Show download pdf controls
  • Excise remissions for excisable alcohol

    Generally, you may be able to claim a remission (waiver) of the excise duty you would have had to pay for your goods, if the situation fits both of the following criteria:

    To claim a remission, you need to apply to us, unless it is an automatic remission. An automatic remission is an excise remission that does not require you to submit an application.

    There are several situations where an automatic remission can occur. One of these is the new Excise remission scheme for manufacturers of alcoholic beverages (Remission scheme) that will apply from 1 July 2021.

    On this page:

    Find out about:

    What excisable goods you can claim a remission for

    You can claim a remission for goods that haven't been delivered into the Australian domestic market because they:

    • become unfit for human consumption
    • are no longer suitable for sale
    • are damaged, lost (for example, during production) or destroyed while underbond.

    If you distil spirits, you can also claim a remission for feints obtained during the distillation process that you will destroy.

    Example 1

    A pallet of underbond pre-mixed vodka and orange product has reached its use-by date and is no longer suitable for sale. The vodka and orange product is still stored in the excise-licensed premises and has not had excise duty paid on it. The distiller applies to us for a remission of duty on the out-of-date goods. After they receive approval from the ATO, the distiller must:

    • destroy the goods
    • keep a record of the destruction.
    End of example

    For excisable goods that become unfit for human consumption after you have paid excise duty on them, you may be able to claim an excise refund.

    Claiming a remission

    To claim a remission, you need to apply to us.

    Next step:

    Remission for feints and permission to destroy them

    To apply for a remission for feints and permission to destroy them, contact us on 1300 137 290.

    If we approve your application:

    • we'll remit your existing excise duty liability
    • you can legally destroy or dispose of the goods.

    If you need to destroy feints on an ongoing basis, you can get continuing approval from us.

    Destroying excisable goods subject to remission

    Generally, off-site destruction of excisable goods requires a movement permission from us. However, if you indicate off-site destruction in your remission application, we will provide permission to move the goods off-site as part of the remission approval.

    You must keep detailed records of the goods you destroy because we may ask to see these records.

    Once a remission has been approved and the goods have been destroyed, you won't have to pay any excise duty on them.

    Automatic remission on certain excisable goods

    If you hold an excise manufacturer licence, excise storage licence or periodic settlement permission (PSP) you can supply some excisable goods, duty unpaid, to certain purchasers. The goods you supply will be excise-free as you get an automatic remission of the excise duty.

    Limited automatic remission on certain quantities of beer

    You don't need our permission to destroy beer you manufacture that is damaged or not fit for consumption if:

    • you destroy less than (or equal to) 125 litres of alcohol (LALs) in a quarterly period
    • the goods are under our control
    • you haven't paid excise duty on them.

    However, you need to keep detailed records of the goods you destroy because we may ask to see these records.

    If you destroy more than 125 LALs in a quarterly period, you need to ask for permission from us first by lodging an excise remission application.

    Excise remission scheme for manufacturers of alcoholic beverages

    From 1 July 2021 eligible alcohol manufacturers can receive a full (100 per cent) automatic remission of excise duty on alcoholic beverages they manufacture, up to a maximum of $350,000 per financial year.

    This applies to alcoholic beverages that you enter for home consumption on or after 1 July 2021.

    Find out about:

    Last modified: 11 Jun 2021QC 63609