Information for the calculations
To calculate the alcoholic content, you need to know the:
- type of excisable alcohol product (that is, beer, spirits or other excisable beverages)
- total volume of the product
- alcoholic strength of the product
- current excise duty rate applicable to that product.
Make all calculations to 2 decimal places, up to when you include the information on the excise return. On the excise return, you may:
- consolidate product lines by tariff item or sub-item
- calculate the total litres of alcohol (LAL) or each line to one decimal place.
To work out measurements, see Measuring alcohol volume and strength.
Beer – formula for excise duty
The excise duty for beer is worked out on the alcoholic content above 1.15%:
- Total volume (litres) of product × (alcohol strength – 1.15%) × current excise duty rate.
Example: calculating excise duty for beer
Brewery Co delivers 10 cases of beer, each containing 24×355 ml bottles with 5% alcohol by volume into the Australian domestic market on 8 March 2023.
The beer is classified to sub-item 1.10 in the Schedule to the Excise Tariff Act 1921 and has a duty rate of $57.79 per litre of alcohol (as at 1 February 2023).
The duty payable is calculated as follows:
- 10 cases × 24 bottles × 0.355 litres each = 85.2 litres
- 85.2 litres × (5% − 1.15%) = 3.28 LALs.
For the purpose of calculating duty payable, the LALs are truncated to one decimal place.
The LALs are then multiplied by the relevant duty rate, in March 2023, to find out the duty payable:
- 3.2 × $57.79 = $184.92.
Spirits and other excisable beverages – formula for excise duty
The formula for calculating excise duty for spirits and other excisable beverages is:
- Total volume (litres) of product × alcohol strength × current excise duty rate.
Example: calculating excise duty for spirits
Bottler's Gin delivers 100 cartons, each containing 12×700 ml bottles of gin, at 37.2% alcohol by volume, into the Australian domestic market on 10 February 2023.
The gin is classified to sub-item 3.2 in the Schedule to the Excise Tariff Act 1921 and has a duty rate of $97.90 per litre of alcohol (as at 1 February 2023).
The duty payable is calculated as follows:
- 100 cartons × 12 bottles × 0.7 litres each = 840.0 litres
- 840 litres × 37.2% = 312.48 LALs.
For the purpose of calculating duty payable, the LALs are truncated to one decimal place.
The LALs are then multiplied by the relevant duty rate, in February 2023, to find out the duty payable:
- 312.4 LALs × $97.90 = $30,583.96.
For more examples covering a variety of beverages, see Excise guidelines for the alcohol industry section 6.3.5 – How do I work out the amount of duty to pay?
Brew on premises shops – calculating excise duty
The excise duty on beer brewed at brew on premises shops (BOPS) is calculated on each batch (customer's fermenter).
Excise is payable on the full contents of each fermenter.
The excise duty on beer brewed at BOPS is lower than for commercially-brewed beer. The duty payable will vary according to the beer's strength.
For information on your excise return obligations, see Lodging and paying - excisable alcohol
Work out the excise duty you need to pay on alcohol using the volume and strength of your final product.