinkers will hardly notice that it's even been introduced."

Mahiban Thomas, the chairman for the Royal Australasian College of Surgeons NT regional group, also supported the policy.

"We are the [broken] jaw capital of the world — we have the highest instance of mandible fractures in the Northern Territory," he said.

"And we know that 92 per cent of that is due to in some way to alcohol abuse.

"This [law] is pitched at a level that allows the harm to reduce, but at the same time allow mums and dads to enjoy a glass of wine with dinner."

People's Alcohol Action Coalition's Dr John Boffa said many outlets in Alice Springs had agreed to a voluntary alcohol floor price already. ( ABC News: Jano Gibson )

While Liquor Stores Association NT vice president Russell Willing was supportive of the Government trying to reduce alcohol-related harm, he did not believe implementing a floor price was the answer.

"I think the main issue is that it's going to effect the majority of people who rely on a drink, people who are doing the right thing. This population-wide measure basically effects everyone," he said.

"A couple that are pensioners for instance might have a drink, three or four bottles of wine a week. Well that will cost them potentially an extra $1,000 a year."

Asked how burdensome it will be to bring in new software — which will be used by the Government to ensure retailers are compliant — Mr Russell said he did not yet know, but expected it to cost between $10,000-$12,000.

"I can't see why it will work. I think a floor price is not going to stop problem drinkers," he said.

"That's why we really asked the Government to make sure this is evaluated properly and removed if it doesn't work.

Major recommendations of the Riley review: The NT Liquor Act be rewritten

The NT Liquor Act be rewritten Immediate moratorium on takeaway liquor licences

Immediate moratorium on takeaway liquor licences Reduce grocery stores selling alcohol by phasing out store licences

Reduce grocery stores selling alcohol by phasing out store licences Floor price/volumetric tax on alcohol products designed to reduce availability of cheap alcohol

Floor price/volumetric tax on alcohol products designed to reduce availability of cheap alcohol Shift away from floor-size restrictions for liquor outlets and repeal 400-square-metre restrictions

Shift away from floor-size restrictions for liquor outlets and repeal 400-square-metre restrictions Reinstating an independent Liquor Commission

Reinstating an independent Liquor Commission Legislating to make it an offence for someone to operate a boat or other vessel while over the limit

Legislating to make it an offence for someone to operate a boat or other vessel while over the limit Establish an alcohol research body in the NT

Establish an alcohol research body in the NT Trial a safe spaces program where people can manage their consumption and seek intervention

"We don't just get to the end of it and say 'Right let's put the floor price up even further because it didn't work the first time'."

Further alcohol-related changes to come

The NT Government has committed in principle to supporting almost all of the 220 recommendations put forward in the Riley Review, which stated that 44 per cent of Territorians drank at risky levels once a month, compared to a quarter of people nationally.

In 2004-2005 the social cost of alcohol in the NT was about $642 million, or $4,197 per adult, compared to about $943 per adult nationally.

Among these other commitments was expanding the Banned Drinkers Register from takeaway outlets to late-night venues.

A working group is currently preparing an options paper for the government, with the aim to bring the drink driving limit for boat skippers into line with road users.