Beer Taxes

[facter]

Gday guys.

Can anyone help explain the beer and alcohol excise system to me here in Australia? I'm lookinga t this table http://www.ato.gov.au/businesses/content.a...htm&page=18&H18 and wondering at it - sot hat is the amount of excise on the item? On top of that, would GST be applied as well, and is the GST rate for alcohol 10% like everything else?

Im not an accountant, but I'm pretty keen on figuring out how alcohol and beer is taxed here ...

 

[peas_and_corn]

I'll give you what little I know on the matter...

Beer obviously attracts the GST, which is there as it is not an unprocessed food.

There is excise, and that is on beer as well as cigarettes for two reasons-
1- the money will go towards health, as both cigarettes and alcohol have causative links to health problems (yes, it can prevent heart attacks, let's not get into that here)
2- it is seen as a luxury item; something that is not necessary in the way that bread is a necessary item.

This exice gets ramped up every 6 months.

However, the manner in which it is calculated is unknown to me

 

[Gulf Brewery]

Can anyone help explain the beer and alcohol excise system to me here in Australia?

Hi facter

Excise is paid by the beer manufacturer on the number of litres of alcohol in the beer. The rate varies on the size of the container it is sold in and the alcoholic strength (low alcohol has a lower rate of excise).

The info is on the ATO, just keep searching for excise and beer.

Cheers
Pedro

 

[facter]

Can anyone help explain the beer and alcohol excise system to me here in Australia?

Hi facter

Excise is paid by the beer manufacturer on the number of litres of alcohol in the beer. The rate varies on the size of the container it is sold in and the alcoholic strength (low alcohol has a lower rate of excise).

The info is on the ATO, just keep searching for excise and beer.

Cheers
Pedro

[post="126475"][/post]​

Yeah, i found the info on the ATO site rpeviously but it didnt make much sense to me

i mean, huh? $31.73 per litre...im not getting this, i would enver make an accountant, give me a web server any day hahahaha.



Beer, in individual containers not exceeding 48 litres, not exceeding 3% by volume of alcohol
$31.73 per litre of alcohol, calculated on the amount by which the alcohol content (by volume) exceeds 1.15%

Beer, in individual containers not exceeding 48 litres, exceeding 3% but not exceeding 3.5% by volume of alcohol
$36.98 per litre of alcohol, calculated on the amount by which the alcohol content (by volume) exceeds 1.15%

Beer, in individual containers not exceeding 48 litres, exceeding 3.5% by volume of alcohol
$36.98 per litre of alcohol, calculated on the amount by which the alcohol content (by volume) exceeds 1.15%

Beer, in individual containers exceeding 48 litres, not exceeding 3% by volume of alcohol
$6.33 per litre of alcohol, calculated on the amount by which the alcohol content (by volume) exceeds 1.15%

Beer, in individual containers exceeding 48 litres, exceeding 3% but not exceeding 3.5% by volume of alcohol
$19.89 per litre of alcohol, calculated on the amount by which the alcohol content (by volume) exceeds 1.15%

Beer, in individual containers exceeding 48 litres, exceeding 3.5% by volume of alcohol
$26.03 per litre of alcohol, calculated on the amount by which the alcohol content (by volume) exceeds 1.15%

Other alcoholic drinks, not exceeding 10% alcohol content (includes ready to drink or pre-mixed spirits)
$36.98 per litre of alcohol

Brandy
$58.48 per litre of alcohol

Fruit brandy, whisky, rum and liqueurs
$62.64 per litre of alcohol

Other spirits and alcoholic drinks, exceeding 10% alcohol content

 

[Thommo]

At a guess, you should be focusing on the amount of alcohol, not beer. IE, if it's 3% alcohol and $36 excise or whatever it was, then I think that's about 33 litres of beer.

Could be wrong though, but that's my understanding of it.

EDIT
Looking at it again, I forgot the bit about being above 1.15%. Yep, definately confusing.

 

[Gulf Brewery]

OK facter, you want an example <_<

I have a beer of 4.2% alcohol by volume. I have a 1000 litres that I am going to keg into 50 litre kegs

So this rule applies

Beer, in individual containers exceeding 48 litres, exceeding 3.5% by volume of alcohol $26.03 per litre of alcohol, calculated on the amount by which the alcohol content (by volume) exceeds 1.15%v

I have to pay excise on (4.2 - 1.15 ) * 1000 = 30.5 litres of alcohol.
Excise payable = 30.5 * $26.03 = $$$$$

Cheers
Pedro

 

[facter]

OK facter, you want an example <_<

I have a beer of 4.2% alcohol by volume. I have a 1000 litres that I am going to keg into 50 litre kegs

So this rule applies

Beer, in individual containers exceeding 48 litres, exceeding 3.5% by volume of alcohol $26.03 per litre of alcohol, calculated on the amount by which the alcohol content (by volume) exceeds 1.15%v

I have to pay excise on (4.2 - 1.15 ) * 1000 = 30.5 litres of alcohol.
Excise payable = 30.5 * $26.03 = $$$$$

Cheers
Pedro

[post="126484"][/post]​

Aha! Now it starts making a lot more sense - thanks a lot for that Pedro, its much appreciated. God, no wonder accountants make so much money if they have to rememebr how all these different things work!


Still, what a stupid and convoluted taxation system! hahahahaha

 

[peas_and_corn]

Still, what a stupid and convoluted taxation system! hahahahaha

[post="126490"][/post]​

Well it was designed my economists

How is the increase calculated?

 

[Trent]

I too have heard that the money goes towards health, but as far as I understood (from friends in the health industry) the excise they make per year far exceeds the annual health budget, but I suppose that is what pollies are for! (apologies for off topic comment) I DO know, though, that they tax you in the same confusing manner when bringing beer back in from overseas. You are only allowed 3 bottles, be it light beer or O.P rum, and then after you exceed that 2.25L, they excise you on the amount of actual alcohol ($31.73 under 3% etc...), then add the price you paid for it, take 10% of that for GST and add it onto your "excise" for a total payable. So it doesnt get any less confusing, even when on your way home from holidays.
At least the tax system in our borders encourages us to use 50L containers!
Unless yer gonna be opening a brewery, its best to ignore it and have a home brew.
All the best
Trent
EDIT - P & C, I think the increase is a set 5 or 10% that keeps on getting added every 6 months, called the alcohol equalisation tax, or something equally ingenious.

 

[PostModern]

The 48 litre package thing was a means for Johnny to keep his election promise that beer "sold across the bar" would not increase in price as a result of the excise shakeup that accompanied GST. ie, kegs of 50 litres as used by pubs attract a lower excise.

Pedro, out of curiousity, what kind of records do you need to keep and what means do you use to calculate alc %?

 

[Ducatiboy stu]

PoMO

Having looked at this excise thing rather serious, you have to keep a record of damn near everything. The ATO want to know where every last bit of grain goes, and what type of beer you make. If you spill beer, they must know.

The ATO actually OWN all the beer in a brewery untill the excise is paid.You need permision to move beer that has not had excise paid on it.