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How hard is it to obtain a License to distill Alcohol in Australia?

Made some simply amazing Gin recently, my very first attempt, it just blew me away.. I let a few people taste it and they wanted buy it (and most were not normally Gin drinkers) but naturally I couldn't even if I wanted to. I know it's possible to distill small runs of Gin for resale... "boutique hand crafted distillery". But other than just scaling up my still to say 200 Litres or bigger what do I need to do to qualify for a distilling license and how hard is it to get. I'd prefer to have an idea prior to talking with the necessary government people... maybe it's just wishful on my part but I'd love to give it a crack!

Comments

  • edited March 2016

    @MiniMike said: Made some simply amazing Gin recently, my very first attempt, it just blew me away.. I let a few people taste it and they wanted buy it (and most were not normally Gin drinkers) but naturally I couldn't even if I wanted to. I know it's possible to distill small runs of Gin for resale... "boutique hand crafted distillery". But other than just scaling up my still to say 200 Litres or bigger what do I need to do to qualify for a distilling license and how hard is it to get. I'd prefer to have an idea prior to talking with the necessary government people... maybe it's just wishful on my part but I'd love to give it a crack!

    I would like to know Too. When you find out.

  • Not sure about getting it but once you've got it there'll be lots of record keeping and well over 20 bucks payable excise on every bottle.
    Better off giving it away.

  • edited March 2016

    Seems @Ryno is cutting out a nice niche for himself. Along with a few others.

    It is doable.

    StillDragon North America - Your StillDragon® Distributor for North America

  • edited March 2016

    The ATO has a very good guide where they lead you through all the steps.

    Application for a licence to manufacture excisable products – alcohol @ Australian Taxation Office

    I have found them very helpful in the main in my dealings with them and from reports from my customers. The thing i have heard the most problems with have been local councils approvals. In some cases the residents will object to anything and some council planners are...difficult...

    But you need the premises approved before you can be granted permission to acquire a still.

    The other thing the like to see is some formal Training. I don't believe this is because they want you to make fine whiskey, but because they want to know you can work out the excise.
    There is a real opportunity for distilleries here in this country to develop a short course that meets those needs and put it on in their state same as the one below has. It seems to be the stumbling block that many of my customers find.
    I usually recommend volunteering their time at one of their smaller local distilleries to gain some experience and possibly asking the distiller there for a reference.

    Distillery School @ Redlands Estate Tasmania

    StillDragon Australia & New Zealand - Your StillDragon® Distributor for Australia & New Zealand

  • +1 @punkin. It's dead easy - as long as you work with them in a friendly manner at ATO, show you have a business plan when it comes to distillation and show you have safety/distillation experience. They are worried about the explosion and methanol risks (as well as the excise risk) and don't want to enable unsafe practitioners. Be prepared to spend some cash on proper hydrometers and scales plus demonstrate to them the spreadsheet or system you will use to keep track of excise.

  • They are also keen for you to demonstrate security of the alcohol bond. Mine is my garage and they were happy as it is lockable and has fences all around.

  • @yurgle's right. Just work withe the ATO people. They're pretty easy to get on with. They need to make sure you know what you're doing and will pay your excise correctly. Also don't forget you'll also need a State liquor licence if you plan on selling your products. We have a renewable limited licence here in Victoria which allows us to give tastings & sell our own product for take away consumption (to anyone over18) direct from the Still House door.

  • In the scheme of things getting the license is the easy part. Making a success of it, that's going to be the hard part ;)

  • @TheMechWarrior said: In the scheme of things getting the license is the easy part. Making a success of it, that's going to be the hard part ;)

    That really is the universal challenge.

    StillDragon North America - Your StillDragon® Distributor for North America

  • Thank you all for your advice.

  • FYI, I'm in the process of rebranding my "R&D" company. At the same time bringing on 2 new directors and launching a new CBD distillery in June/July. I've been a little quiet of late due to a number of unfortunate circumstances, one of them involving a minor spinal injury I'm hoping to have addressed ASAP. In May I'll look to create both a still build log as well as a distillery build log. Thanks for your patience, stay tuned all.

    Cheers,

    Mech.

  • edited April 2016

    Good luck @MiniMike.

    In 2004, I had a 4 foot tall pygmy accountant who was 25 years old, and who worked for me on a project in Tarkwa in Ghana West Africa who I used to call Minimike. Now I know everyone here will think thats bullshit and I have been drinking too much but it is a true story.

    I am from Oz and want to set up a distillery but I am going to do it in Mendoza Argentina and not Brisvegas in Oz. The tax here is 5% on spirits. Its going to be easier to make a buck, at least I hope so.

  • @DonMateo well 5% will certainly make it easier on your cashflow but your competitors have the same advantage.

  • Yes your right, although as far as I know there is no-one else in this town making whiskey and only one guy working on setting up. I am going to give it a go.

  • Thanks mate. Do or do not there is no try. As Master Yoda says.

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