Excise Act (Alcoholic strength of beer) Determination 2003

Administered by Department of the Treasury

Legislation au F2007B00318 Not in force Legislative Instrument

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Commonwealth of Australia

Excise Act 1901

DETERMINATION UNDER SECTION 77FB

Notice is given that the following Determinations have been made under section 77FB of the Excise Act 1901. These Determinations are also available on the Australian Taxation Office legal database at www.ato.gov.au. For further information contact National Director, Alcohol Industry Group, Excise, Australian Taxation Office, GPO Box 2318, Adelaide SA 5001.

Excise Act (Alcoholic strength of beer) Determination 2003

I, MARGOT RUSHTON, Assistant Commissioner Excise in the Australian Taxation Office and delegate of the Commissioner of Taxation, make this Determination under section 77FB of the Excise Act 1901.

Dated 18 of March 2003

(signed)

MARGOT RUSHTON

Delegate of the Commissioner of Taxation

1 Name of Determination

This Determination may be cited as the Excise Act (Alcoholic strength of beer) Determination 2003.

2 Commencement

This Determination commences on and from the date of publication of the Determination in the Gazette.

3 Definitions

In this Determination:

beer means a beverage that meets the definition of beer in the Schedule to the Excise Tariff Act 1921;
CEO means the Commissioner of Taxation;
strength means the percentage by volume of alcohol at 20 degrees Celsius.

4 Application of Determination

This Determination applies to beer entered for home consumption on or after the date of commencement of the Determination.

5 Measuring equipment

(a) You must ascertain the alcoholic strength of beer by one or more of the following processes:

(i) by the use of gas chromatography;

(ii) by the use of near infra red spectrometry; or

(iii) by distillation followed by the gravimetric measurement of the distillate or by measurement in a density meter.

(b) If the brewery produces less than 100,000 litres of beer in a financial year, a hydrometer and a formula approved by the CEO may, with permission, be used to measure beer’s alcoholic strength.

(c) You must calibrate the accuracy of the measuring instruments (eg, volumetric glassware, hydrometer, pycnometer, thermometer), at intervals of one year or less, against standard instruments that have been certified by an independent authority approved by the National Association of Testing Authorities (NATA). The standard instruments must be calibrated by an independent NATA approved authority at intervals of five years or less.

6 Sampling and analysis

(a) You must ascertain the alcoholic strength of the beer by analysing samples of the product after it has reached its full alcoholic strength and is ready for packaging or has been packaged. Sufficient samples must be taken from each run to ensure the strength measured in accordance with paragraph 6(b) accurately reflects the true strength of the beer.

(b) You must analyse the samples with the approved calibrated equipment. The alcoholic strength of the beer is taken to be the average of the strength of all the readings. The alcoholic strength calculated is to be expressed as the volume that would be the volume of that alcohol if the alcohol were measured at a temperature of 20 degrees Celsius. Calculation by reference to the specific gravity of alcohol is to be made on the basis that, at a temperature of 20 degrees Celsius and in a vacuum, the specific gravity of alcohol in relation to water is 0.79067.

7 Permitted variations

For the purposes of working out the excise duty payable:

(a) The strength of beer, other than beer subject to secondary fermentation, is taken to be its nominated or labelled strength if the nominated or labelled strength does not exceed the actual strength by more than 0.2%.

(b) The strength of beer subject to secondary fermentation is taken to be its nominated or labelled strength if the nominated or labelled strength does not exceed the actual strength by more than 0.3%.

(c) If the actual strength of beer, other than beer subject to secondary fermentation, exceeds the nominated or labelled strength by more than 0.2%, the strength is the actual strength.

(d) If the actual strength of beer subject to secondary fermentation exceeds the nominated or labelled strength by more than 0.3%, the strength is the actual strength.

Overview

The Excise Act 1901 was enacted to address the need for comprehensive regulation of excise duties, which are taxes on the manufacture and sale of certain goods. This Act provides the framework for the imposition and collection of excise duties on goods such as alcohol, tobacco, and petrol. The Excise Act (Alcoholic strength of beer) Determination 2003 was introduced to provide specific regulations regarding the measurement and reporting of the alcoholic strength of beer. This Determination was made under section 77FB of the Excise Act 1901 and is administered by the Australian Taxation Office (ATO). The policy objective of this Determination is to ensure accurate measurement and reporting of the alcoholic strength of beer, which is critical for the correct calculation of excise duties. The Determination specifies the methods for measuring the alcoholic strength, the equipment that must be used, and the permitted variations in the reported strength. This legislation aims to maintain consistency and accuracy in the excise duty regime, ensuring that the government receives the appropriate revenue while also providing clarity and guidance to brewers.

Scope and Application

The Excise Act (Alcoholic strength of beer) Determination 2003 applies to all beer intended for home consumption that is entered into the market on or after the date of the Determination's commencement. This legislation specifies the allowable methods for measuring the alcoholic strength of beer, which must be determined using either gas chromatography, near infrared spectrometry, or distillation followed by gravimetric measurement of the distillate or by measurement in a density meter. For smaller breweries that produce less than 100,000 litres of beer in a financial year, the use of a hydrometer and a formula approved by the Commissioner of Taxation is permitted, subject to certain conditions. The Determination mandates that measuring instruments must be calibrated against standards certified by an independent authority approved by the National Association of Testing Authorities at specified intervals. Furthermore, it requires that the alcoholic strength of beer be ascertained through the analysis of samples taken after the beer has reached its full alcoholic strength and is ready for packaging. The Determination also allows for certain variations in the labelled strength of the beer when calculating the excise duty payable, with different thresholds for beers subject to secondary fermentation.

Key Provisions

The Excise Act (Alcoholic strength of beer) Determination 2003, issued under section 77FB of the Excise Act 1901, specifies the methods for measuring the alcoholic strength of beer, as well as the conditions under which these measurements can be made. The Determination applies to beer that is entered for home consumption after its commencement date. It provides definitions for key terms such as "beer" and "strength," and outlines the methods for measuring the alcoholic strength of beer, which include gas chromatography, near infra-red spectrometry, and distillation, among others. Smaller breweries producing less than 100,000 litres of beer annually may use a hydrometer and a formula approved by the Commissioner of Taxation, subject to permission. The Determination imposes several obligations on the parties it governs. Breweries must ascertain the alcoholic strength of their beer using the specified methods and equipment, which must be calibrated at regular intervals against standard instruments certified by an independent authority approved by the National Association of Testing Authorities (NATA). The measurements must be taken from samples of the product after it has reached its full alcoholic strength and is ready for packaging or has already been packaged. The samples must be sufficient to ensure that the measured strength accurately reflects the true strength of the beer. The strength of the beer is taken to be the average of all the readings and must be expressed as the volume of alcohol measured at 20 degrees Celsius. Breaches of the Excise Act (Alcoholic strength of beer) Determination 2003 can result in civil or criminal penalties, depending on the severity and intent of the breach. While the Determination itself does not explicitly outline the penalties for non-compliance, breaches of the Excise Act 1901 can lead to significant fines and, in severe cases, imprisonment. The specific penalties would be determined by the courts based on the particular circumstances of the case. The Determination serves to clarify the requirements for measuring the alcoholic strength of beer to ensure compliance with excise duty obligations and to maintain the integrity of the taxation system.

Area of Law: Taxation Law
Instrument: Legislative Instrument
Concepts: Definitions & Interpretation; Regulatory Standards; 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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