Whats The Process To Become A Microbrewery

[Millet Man]

The ATO

Start here

http://www.ato.gov.au/businesses/pathway.a...001/003/043/003

They will want to know everything and then some. There primary purpose is to collect exise tax so you will have to account for every bit of grain and beer to make sure you are not cheating them. You will only need to have calibrated fermenters, as they collect exise on the brewed volume, not bottled. So if you brew 1000ltrs, but only bottle 750ltrs you pay excise on 1000ltrs. They will also take into account efficiency as well and will check your methods and recipies.

Have just gone through the process of relocating our brewery (in Victoria though so a bit easier by the sound of it) and the ATO part was probably the easiest part of it. If you follow the guidelines they give you and use their templates for records then there should be no problems. Excise is actually paid on the beer that goes out (stubbies, kegs) not the bright beer volume, however you need to keep records of brewed volume, filtering/transfer losses to bright beer and losses during bottling and kegging.

We started talking to our "new council" in May before we looked at buildings and were up and running in our new location by November - 6 months total and half of that was finding a site. Another benefit of being in Victoria.

Cheers, Andrew.

 

[winkle]

Another benefit of being in Victoria. biggrin.gif

Good to see that there is one

 

[Ducatiboy stu]

Have just gone through the process of relocating our brewery (in Victoria though so a bit easier by the sound of it) and the ATO part was probably the easiest part of it. If you follow the guidelines they give you and use their templates for records then there should be no problems. Excise is actually paid on the beer that goes out (stubbies, kegs) not the bright beer volume, however you need to keep records of brewed volume, filtering/transfer losses to bright beer and losses during bottling and kegging.

We started talking to our "new council" in May before we looked at buildings and were up and running in our new location by November - 6 months total and half of that was finding a site. Another benefit of being in Victoria.

Cheers, Andrew.

MMMmmm

The ATO (Alc Ing Grp in Adelaide )told me different that it was the amount of beer fermented, but they did say that they take into account losses, but they where easy to deal with and the guy I spoke to gave me a lot of info....he even emailed me all their forms etc...

Council and State Gov will be your hurdle...

And a good bank balance...

Microbreweries have the ability to make rich people poor ( Uless you sell to Coke-Cole-Amital )

 

[Thirsty Boy]

At work there are excise counters on the packaging lines ... once a carton of finished beer goes through the counter, excise must be paid. Before the counter.. nope.

The tax guys always want to move the counter further back up the line, the brewery wants it as close to the end as possible.. result, they are about 15 or so meters before the palletisers.

If we smash, or don't sell for QC reasons etc any of the beer that has been put through the counter, we can claim an excise credit for the product. But it has to be properly recorded and appear as an "accountable loss" in the stocktake. If its smashed before the excise counter, its just rubbish.

So its volume out the door rather than volume brewed. Mind you, they still want your fermentors calibrated and all that shizz ... if you made a lot more alcohol than you shipped out - they want to know where it went. Maybe they do it differently depending on the set-up of your brewery??

I know at least one AHB member here in Melborne that has gone through the licensing process and all the other rigmarole, and has set up a beautiful nano-brewery in his garage. (flexible 100-300L) So in Victoria at least.. its possible to do the homebrewer/microbrewer thing. Mind you, I suspect there was a chunk of cash and a lot of effort involved as well.

 

[Millet Man]

If we smash, or don't sell for QC reasons etc any of the beer that has been put through the counter, we can claim an excise credit for the product. But it has to be properly recorded and appear as an "accountable loss" in the stocktake. If its smashed before the excise counter, its just rubbish.

So its volume out the door rather than volume brewed. Mind you, they still want your fermentors calibrated and all that shizz ... if you made a lot more alcohol than you shipped out - they want to know where it went. Maybe they do it differently depending on the set-up of your brewery??

Much the same for smaller guys like us. Our fermenters don't need to be calibrated but bright beer tanks do (this is a recent change I believe), and the brewery is counted as a bond store so excise is paid weekly once the beer is shipped out. Even for exports you have to pay the excise and then claim it back later - ATO must do well on the short term money market.

Cheers, Andrew.

 

[tk75]

Council and State Gov will be your hurdle...

And a good bank balance...

Microbreweries have the ability to make rich people poor ( Uless you sell to Coke-Cole-Amital )

Basicly as everyone has said, the ATO probably won't give you any hassles, just your state gov. and local council and authorities. As far as costs go for the whole process...your legal fees are going to be the ones that will send you broke before you start!!

If your really serious about it all...have a chat on the quiet to a few of your local pubs and any independant bottle O's, hold a tasting of your base products and see what response you get. Then obviously if your product is received well...go ahead and set yourself up.

Oh and I have been through the process h34r:

 

[Screwtop]

I work in business so getting a company structure set up it less than a day. Seriously !

By far the simplest part.

I know how to chase the $$ that's not an issue.

Do the "F" Round (Friends, Family and Fwits) first when raising startup capital.

I can sell the Tinnie that's been parked on the lawn for the last 2 years to finance it if required.

Must be a really big tinnie :lol:

I'm thinking there should be a well documented process to follow to get started.

Hope so, Local Authority, EPA etc, Good Luck!

Screwy

 

[///]

The new legislation is for the sale of alcohol in small cafes/restaurants.
It does not change the existing laws for the manufacture of alcohol.

Doc

No there is some major changes withing the Liquor Act (2007) for Brewers, including cellar door sales for regional brewers.

Check out the OLGR website, not sure if the law is immediate or needs to be adopted in a time frame.

Scotty

 

[Doc]

No there is some major changes withing the Liquor Act (2007) for Brewers, including cellar door sales for regional brewers.

Check out the OLGR website, not sure if the law is immediate or needs to be adopted in a time frame.

Scotty

Maybe that is something that is in a subsequent bill. This is the summary of the Bill they passed last week from here
I don't see anything explicit about cellar door sales for regional brewers. Is it implied from another clause ?

This explanatory note relates to this Bill as introduced into Parliament.

The following Bills are cognate with this Bill:
Casino, Liquor and Gaming Control Authority Bill 2007
Miscellaneous Acts (Casino, Liquor and Gaming) Amendment Bill 2007

Overview of Bill
The object of this Bill is to replace the Liquor Act 1982 with new legislation that simplifies the existing liquor licensing system and regulatory framework and enhances liquor harm minimisation measures. The proposed Act gives effect to a number of key reforms arising out of the NSW Summit on Alcohol Abuse and the National Competition Policy review of liquor licensing legislation (eg the removal of the remaining needs test provisions in relation to the granting of liquor licences).

The principal reforms made by the Bill are as follows:

(a) to provide for a more flexible liquor licensing system to be administered by the new Casino, Liquor and Gaming Control Authority (the Authority) which will take over the liquor licensing and regulatory functions of the Licensing Court and the Liquor Administration Board (both of which will be abolished by theproposed Act),

(B) to rationalise the types of liquor licences that may be granted by the Authority, including a new type of hotel licence (a general bar licence) for bars that will not be able to sell take-away liquor or have gaming machines,

© to bring registered clubs under the new liquor licensing system,

(d) to streamline the liquor licensing process by removing the practice of making formal objections against licence applications in court, while ensuring that applications for hotel, club and bottle shop licences, as well as other significant applications such as licence removals and authorisations for extended trading, are subject to proper assessment by the Authority and community-based consultation,

(e) to introduce a standard trading period (being 5 am to midnight, except for Sundays when it will be 10 am to 10 pm) that will apply to on-premises liquor sales as well as take-away liquor sales and to enable the Authority to authorise extended trading hours in certain circumstances,

(f) to enable the regulations to shorten the standard trading period in relation to specified classes of licensed premises and to provide for extended trading after midnight when special events are being held,

(g) to prohibit in all cases the take-away sale of liquor on Good Friday or Christmas Day,

(h) to introduce a number of new regulatory measures, including the making of late hour entry declarations to prevent patrons entering licensed premises during late trading times and providing for the sale, supply or consumption of liquor to be restricted in areas of the State that are declared to be restricted alcohol areas,

(i) to enable the Director of Liquor and Gaming to determine complaints about noise and disturbance in relation to licensed premises,

(j) to expand the existing prohibition on selling liquor products that are desirable to minors to cover liquor products that are indecent or offensive and to enable the Director of Liquor and Gaming to also restrict or prohibit the promotion of liquor in certain circumstances,

(k) to provide for the taking of disciplinary action by the Authority against licensees and certain other persons (including the imposition of a fine or the cancellation or suspension of the relevant licence),

(l) to provide for a review by the Administrative Decisions Tribunal of any disciplinary action taken by the Authority under the proposed Act,

(m) to provide for the establishment of local liquor accords with the aim of eliminating or reducing alcohol-related violence or anti-social behaviour,

(n) to rationalise and extend the existing exemptions from liquor licensing requirements, in particular by allowing bed and breakfast establishments and retirement villages to supply liquor without a licence in certain circumstances,

(o) to continue the operation, under the new licensing scheme, of existing liquor licences and to preserve existing trading entitlements and authorisations.

The proposed Act will be part of the gaming and liquor legislation for the purposes of the proposed Casino, Liquor and Gaming Control Authority Act 2007. That Act, which constitutes the Authority, contains provisions that are relevant to the administration of the proposed Act, including provisions relating to investigations by police officers and inspectors and other enforcement powers as well as the probity of
key officials.

I also remember reading that new licenses under the new bill probably won't be available/issued until mid 2008.


Doc

 

[Doc]

Found the text you mention /// in the actual bill.

Small-scale producers of beer, spirits etc in non-metropolitan areas
(1) A producer/wholesaler licence authorises the licensee, if the licensee carries on business as a small-scale producer of beer, spirits, cider, perry or mead:
(a) to sell the licensees product by wholesale, at any time on the licensed premises, to persons authorised to sell liquor (whether by wholesale or by retail), and
(B) to sell the licensees product by retail on the licensed premises, for consumption away from the licensed premises only and only if it is supplied in sealed bottles, on any day of the week during
the standard trading period for that day or during such other period as may be authorised by an extended trading authorisation,
and
© to sell or supply the licensees product, at any time on the licensed premises, to customers and intending customers for consumption while on the licensed premises, but only for the purposes of tasting, and
(d) to sell or supply the licensees product at any time on the licensed premises to the employees of the licensee or of a related corporation of the licensee.

(2) For the purposes of subsection (1):
(a) a licensee is a small-scale producer only if the premises on which the licensee carries on business as such are:
(i) located in a non-metropolitan area, and
(ii) comply with such other requirements as may be prescribed by the regulations, and
(B) a product (being beer, spirits, cider, perry or mead) is the licensees product only if it:
(i) has been produced on the licensed premises, and
(ii) is uniquely the licensees (or a related corporation of the licensees) own product.

Doc

 

[///]

Found the text you mention /// in the actual bill.
Doc

its a fundamental shift and good from that respect. Just concerned at now having 2 classes of brewers and the impact on someone like St Peters, Five Islands, Queens Wharf who are small producers such changes would be positive for.

Scotty

 

[floppinab]

but only for the purposes of tasting

Damn, and I was hoping to open a hair salon using only beer products brewed on the premises.

 

[floppinab]

its a fundamental shift and good from that respect. Just concerned at now having 2 classes of brewers and the impact on someone like St Peters, Five Islands, Queens Wharf who are small producers such changes would be positive for.

Scotty

Not quite sure if I understand what you are saying there Scotty. Brewers like the ones you have listed positive in that it should open up new markets for them in the shape of a lot more smaller licencees taking up these licences or negative in the fact they don't have their own licenced premises to offer their wares from.

 

[PostModern]

Not quite sure if I understand what you are saying there Scotty. Brewers like the ones you have listed positive in that it should open up new markets for them in the shape of a lot more smaller licencees taking up these licences or negative in the fact they don't have their own licenced premises to offer their wares from.

I was talking to Scotty about this the other day. The problem is that they are in metro areas, so can't benefit as the clause specifies "Small-scale producers of beer, spirits etc in non-metropolitan areas". Sure they'll benefit from increased small venues selling their product, but they can't retail from their own premises.

 

[Thirsty Boy]

Thats a bit of tough luck for breweries that happen to be located in a metropolitan area. I'm not sure how it goes inother areas, but if that legislation was applied to Melbourne (which I know it isn't) it would not give the ability to offer tastes or cellar door sales to at least 4 or 5 different micros.

Its urbanist is that bill

Still, its got to be great news for the rural micros

 

[chovain]

I think the "non-metro" clause is intended to make things fairer for the country brewers, rather than take anything away from the city brewers.

City brewers will get a huge advantage out of the new general licences - they should find it relatively easy to market to the new licensees directly, I imagine. Licensees would be insane not to put some unusual beers on their menu.

Country brewers can't really do that, as it's unlikely there'll be too many new licensees popping up in small towns for them to market to.

Don't forget all brewers are going to be allowed to charge for on-premise tasting now, too.

Edit: The point I'm trying to make (which got lost somewhere along the way) is that this change is giving country brewers something new that they didn't get before. They get a free partial off-license for their own beers is a new feature of the legistlation. There's nothing stopping other brewers from applying for a full off-license, or continuing using one if they already have one.

 

[///]

I think the "non-metro" clause is intended to make things fairer for the country brewers, rather than take anything away from the city brewers.

City brewers will get a huge advantage out of the new general licences - they should find it relatively easy to market to the new licensees directly, I imagine. Licensees would be insane not to put some unusual beers on their menu.

Country brewers can't really do that, as it's unlikely there'll be too many new licensees popping up in small towns for them to market to.

Don't forget all brewers are going to be allowed to charge for on-premise tasting now, too.

Edit: The point I'm trying to make (which got lost somewhere along the way) is that this change is giving country brewers something new that they didn't get before. They get a free partial off-license for their own beers is a new feature of the legistlation. There's nothing stopping other brewers from applying for a full off-license, or continuing using one if they already have one.

And I think your right there. The changes came from the consultative process of submissions made to the Minister. The main thrust for the regional brewers is to foster business in regional area's as has been allowed to wine makers. There are not many wine makers in industrial buildings in the urban area's thankfully...

Scotty

 

[Ducatiboy stu]

Yeah

I winery style license for Brewers, which makes sense. You can sell only YOUR own beer from your premises.

Unfortunatly, the only problem that I can see is that there will be a period where the granting of a regional brewers license will have to go thru a period of " Umm...yeah..we have new legislation now...exactly how does it work....." as it will also affect the way councils deal with DA for regional breweries..only (hopefully ) in respect to traffic,parking, social impact etc

I know my council where at a loss to with how to process my application, but what I did manage to do ( after some positive discussions ) was to get an approval that allowed me to do it as a "cottage" based industry. This allowed me to use my shed ( no bigger than a double carport ) on land that was not designated for the purpose of a brewery...but generally they where very supportive


Unfortunatly 2 small monsters ( love em as I do ) slowed my plans right down...

 

[facter]

anyone have any info on doing this in WA?

 

[tk75]

anyone have any info on doing this in WA?

Check here - http://www.rgl.wa.gov.au/Default.aspx?cat=Liquor