dr K
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A comment on another thread re: excise above and below 48 litre containers set me musing.
My understanding, and it may be a myth, is that in the lead up to GST (which would have increased the price of beer by 10% but reduced it by the the then sales tax amount 5%?..not sure either way a net increase) little friend of the worker chairman Johnny H promised that a glass (be it schooner, pint, pot, middie or just glass) would not increase. Little J's magic did so by reducing the excise on beer that was in containers greater than 48 litres (read a pub keg). The beer at the local did not go up, but the takeaway did. Thats the background.
If the ATO site is current then the current excise on beer >3.5% in containers less than 48 litres is $37.90 per litre of alcohol.
So a 4.9% (seemingly average) beer attracts an excise, on a 375ml (seemingly average) can, stubbie what ever of a little over $0.69...GST has to go on this, as it does on every further step of the process from bottling to selling..not that that is a big deal, most everything attracts GST.
A $32 case of VB at my local includes some $2.91 of GST and, excise of about $16.71 so that makes us up to $19.62 to the coffers and 52 cents per stubby to cover the beer, the bottle, the bottling, the freight, the cost of the coolroom, the selling and that often misunderstood concept..profit.
Now, on first cut it seems that the gum mint (via ATO) gets about half those $ over the counter, and all they have to do collect it, in fact they do not even do that, business collects tax not the ATO. So thats $16.71 incoming with the only outgoing being the cost of regulating and checking compliance (a frogs spurt in the ocean).
It is not unreasonable to suggest that the gum mint makes 10 x the $ that the brewery makes from beer, so now we must ask, if the brewery is makin a motza (which it again pays tax on)...
is there a problem, given the beer cash, with a decent gum mint giving some encouragement to small brewers by some relaxation of excise??
K
My understanding, and it may be a myth, is that in the lead up to GST (which would have increased the price of beer by 10% but reduced it by the the then sales tax amount 5%?..not sure either way a net increase) little friend of the worker chairman Johnny H promised that a glass (be it schooner, pint, pot, middie or just glass) would not increase. Little J's magic did so by reducing the excise on beer that was in containers greater than 48 litres (read a pub keg). The beer at the local did not go up, but the takeaway did. Thats the background.
If the ATO site is current then the current excise on beer >3.5% in containers less than 48 litres is $37.90 per litre of alcohol.
So a 4.9% (seemingly average) beer attracts an excise, on a 375ml (seemingly average) can, stubbie what ever of a little over $0.69...GST has to go on this, as it does on every further step of the process from bottling to selling..not that that is a big deal, most everything attracts GST.
A $32 case of VB at my local includes some $2.91 of GST and, excise of about $16.71 so that makes us up to $19.62 to the coffers and 52 cents per stubby to cover the beer, the bottle, the bottling, the freight, the cost of the coolroom, the selling and that often misunderstood concept..profit.
Now, on first cut it seems that the gum mint (via ATO) gets about half those $ over the counter, and all they have to do collect it, in fact they do not even do that, business collects tax not the ATO. So thats $16.71 incoming with the only outgoing being the cost of regulating and checking compliance (a frogs spurt in the ocean).
It is not unreasonable to suggest that the gum mint makes 10 x the $ that the brewery makes from beer, so now we must ask, if the brewery is makin a motza (which it again pays tax on)...
is there a problem, given the beer cash, with a decent gum mint giving some encouragement to small brewers by some relaxation of excise??
K
