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ATO extends relaxed rules on excise duties relating to beer kegs

(Source: Bigstock)

The beer repackaging concession granted by the Australian Tax Office to help on premise liquor sellers during the Covid pandemic has been extended until April 30.

Under the concession, alcohol service venues can repackage kegged beer free of excise duty for takeaway sale in sealed containers (such as growlers) without an excise manufacturers license or having to pay an excise duty fee. This is the third time, ATO has extended its provisions to help hospitality venues during the pandemic.

The ATO has relaxed the rules to help hospitality venues sell remaining kegs while also opening new lines of revenues as lockdowns have severely affected many such businesses. It will prevent beer from having to be dumped because it has gone stale.

Prior to the pandemic, the ATO issued fines up to $23,000 for venues selling beer through other packaging methods when a manufacturing license was required.

“The ATO understands many businesses in the alcohol service industry have been facing difficulties due to Covid-19 restrictions,” the office said in a statement. “This concession applies to alcohol service venues operating under COVID-19 restrictions, for example where they are restricted to takeaway service only, have to apply to the four-square metre rule, or have limits on the number of customers allowed in an enclosed space.”

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