Distillation Act (No. 2) 1968

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Distillation (No. 2)

No. 106 of 1968

An Act relating to Distillation.

BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

[Assented to 2 December 1968]

Short title and citation.

1.—(1.) This Act may be cited as the Distillation Act (No. 2) 1968.

(2.) The Distillation Act 1901–1966, as amended by the Distillation Act 1968, is in this Act referred to as the Principal Act.

(3.) Section 1 of the Distillation Act 1968 is amended by omitting sub-section (2.).

(4.) The Principal Act, as amended by this Act, may be cited as the Distillation Act 1901–1968.

Commencement.

2.—(1.) Sections 1, 2, 8 and 24 of this Act shall come into operation on the day on which this Act receives the Royal Assent.

(2.) The remaining provisions of this Act shall come into operation on the date fixed under sub-section (3.) of section 2 of the Customs Act (No. 2) 1968.

3. Section 3 of the Principal Act is repealed and the following section inserted in its stead:—

Parts.

“3. This Act is divided into Parts, as follows:—

Part I.—Introductory (Sections 1–9).

Part II.—Stills (Sections 10–11a).

Part III.—Licences (Sections 12–24).

Part IV.—Regulation of Distilleries (Sections 30–38).

Part V.—Removal of Spirits, and Computation and Payment of Duty (Sections 40–52).

Part VI.—Vignerons (Sections 53–57).

Part VIa.—Fortification of Australian Wines (Sections 57a–59).

Part VII.—Powers of Officers (Sections 60–72).

Part VIII.—Penal Provisions (Sections 73–80).

Part IX.—Miscellaneous (Sections 81–83).”.

Definitions.

4. Section 6 of the Principal Act is amended—

(a) by omitting the definition of “Illicit still” and inserting in its stead the following definition:—

“‘Illicit still’ means a still made, removed, set up, erected, sold or otherwise disposed of, purchased or otherwise acquired, imported, or in the possession or custody, or under the control, of a person, in contravention of this Act.”; and

(b) by omitting the definition of “Spirits” and inserting in its stead the following definition:—

“‘Spirits’ includes any liquor on which, under the name of spirits, any duty of Excise is imposed by the Parliament, whether the liquor is distilled or made or in any stage of distillation or making.”.

5. Section 8 of the Principal Act is repealed and the following section inserted in its stead:—

Incorporation of provisions of the Excise Act.

“8.—(1.) Parts II., V., VI., VIII., IX., X., XI., XII., XIII. and XIV. (other than sections one hundred and sixty-two A and one hundred and sixty-two b) of the Excise Act 1901–1968, except so far as they are inconsistent with this Act, are incorporated and shall be read as one with this Act.

“(2.) For the purposes of this section—

(a) a reference in the Excise Act 1901–1968 to a manufacturer shall be read as a reference to a distiller and to a vigneron;

(b) a reference in that Act to a factory shall be read as a reference to a distillery and to premises in respect of which a vigneron’s licence is in force under this Act; and

Making, selling or importing stills.

6. Section 10 of the Principal Act is amended by omitting from paragraph (c) the words “Sell or purchase” and inserting in their stead the words “Sell or otherwise dispose of, or purchase or otherwise acquire,”.

Persons incapable of holding licences.

7. Section 15 of the Principal Act is repealed.

8.—(1.) Section 19 of the Principal Act is repealed and the following section inserted in its stead:—

Form of security.

“19. A security shall be given in a manner and form approved by the Collector and may, subject to that approval, be by bond, guarantee, cash deposit or any other method, or by two or more different methods.”.

(2.) The amendment made by the last preceding sub-section does not affect the force or effect of any security given before the commencement of this section under the section repealed by this section.

Repeal.

9. Sections 25, 26 and 27 of the Principal Act are repealed.

Heading to Part IV.

10. The heading to Part IV. of the Principal Act is omitted and the following heading inserted in its stead:—

“Part IV.—Regulation of Distilleries.”.

Repeal.

11. Sections 28 and 29 of the Principal Act are repealed.

Duties of distiller.

12. Section 31 of the Principal Act is amended—

(a) by omitting from paragraph (b) the words “the officer” and inserting in their stead the words “any officers doing duty in the distillery”;

(b) by omitting from paragraph (c) the words “the officer” and inserting in their stead the word “officers”;

(d) by omitting from paragraph (j) the words “the officer” and inserting in their stead the word “officers”.

Repeal.

13. Sections 32, 39, 41, 42, 45, 48 and 49 of the Principal Act are repealed.

Recovery of amounts payable under section 50.

14. Section 50a of the Principal Act is amended by omitting from sub-section (1.) the words “sub-section (1.) of section forty-nine of this Act or”.

Loss during distillation.

15. Section 51 of the Principal Act is amended by omitting the words “the officer” and inserting in their stead the words “an officer”.

Customs control.

16. Section 57 of the Principal Act is amended by omitting the words “Two hundred dollars” and inserting in their stead the words “One thousand dollars”.

Strength of spirits for fortifying.

17. Section 58 of the Principal Act is amended by omitting the words “the officer” and inserting in their stead the words “an officer”.

Vessels to be emptied and cleaned.

18. Section 62 of the Principal Act is amended by omitting the words “the officer” (first occurring) and inserting in their stead the words “an officer”.

Forfeiture.

19. Section 73 of the Principal Act is amended by adding at the end of paragraph (I.) the words “, and other stills in which spirits have been distilled in contravention of this Act”.

20. After section 73 of the Principal Act the following section is inserted:—

Unlawful possession of still.

“73a.—(1.) A person, not being a distiller or a vigneron, shall not, without permission, have any still in his possession or custody or under his control.

Penalty: One thousand dollars.

“(2.) A distiller or a vigneron shall not, without permission, have any still in his possession or custody or under his control elsewhere than at his distillery or the premises to which his vigneron’s licence relates, as the case may be.

Penalty: One thousand dollars.

“(3.) This section does not apply to or in relation to a still of a capacity not exceeding one gallon.”.

Offences as to illicit stills.

21. Section 74 of the Principal Act is amended by omitting paragraph (1) and inserting in its stead the following paragraph:—

“(1) Use an illicit still;”.

Removal of spirits when licence ceases to be in force.

22. Section 77a of the Principal Act is amended by omitting the words “has, by virtue of section fifteen of this Act, ceased to be in force or”.

Removal of spirits on cancellation, &c, of licence.

23. Section 82 of the Principal Act is amended by omitting from subsection (1.) the words “has, by virtue of section fifteen of this Act, ceased to be in force or”.

Making of regulations.

24. At any time after this Act receives the Royal Assent and before the date referred to in sub-section (2.) of section 2 of this Act, regulations may be made under the Principal Act as amended by this Act as if the provisions of this Act referred to in that sub-section had come into operation on the date on which this Act receives the Royal Assent, but regulations so made shall not come into operation before the date fixed under that sub-section.

Overview

The Distillation Act (No. 2) 1968 was enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia to address issues related to the distillation of spirits, including the regulation of stills and distilleries. This Act amended the earlier Distillation Act 1901–1966, and incorporated certain provisions from the Excise Act 1901–1968. The primary policy objective of the Act is to regulate the distillation process, ensuring compliance with legal standards and preventing illicit activities. The Act introduces amendments to definitions, security requirements, penalties, and the incorporation of relevant excise provisions, aiming to strengthen oversight and enforcement within the distillation industry. The Distillation Act (No. 2) 1968 represents an effort to modernise and consolidate existing legislation, addressing gaps in the regulation of stills and distilleries. By amending and incorporating relevant sections from other Acts, the legislation aims to provide a comprehensive framework for the control and supervision of distillation activities, thereby promoting compliance and preventing illegal operations.

Scope and Application

The Distillation Act (No. 2) 1968 applies to the distillation of spirits, the operation of distilleries, and the licensing of distillers and vignerons. It governs the making, selling, importing, and possession of stills, as well as the duties of distillers, the regulation of distilleries, and the removal and computation of duty on spirits. The Act extends to the entire Commonwealth of Australia and incorporates relevant provisions of the Excise Act 1901–1968, subject to any inconsistencies with the Distillation Act. The Act applies to any person or entity engaged in the distillation of spirits, including distillers and vignerons who must hold a licence to operate. There are specific provisions for the form of security required for licences and penalties for unauthorised possession of stills. Distillers and vignerons must comply with the duties outlined in the Act, including the regulation of their distilleries and the removal of spirits when their licence ceases to be in force. The Act allows for the making of regulations to further detail the implementation and enforcement of its provisions.

Key Provisions

The Distillation Act (No. 2) 1968 introduces significant amendments to the existing Distillation Act, incorporating various sections of the Excise Act 1901–1968 into the former, while also making specific changes to definitions, licensing requirements, and penalties. Section 1 establishes the title and citation of the Act, while Section 2 outlines the commencement date for different parts of the Act. The Act redefines "illicit still" and "spirits" (Section 4), incorporates provisions from the Excise Act, and modifies how stills can be sold, disposed of, or acquired (Section 6). It also repeals certain sections and amends others to update the licensing requirements and the form of security that can be provided (Sections 7, 8, 19). The Act imposes several obligations on distillers and vignerons. Distillers must adhere to regulations governing the operation of distilleries, including allowing officers to inspect and control the premises (Sections 12–24). Vignerons must comply with specific licensing requirements and maintain their premises in a manner that complies with the Act (Sections 53–57). Both distillers and vignerons are subject to strict controls over the possession, use, and movement of stills and spirits, ensuring compliance with duty and excise regulations (Sections 30–52). The Act also mandates that distillers and vignerons provide security to the Collector in an approved form, which can be in various methods such as bond, guarantee, or cash deposit (Section 19). The Act imposes severe penalties for breaches of its provisions. For example, anyone found in possession of an illicit still without permission faces a penalty of one thousand dollars (Section 73a). The use of an illicit still is also an offence, carrying potential penalties under the Excise Act (Section 74). The Act also provides for the forfeiture of stills used in contravention of the Act and other associated penalties (Section 73). Failure to comply with regulations regarding the removal of spirits when a licence ceases to be in force or on cancellation of a licence can result in additional penalties (Sections 77a, 82). These provisions ensure strict adherence to the regulations governing the distillation and sale of spirits in Australia.

Area of Law: Commercial Law; Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Commencement Provisions; Repeal & Amendment; Offence Provisions; Enforcement Powers

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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