The federal government is considering raising the price of wine and full-strength beer under the overhaul of Australia's complex alcohol tax regime. The change is expected to boost the budget bottom line by $2.9 billion over four years.

A review of the tax system headed by Treasury boss Ken Henry is expected to recommend replacing Australia's antiquated and complex alcohol excise regime with a simpler ''volumetric'' system based on alcohol content.

With an aim to address growing social and health impacts of alcohol use and abuse, the taxes would be in accordance with the alcohol content at six key points: 3.5 per cent, 5.0 per cent, 7.0 per cent, 10 per cent, 15 per cent and 22 per cent.

The proposed raised tax rates would lift the price of full-strength beer by 5.0 per cent and wine prices are expected to suffer a 1% rise. However, the heavily taxed spirits would face no increase.

As per a major political stride, such changes could result in a drop in the price of so-called alcopops, which have controversially been singled out by the Federal Government for special tax treatment after being accused for encouraging binge drinking, particularly among young women.

The KPMG estimation cites the price of mid-strength alcopops to fall by about 8.5 per cent.

The new tax regime is fetching huge support from public health experts.