Growlers are not illegal. It took us a solid year of making sure everything was done correctly, and growlers were filled correctly, before we started doing it at the shop.
pretty much a summary of all the contributions in this thread to date.
I didn't state there was a worldwide shortage, nor did anyone else.
In Sydney, there certainly was a shortage due to the popularity, eg: a local brewer had ONE growler left a few weeks ago and asked customers to return theirs (for a credit). Another outlet resorted to crowd sourcing (basically pre-paying) for a shipment (perhaps it was Squealers).
When you say "illegal" to package from 50 L kegs without a "manufacturer's license", you mean a Manufacturer's
EXCISE Licence. According to the ATO, under the Excise Act, this CAN can be held by a pub or a retailer, easily, for the purpose of repackaging.
So it is quite legal to repackage from 50 L kegs if the correct licence is obtained.
I use to work in Australian Taxation Management and Accounting and can tell you that one cannot rely on advice from "speaking to the ATO". In fact, the ATO cannot be held liable for incorrect information from a consultant.
Section
77FC of the Excise Act covers this. It states that repackaging from 48 L or larger into packages less than 48 L is taken to be the manufacture of beer. Repackaging beer would not normally constitute 'manufacture' within the ordinary meaning of that term.
The problem with that, as I pointed out, is the double applied excise. Once for 50 L package at the brewery, then again at the point of repackaging for the 2 L package. Double dipping!
However, that can be avoided if one obtains an excise storage licence in order to acquire the bulk beer under bond (that is, without the duty being paid on the beer). The duty is then payable at the higher packaged rate when the growlers are filled.
