Excise guidelines for the alcohol industry

• This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

10 BEER

10.1 PURPOSE

This Chapter deals with how excise law applies to beer and discusses:

•

what beer is

•

what categories of beer there are, including beer brewed at home and beer repackaging

•

calibration of vessels and instruments

•

sampling and strength testing

•

contents for excise duty purposes

•

excise liability for beer

•

brewers' responsibilities, including record keeping and production losses

•

refunds and remissions, including the excise refund scheme for alcohol manufacturers and duty-paid beer returned to the brewery, and

•

brew on premises shops.

10.2 INTRODUCTION

10.2.1 DEFINITION OF BEER

Beer is defined of the Schedule to the Excise Tariff Act (Schedule). In summary, a beverage is 'beer' if it is brewed and:

•

is the product of the yeast fermentation of an aqueous extract of predominantly malted or unmalted cereals, but may also contain other sources of carbohydrates

•

contains hops, or extracts of hops, so that the beverage has no less than 4 International Bitterness Units (IBUs) or other bitters. If it contains other bitters, the beverage must have a bitterness comparable to that of a beverage with no less than 4 IBUs

•

may have spirit distilled from beer added to it if that spirit adds no more than 0.5% to the final total volume of alcohol

•

may have other substances, including flavours, containing alcohol (other than beer spirit) added to it but only if that alcohol adds no more than 0.5% to the final total volume of alcohol

•

contains no more than 4% by weight of monosaccharide and disaccharide (sugars)

•

does not contain any artificial sweeteners, and

•

has an alcohol content of more than 1.15% by volume.

IBUs are a recognised measure of bitterness of beer containing hops or extracts of hops.

More information about IBUs is publicly available on the internet.

You should be able to establish whether your product meets the definition of 'beer' for excise purposes from your manufacturing specifications and processes and from standard industry information.

Products that clearly meet the definition will not require testing. However, if you are unsure whether your product meets the definition, you should have one brew tested and as long as you continue to brew that formula, you will not need to undertake any further testing unless directed by us. You will need to do this for each type of beer you make where you are unsure if it will meet the definition.

Record keeping

You should keep beer recipe sheets and evidence you have brewed to those recipes. We use these records to establish:

•

the quantities of raw materials you used to manufacture each type of beer

•

whether or not your beverage meets the definition of beer for excise purposes.

Your beer recipe sheets should include details of the beer type, and the type and quantity of all the following:

•

malt

•

mash ingredients

•

hops

•

other kettle additions

•

any other additions.

Note – if your beverage contains more that 1.15% alcohol by volume but does not fit within the definition of beer, it will be an 'other excisable beverage'.

For more information about the definition of beer or how excise duty applies to it, you can phone us on 1300 137 290 .

10.2.2 CATEGORIES OF BEER

There are 3 categories of beer. These are:

•

home brew that is brewed for non-commercial purposes using non-commercial facilities and equipment

•

beer that is brewed for non-commercial purposes using commercial facilities or equipment such as brew on premises shops (BOPS)

•

any other beer that meets the definition, for example, beer brewed for commercial purposes, including repackaging.

Home brewing

Beer produced for non-commercial purposes using non-commercial equipment (home brew) is not classified to an item of the Schedule and is therefore not excisable. ^[245]

You must not sell or offer for sale home brewed beer which has been produced under the home brew exemption (for non-commercial purposes). ^[246]

Beer brewed in a brew on premises shop

BOPS provide commercial facilities or equipment to customers to make beer for their own consumption.

Beer produced in a BOPS must be brewed by the customer for personal use by the customer, and not for sale.

Beer produced in a BOPS is excisable.

For more information about BOPS refer to Section 10.3.4 Brew on premises shops.

Beer brewed for commercial purposes

Beer is for commercial purposes if it is not home brew or beer brewed in a BOPS.

Beer produced for commercial purposes is excisable.

10.3 POLICY AND PRACTICE

10.3.1 EXCISE LIABILITY FOR BEER

Classifying beer

The classification of beer depends on 3 things:

•

the volume of the ' container ' and the design of the container in which the beer is packaged

•

the alcoholic strength of the beer, and

•

whether it is for commercial or non-commercial purposes.

Commercial beer subject to a non-concessional rate of duty

Beer packaged in a container less than 8 litres, or between 8 litres and 48 litres and not designed to connect to a pressurised gas delivery system, pump delivery system or other system prescribed by the regulations, attracts a higher rate of excise duty.

Figure 7 is an extract of the Schedule to the Excise Tariff Act for the 3 subitems that apply to beer packaged in this way.

Figure 7: Extract of Schedule for subitems that apply to commercial beer subject to a non-concessional rate of duty

*Rate of duty as at 3 February 2025. You can find the current excise rates of duty, along with those applicable pre 3 February 2025 at our tariff working page Excise duty rates for alcohol .

Commercial beer subject to a concessional rate of duty

Beer packaged in a container that exceeds 48 litres capacity, or at least 8 litres but not exceeding 48 litres and subject to specific criteria in relation to the design of the container, attracts a lower rate of excise duty. This applies to:

•

containers exceeding 48 litres

•

containers of at least 8 litres but not exceeding 48 litres that are designed to connect to a pressurised gas delivery system, pump delivery system or other system prescribed by the regulations, and

•

beer that is delivered for sale over the bar directly from a storage tank.

Figure 8 is an extract of the Schedule to the Excise Tariff Act for the 3 subitems that apply to beer packaged in this way.

Figure 8: Extract of Schedule for subitems that apply to commercial beer subject to a concessional rate of duty

*Rate of duty as at 3 February 2025. You can find the current excise rates of duty, along with those applicable pre 3 February 2025 at our tariff working page Excise duty rates for alcohol .

Repackaged beer

When excise duty is paid on beer at the rate specified in subitems 1.2, 1.6 or 1.11 of the Schedule, and the beer is then subsequently repackaged into sealed individual containers of less than 8 litres, or of at least 8 litres but not exceeding 48 litres and not designed to connect to a pressurised gas delivery system, pump delivery system or other prescribed system, the repackaging is taken to be the manufacture of beer. ^[247] However an exemption to this applies to the first 10,000 litres of beer that is repackaged at particular premises in a financial year where:

•

the beer is repackaged into exempt beer containers for the purposes of retail sale, and

•

the retail sale occurs immediately after the repackaging of the beer.

See Section 2.3.1 Different licence types for further information.

The repackaged beer is dutiable at the rate that applies to beer packaged in a container less than 8 litres, or between 8 litres and 48 litres and not designed to connect to a pressurised gas delivery system, pump delivery system or other system prescribed by the regulations. This is in addition to any excise duty already paid at the rate applicable to subitem 1.2, 1.6 or 1.11 of the Schedule.

Non-commercial beer (beer produced at a brew on premises shop)

Separate classifications apply to beer produced at a BOPS, according to strength.

Figure 9 is an extract of the Schedule to the Excise Tariff Act relevant to beer produced at a BOPS.

Figure 9: Extract of Schedule for subitems that apply to non-commercial beer

*Rate of duty as at 3 February 2025. You can find the current excise rates of duty, along with those applicable pre 3 February 2025 at our tariff working page Excise duty rates for alcohol .

Strength of the beer

As can be seen from the extracts of the Schedule in this section, the subitem applicable to the beer is dependent on the strength of the beer.

The requirements for measuring the alcoholic strength of ' excisable alcoholic beverages ' are detailed in Excise (Alcoholic strength of excisable goods) Determination 2019 . Refer to Section 6.3.6 Rules for measuring volume and alcoholic strength for further information in relation to strength measurement requirements.

Measuring volume

The requirements for measuring the volume of containers of excisable alcoholic beverages are detailed in Excise (Volume - Alcoholic excisable goods) Determination 2019 . Refer to Section 6.3.6 Rules for measuring volume and alcoholic strength for further information in relation to volume measurement requirements.

For beer manufactured and packaged in kegs, you are required to nominate the volume you intend to fill each keg size. This information is to be provided:

•

in the initial application for a licence, or

•

at any time after a licence is issued, if it is intended to change the fill volumes or introduce other ' bulk container ' sizes.

Beer delivered direct to consumers from a storage tank

In some instances, beer is manufactured at a brew pub and the beer is pumped from a storage tank (greater than 48 litres) in the ' underbond ' area to the bar where it is sold as draught beer. In these instances, the classification for this beer is for beer in containers exceeding 48 litres.

Beer used in the manufacture of a non-excisable product

An entity that is licenced to manufacture beer will be required to pay excise duty on the beer if it is used by them as an ingredient in the manufacture of a non-excisable product (for example, a non-beverage food product). The Excise Act only allows for excisable goods to be used in the manufacture of other excisable goods, and not in the manufacture of non-excisable products.

Where beer used in manufacture is unfit for human consumption (that is, spoilt beer), the beer can be entered for home consumption with no payment of duty required. However, where the beer is fit for human consumption, this does not apply.

Calculating duty payable

All 8 subitems of the Schedule relating to beer specify that duty is calculated on that alcohol content by which the percentage by volume of alcohol of the beer exceeds 1.15. This means to calculate the dutiable quantity the strength is reduced by 1.15 and then multiplied by the quantity.

---

Example 10A

The dutiable quantity of alcohol in 100 litres of beer at 5% alcohol by volume is:

100 (5% − 1.15%) = 3.85 LALs


For the purpose of calculating duty payable, LALs is truncated to one decimal place.

The LALs are then multiplied by the relevant duty rate to determine the duty payable:

3.8 × $43.39 [248] = $164.88


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10.3.2 RESPONSIBILITIES AS A BREWER

If you are licensed to manufacture beer, you are responsible for the safe custody of all alcohol under your control. ^[249]

You may be responsible for paying an amount equal to the excise duty that would have been payable on any stolen, missing or unaccounted for excisable beer. ^[250]

Where, after we take stock of excisable beer manufactured and the materials you use in the manufacturing process, it appears to us that not all the duty that should have been paid has been paid, we can call upon you to account for the shortfall. If you cannot account for this shortfall, we can demand that you pay the amount that should have been paid. ^[251]

If you hold a manufacturer licence, you do not need a separate storage licence to store excisable beer that you manufactured at those premises. You may also store beer that has been manufactured elsewhere by another entity and moved underbond into premises covered by your licence.

You are also responsible for ensuring that you comply with all conditions of your licence. ^[252]

For information about storage licences and conditions of licences, refer to Chapter 2 Licensing: Applications.

You must also:

•

ensure beer is only ' delivered into the Australian domestic market ' with appropriate authority, such as in accordance with a periodic settlement permission or Delivery authority ^[253]

•

pay the correct amount of excise duty ^[254]

•

get permission to move underbond excisable beer ^[255]

•

ensure that your manufacture complies with the Excise Act and any conditions specified in your licence ^[256]

•

not manufacture beer at premises that are not covered by your licence ^[257]

•

give us access to your factory when requested ^[258]

•

keep your excisable beer safe and accounted for to our satisfaction ^[259]

•

provide all reasonable facilities to enable us to exercise our powers under the Excise Act ^[260]

•

provide sufficient lighting, correct weights and scales, and all labour necessary for

–

weighing material received into your factory

–

weighing all excisable beer manufactured in your factory, and

–

taking stock of all material and excisable beer contained in your factory. ^[261]

For more information about duty liability and methods of payment, refer to Chapter 6 Payment of duty.

For more information about obtaining permission to move underbond alcohol products, refer to Chapter 5 Movement permissions.

Production losses

Production losses include:

•

any losses that occur after fermentation has taken place (that is, when alcohol has been produced and beer becomes accountable), or

•

when a brew is to be destroyed by tipping to waste.

You must be able to account for any losses. ^[262]

Accurate records of any loss of product must be kept for the period directed. ^[263] The records should be sufficient to enable comparison between current and historical losses for the same procedures.

We accept that some losses occur during production at various stages including:

•

transfer of product from the fermenter (due to spent yeast being drawn off)

•

filtration

•

transfer between storage tanks

•

reprocessing, and

•

packaging.

Calculating packaging losses

The packaging loss is calculated by subtracting from the header tank opening dip:

•

header tank closing dip

•

volume of packaged product

•

volume of filter losses

•

volume of breakages and leakages

•

volume of samples drawn, and

•

volume of drainings and flushings.

Excise duty on minor losses that occur as a normal part of the production or packaging process do not need to be acquitted by means of a remission. However, these losses must be recorded and accounted for in your records.

You must apply for a remission for other losses, such as a bad batch or accidental loss within the storage area.

Spoilt beer

Where beer is unfit for human consumption and is sold for manufacturing purposes, for example, for use in vinegar manufacture, it may, with our approval, be removed from your brewery ^[264] :

•

in containers marked 'spoilt beer'

•

without entry for home consumption, and

•

without the payment of excise duty.

Spoilt beer must be unfit for human consumption and not just out of specification. For example, beer that is merely under-filled or under-strength is not unfit for human consumption.

Automatic remission of up to 125 litres of alcohol per quarter

Where beer is damaged or unfit for human consumption, you may destroy it without the need to apply for our permission provided:

•

the amount you destroy is less than (or equal to) 125 litres of alcohol per quarter

•

the goods are under our control, and

•

you have not paid excise duty on the beer.

10.3.3 RECORD KEEPING

It is good business practice to keep suitable and adequate records for your operations. Many of the records you will need to be able to account for your beer production are the same as the records that you would normally keep for your own business purposes.

You must keep records, as directed by us and retain those records for the period directed. Your records must be available for us to inspect when requested. ^[265]

The information you may be requested to record includes:

•

the amount of excisable beer produced showing all inputs, outputs and waste

•

details of all excisable beer held in premises covered by your licence

•

all deliveries from premises covered by your licence

•

details of all duty payments and ' excise returns ', and

•

any refunds and remissions.

Examples of records you may be directed to keep are listed below.

Raw materials register

A raw materials register is a record of all of the raw materials received into the brewery. It includes the movement of raw materials out of storage and into production.

These records should include:

•

an invoice number

•

the date, type and quantity of the raw material received

•

the opening stock quantity

•

the date, type, quantity and batch number for the raw material sent to production, and

•

the closing stock quantity.

Recipes used

You should maintain beer recipe sheets. We use these as a reference to establish the quantities of raw materials used to manufacture each particular beer. Recipes are also used to verify whether or not a product is 'beer' as defined of the Schedule or whether it would be classified as an 'other excisable beverage'.

The minimum details you should include on the recipe sheet are:

•

beer type

•

malt details (type and quantity)

•

mash ingredients (type and quantity)

•

hops details or other bitters details (type and quantity), and

•

other kettle additions (type and quantity).

Brew house records

The minimum details you should keep for brew house records include:

•

the type of beer being manufactured

•

details of lauter tun, mash tun, kettle, and whirlpool

•

batch number and the date on which batch manufacture started

•

quantities of materials used (such as malt and hops)

•

volume of water added to the kettle

•

volume of liquid (wort) transferred to fermentation tanks

•

details of fermentation tanks used, and

•

details of losses incurred during transfer of product.

Fermentation and storage

The minimum details you should keep on fermentation and storage include:

•

date on which liquid (wort) was transferred to fermentation tanks

•

volume of liquid (wort) transferred to fermentation tanks

•

quantity of yeast added to the liquid (wort)

•

details of specific gravity measurements during fermentation

•

dates of specific gravity measurements during fermentation

•

temperature at which specific gravity measurements were made, and

•

fermentation tank details.

Bright beer register

Once fermentation is complete quantities of product transferred into 'bright beer' tanks must be recorded.

Bright beer is an industry term for beer which has been matured, carbonated and filtered and is ready for packaging and drinking.

The minimum details you should keep in the bright beer register include:

•

the date product was transferred into storage tanks

•

the quantity of product transferred into storage tanks

•

whether the product was filtered during transfer

•

the date product was moved out of storage tanks for packaging

•

the quantity and temperature of product moved out of storage tanks for packaging

•

the type of product in the tanks, and

•

details of identifying marks or numbers of tanks used.

Packaged product register

Details of all packaged product should be recorded including the:

•

product type

•

package details (for example, type and size of container)

•

opening stock details and date

•

quantities of packaged product as a running total

•

strength of packaged product

•

date on which product moved into store

•

quantities moved into the packaged product store

•

date on which product moved out of store, and

•

quantities moved out of the packaged product store.

Any movement of packaged product should be able to be matched with:

•

invoices

•

external delivery documents, and

•

records of any quantities used on brewery premises.

Other records

You should also maintain records on:

•

details of operational gains and losses

•

details of packaging losses

•

sales invoices and delivery documents

•

details of stocktakes undertaken

•

copies of excise returns

•

underbond movement documents

•

refund and remission approvals, and

•

destruction of goods.

10.3.4 BREW ON PREMISES SHOPS

Subitems 1.15 and 1.16 of the Schedule relate to beer produced for non-commercial purposes using commercial facilities or equipment. This means the beer is made by the consumer and is not for sale.

Businesses offering commercial facilities or equipment to make beer for non-commercial purposes are commonly referred to as brew on premises shops or BOPS.

Typically, BOPS have a number of brewing kettles, chilling facilities and bottling equipment as permanent fixtures. They also provide beer-making ingredients such as yeast, malt and hops, usually in kit form. BOPS staff are on hand to advise customers in all aspects of beer making.

The customer pays up front for:

•

the ingredients

•

use of the equipment

•

bottles (if needed), and

•

the expertise of the BOPS staff.

The customer is responsible for their own brew. Once the beer is bottled by the customer, about a fortnight after the initial process, the customer takes the beer home for consumption.

Calculating excise duty on beer from a brew on premises shop

Excise duty on beer brewed at a BOPS is calculated on each batch (customer's fermenter).

When the strength of each recipe has been established, that strength should be recorded and then used as a standard for that recipe for duty payment purposes.

The ATO generally accepts strength testing for sample or test brews on the following basis.

Excise liability for BOPS is calculated per batch (customer's fermenter). A batch is usually 48 to 50 litres in volume and the strength of the batch is taken to be a 'standard' strength which applies to a particular recipe or beer type, having been verified by previous test brews.

These initial test brews must show consistency in strength test results for each recipe or beer type. For example, when testing beer with target strength of 4.9%, to show consistency, 3 test brews could be sampled that produce identical results (4.9%). Alternatively, 3 test brews could be sampled that produce consistent results within 0.2% tolerance (for example, 4.7%, 5.0% and 5.1%). Upon examination of the strength testing results, field officers are to make a judgment on whether they consider that consistency in results has been demonstrated.

Once consistency can be shown, this standard strength can be applied to all batches of that particular recipe or beer type. The strength of recipes should only be re-established where there is a change to the recipe.

You pay the excise duty to us on either a weekly, monthly or quarterly basis (once you have a periodic settlement permission) by completing an Excise return.

To calculate the alcoholic strength of the beer (or other fermented beverages), you may use a hydrometer and formula, unless you produce more than 100,000 litres in a financial year.

If you are a BOPS operator, you are required to maintain sequential batch cards that contain the recipe and strength details for each brew, including test brews.

Excise is payable on the full contents of each fermenter. Bottling is carried out by your individual customers and no allowance is permitted for bottling or packaging losses.

Beer produced in your BOPS that is greater than 3% by volume is classified to subitem 1.16 of the Schedule. Beer that is less than or equal to 3% by volume is classified to subitem 1.15 of the Schedule.

You can find the current excise rates of duty, along with those applicable pre 3 February 2025 at our tariff working page Excise duty rates for alcohol .

For more information about how to calculate duty payable refer to Section 10.3.1 Excise liability for beer.

Excise duty on sample and test brews

If you are a BOPS operator, you may produce sample brews for tasting by customers, whether consumed on the premises or not.

You may also undertake test brews designed to confirm the integrity of your equipment and the results from your recipes.

Sample brews and test brews are not classified under subitems 1.15 and 1.16 of the Schedule; they are classified under subitems 1.1 to 1.11 of the Schedule depending on their strength and the size of the fermenter.

If the test brew has not been delivered into the Australian domestic market and duty has not been paid the licence holder may apply for a remission of excise duty and approval to dispose of the test brew.

For more information about refunds, refer to Chapter 7 Remissions, refunds, drawbacks and exemptions.

Record keeping

You must keep records as directed by us and retain those records for the period directed. Your records must be available for us to inspect when requested. ^[266]

The information you may be directed to record includes:

•

batch card sequencing (including the recipe, volume and strength details for each brew made)

•

records of all stock received (pre-packaged recipes, yeast, hops, malt)

•

details of test brews (remission approval or excise return if test brew not destroyed)

•

details of sample brews

•

copies of excise returns.

The specific form of records you maintain is dependent upon the type and scale of your operations. The requirements listed below are indicative of the type of records or data that would ensure that you could account for all of the excisable alcohol products for which you are responsible. They are provided as a guide only.

•

raw materials register

–

malt (malted cereals)

–

hops, hop extracts, and other bitters

–

adjuncts (unmalted grains used in brewing beer which supplement the main mash ingredient)

•

customer brew register

–

customer identification details, for example, name, address

–

date of brew

–

beer type, that is, recipe name

–

beer strength – derived from recipe and BOPS tests brews

–

beer quantity (litres) – usually a standard 48 or 50 litre quantity

•

sample and test brew register

–

brew identification details, for example, brew number, type, date

–

raw materials used, to assist with tariff classification (quantity and description, for example, 5 kg crystal malt) – these may be located on a recipe sheet

–

beer quantity (litres) – usually a standard 48 or 50 litre quantity

–

beer strength – derived from recipe for sample brews and derived from another strength testing methodology for tests brews.

10.3.5 WHAT ELSE WE CAN DO

Access

We have the right to enter premises covered by your licence at any time and can examine and take account of all the goods at the premises. ^[267] Note: we will usually only seek to enter your premises during normal business hours.

Stop vehicles

We can stop any vehicle leaving premises covered by your licence and check that there is proper documentation for excisable alcohol products leaving the premises. We can question the driver about any goods in the vehicle. We can direct that the vehicle is unloaded and goods taken to particular parts of the premises for further examination. We must not detain a vehicle for longer than is necessary to do the checking. ^[268]

Search vehicles

We can stop and search any vehicle (not just vehicles leaving a premises covered by your licence) without a warrant if we have reasonable grounds for believing that the vehicle contains excisable alcohol products and that the vehicle has been used, is being used or will be used in the commission of an offence against the Excise Act (and certain offences in the Crimes Act 1914 ^[269] and Criminal Code ^[270] relating to accessory after the fact, attempt to commit an offence, aid and abet someone to commit an offence and conspiracy to commit an offence). ^[271]

Examine goods

We can open packages and examine, weigh, mark and seal any excisable goods that are subject to ' excise control ' and if you are a manufacturer, lock up, seal, mark or fasten any plant in or on your factory. ^[272]

We can also:

•

supervise the manufacture of excisable alcohol products ^[273]

•

take utilise and dispose of samples of materials, partly manufactured excisable alcohol products and excisable alcohol products subject to excise control, and alcohol products that we have reasonable grounds for suspecting are excisable alcohol products on which duty has not been paid. ^[274]

10.4 PROCEDURES

10.4.1 MORE INFORMATION

If you need more information on beer, contact us via:

•

ATO Online Services

•

phone 1300 137 290 , or

•

write to us at

Australian Taxation Office
PO Box 3514
ALBURY NSW 2640

We will ordinarily respond to electronic requests within 28 business days. We will ordinarily finalise private rulings within 28 days of receiving all necessary information. If we cannot respond within 28 days, we will contact you within 14 days to obtain more information or negotiate an extended response date.

10.5 PENALTIES THAT CAN APPLY IN RELATION TO BEER

The following are the penalties that may apply after conviction for an offence.

Manufacture

If you manufacture excisable alcohol products without a manufacturer licence, the penalty is 2 years in prison or the greater of 500 ' penalty units ' and 5 times the amount of duty that would have been payable if the goods had been entered for home consumption on the penalty day. ^[275]

If you manufacture excisable alcohol products contrary to the Excise Act or any conditions specified in your licence the penalty is a maximum of 2 years in prison or 500 penalty units. ^[276]

If you manufacture excisable alcohol products at premises that are not covered by your licence, the penalty is 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty that would have been payable if the goods had been entered for home consumption on the penalty day. ^[277]

Move, alter or interfere

If you move underbond excisable alcohol products without approval, the penalty is a maximum of 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty on the excisable alcohol products. ^[278]

Note: this includes moving underbond excisable alcohol products from your premises to any other location or for export.

If your movement of underbond excisable alcohol products does not comply with the permission to move the underbond excisable alcohol products, the penalty is a maximum of 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty on the excisable alcohol products. ^[279]

If you move, alter or interfere with excisable alcohol products that are subject to excise control, without permission, the penalty is a maximum of 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty on the excisable alcohol products. ^[280]

If your brewery licence has been cancelled, and you remove from the premises any beer on which duty has not been paid, the penalty is a maximum of 50 penalty units. ^[281]

Deliver

If you deliver excisable alcohol products into the Australian domestic market contrary to your permission, the penalty is a maximum of 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty on the excisable alcohol products. ^[282]

Sell

If you sell excisable alcohol products on which duty has not been paid (unless it is an underbond sale), the penalty is a maximum of 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty on the excisable alcohol products. ^[283]

Records

If you do not keep, retain and produce records in accordance with a ' direction under section 50 ' of the Excise Act, the penalty is a maximum of 30 penalty units.

Directions

If you do not comply with a direction in regard to what parts of the factory can be used for various matters, the penalty is a maximum of 10 penalty units. ^[284]

False or misleading statements

If you make a false or misleading statement, or an omission from a statement in respect of duty payable on particular goods, to us, a penalty not exceeding the sum of 50 penalty units and twice the amount of duty payable on those goods. ^[285]

Evade

If you evade the payment of any duty that is payable, the maximum penalty is 5 times the amount of duty evaded or where a court cannot determine the amount of that duty the penalty is a maximum of 500 units. ^[286]

Facilities etc.

If you do not provide all reasonable facilities for enabling us to exercise our powers under the Excise Act, the penalty is a maximum of 10 penalty units. ^[287]

If you do not provide sufficient lighting, correct weights and scales, and all labour necessary for weighing material received into and all excisable alcohol products manufactured in your factory, and for taking stock of all material and excisable alcohol products contained in your factory, the maximum penalty is 10 penalty units. ^[288]

If we mark or seal excisable alcohol products or fasten, lock or seal any plant in your factory and you alter, break or erase the mark, seal, fastening or lock, the maximum penalty is 50 penalty units. ^[289]

10.6 TERMS USED

Bulk container

A container that has the capacity to have packaged in it more than 2 litres of liquid. ^[290]

Container

Any article capable of holding liquids. ^[291]

Deliver into the Australian domestic market

'Deliver into the Australian domestic market' ^[292] is the term we use in this Guide for when excisable alcohol products are released into domestic consumption. The term used in the legislation is 'deliver for home consumption'.

Normally, this will be by delivering the goods away from premises covered by a licence but includes using those goods yourself (for example, sales to staff).

The term 'home consumption' is not defined in the Excise Act and there is no definitive case law that looks at the issue in question. However, there are several cases where issues closely related to it are considered. ^[293]

The conclusion drawn from those cases is that 'home consumption' refers to the destination of goods as being within Australia as opposed to exporting them.

Excisable alcoholic beverages

Excisable goods are goods on which excise duty is imposed. Excise duty is imposed on goods that are manufactured or produced in Australia and listed of the Schedule or an Excise Tariff alteration.

As this Guide deals with alcohol products, we have used the term excisable alcohol products or excisable alcoholic beverages.

Excisable alcohol products include:

•

beer

•

spirits

•

premixed drinks known as ready-to-drink (RTD) beverages

•

brewed beverages that are not beer, and

•

spirit for non-beverage use, including denatured spirit.

Excise control

Goods are subject to excise control from the point of manufacture until they have been delivered into the Australian domestic market or for export.

Goods subject to excise control cannot be moved, altered or interfered with except as authorised by the Excise Act.

Excise return

An excise return ^[294] is the document that you use to advise us the volume of excisable alcohol products that you:

•

have delivered into the Australian domestic market during the period designated on your PSP, or

•

wish to deliver into the Australian domestic market following approval.

Penalty units

The value of a penalty unit is contained in section 4AA of the Crimes Act 1914 , and is indexed regularly. The dollar amount of a penalty unit is available at Penalties .

Section 50 direction

This is a written instruction issued under section 50 of the Excise Act to a licensed manufacturer, or proprietor of premises covered by a storage licence, to keep specified records, furnish specified returns, retain records for a specified period and produce those records on demand by us. The written instruction is incorporated into the conditions on the licence.

Underbond

This is an expression not found in excise legislation but it is widely used to describe goods that are subject to excise control. Excisable goods that are subject to the Commissioner's control are commonly referred to as 'underbond goods' or as being 'underbond'. This includes goods that have not yet been delivered into the Australian domestic market and goods moving between premises under a movement permission.

10.7 LEGISLATION (quick reference guide)

In this Chapter, we have referred to the following legislation:

•

Excise Act 1901

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section 4 – definitions

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section 24 – excisable goods and goods liable to duties of Customs may be used in manufacturing excisable goods

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section 25 – only licensed manufacturers to manufacture excisable goods

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section 26 – licensed manufacturers to manufacture in accordance with Act and licence

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section 27 – licensed manufacturers to manufacture only at licensed premises

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section 39D – conditions of licence

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section 46 – supervision by officers

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section 49 – facilities to officers

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section 50 – record keeping

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section 51 – collector may give directions

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section 52 – weights and scales

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section 53 – responsibility of manufacturers

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section 54 – liability to pay duty

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section 58 – entry for home consumption etc.

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section 60 – persons to keep excisable goods safely etc.

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section 61 – control of excisable goods

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section 61A – permission to remove goods that are subject to CEO's control

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section 61C – permission to deliver certain goods for home consumption without entry

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section 62 – deficiency in duty

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section 77D – spoilt beer

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section 77E – removal of beer when licence ceases to be in force or is varied to no longer cover a particular brewery

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section 77FC – repackaged beer

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section 86 – officers to have access to factories and approved places

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section 87 – power to stop conveyances about to leave an excise place

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section 87AA – searches of conveyances without warrant

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section 91 – examine all goods

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section 92 – seals etc. not to be broken

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section 106 – samples

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section 117A – unlawfully moving excisable goods

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section 117B – unlawfully selling excisable goods

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section 120 – offences

•

Excise Tariff Act 1921

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The Schedule

•

Crimes Act 1914

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section 4AA – penalty units

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section 6 – accessory after the fact

•

Criminal Code Act 1995

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section 11.1 – attempt

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section 11.2 – complicity and common purpose

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section 11.5 – conspiracy

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Amendment history

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References