Spirits are free of excise duty if they are:
These concessional spirits are typically very high strength (around 96% alcohol by volume).
Using spirits for concessional purposes
You can use concessional spirits for approved industrial, manufacturing, scientific, medical, veterinary or educational purposes, such as:
- fortifying Australian wine or grape must
- medicines, including vaccines
- essences and flavours
- printing inks
- sterilising equipment
- preserving specimens.
To use concessional spirits for approved purposes you generally need to apply for a concessional spirit permit.
Certain professionals and institutions can use quantities of concessional spirits for approved purposes without needing a concessional spirit permit:
- health care practitioners
- veterinary practitioners
- medical, government and educational institutions.
Resale of concessional spirits is not an approved use. If you want to resell concessional spirits you must have an excise licence. Alternatively, if you want to supply end users directly from someone else's licensed premises you need our permission.
If a spirit has been made unfit for human consumption (denatured) according to a formula approved by us, and will not be used as fuel in an internal combustion engine, you don't need a permit to buy it.
Methylated spirits is the most common example of a denatured spirit.
Some classes of spirits are free of excise where they are used for concessional purposes or made unfit for human consumption in approved ways.