homebrewandbeer.com

Now, let me start by saying I am not considering selling beer... hell I have not even finished making my first batch... I ask this out of pure curiosity, and because many swear that their HB tastes as good if not better than commercial beer...

So I ask, what are the barriers to people, say for example a restraunter, brewing HB and selling it... Or a keen HB'er selling a few cases over the net

Seems like a commercial viability to me, however I do not know how complex the tax laws are and the licencing and standards that must be met....

For example who has the liability for WET tax (alcohol tax) the brewer or retailer?

For example, could a HB sell some quality brew to a restaurant and only need to worry about GST (which you dont if your cash flow is less than 50K)??

Just pondering away (instead of working)

Between the Liquor Licencing, Tax, and Health Authorities the whole thing becomes a giant pain.

Sorry to bring the whole thought down.

Cheers,
Greg

MHD wrote: Seems like a commercial viability to me, however I do not know how complex the tax laws are and the licencing and standards that must be met....

From what I understand, microbreweries don't make a tremendous amount of money. However, someone posted a news item a few weeks ago about a Federal Government proposal to give tax breaks to micros as a way to develop the industry. Would be nice to see the little guys given a chance.

Bet the bigger fish are somewhat unhappy about that...

Make it easier to set up a microbrewry, you might see more pubs making their own instead of buying it in...

If you want to brew and sell it you need to get a liquor producer's licence, and be very, very specific about making sure the alcohol content is what you say it is (the hydrometer that came with your kit won't cut it).

I'm sure there are other tax pains-in-the-arse!

Sorry to dampen your enthusiams.

Cheers,

Oliver

No enthusiasm... just curiosity which is slowly becoming answered

Oliver wrote:Sorry to dampen your enthusiams.

... and sorry to dampen your enthusiasm, too!

Oliver

MHD wrote:Just pondering away (instead of working)

Excise kills you.

From the ATO website:

Rates
As a guide, listed below are the principal rates of excise duty effective 1 November 2005. If you need access to the actual tariff items to be used when completing your Excise Return, please refer to the Excise Tariff working pages.
Beer, spirits and other alcoholic drinks (excluding wines)

Beer, in individual containers not exceeding 48 litres, not exceeding 3% by volume of alcohol
$31.26 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
$36.43per 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
$36.43 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
$6.24 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
$19.60 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
$25.65 per litre of alcohol, calculated on the amount by which the alcohol content (by volume) exceeds 1.15%

hmmm..

Beer, in individual containers exceeding 48 litres, not exceeding 3% by volume of alcohol
$6.24 per litre of alcohol, calculated on the amount by which the alcohol content (by volume) exceeds 1.15%

That must be $36.24...


Lets call a longneck 1L for ease... say if mine is 4.5%

thats 45ml of alcohol, but only that counted over 1.15ml is counted

so that is 34.5ml

0.0345*36.24=$1.25

Yes, that is a bit of tax isnt it... will keep this in mind next time I have my next pint at the local microbrewry...

However, I think it would be the process required that would stop a lot of people going semi commercial, ie needing to deal with health regulations, tax men, getting dead accurate readings on alcohol (and as Oliver said, you would probably need to send it off to a lab to get exact %age determined)

Wonder how the tax works off the tap... must be some complex shit going on...

Informative post. I've wondered the same thing as the original poster myself and this has cleared things up.

For anyone that doesn't want to do the maths here is a table on the tax's from the ATO site

http://www.ato.gov.au/businesses/conten ... age=18&H18