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  • The excise rates in Australia basically differ considerably, and such variability is a clear reflection of the existing historical factors, such as the desire to decrease the social costs realized on consuming alcohol, existing political compromises, proper protection to the industry, and probably the need to raise the existing revenue. This shows that some of the distilled spirits that do not meet the implemented standards of the Australian Excise Taxation procedures are normally discarded after distillation, since such product will not be good for the market.

The excise rates in Australia basically differ considerably, and such variability is a clear reflection of the existing historical factors, such as the desire to decrease the social costs realized on consuming alcohol, existing political compromises, proper protection to the industry, and probably the need to raise the existing revenue. This shows that some of the distilled spirits that do not meet the implemented standards of the Australian Excise Taxation procedures are normally discarded after distillation, since such product will not be good for the market. Essay Example

A Potential Compliance Issue with the Unwanted Spirit sent for Destruction after Distillation

The standards of spirit and other types of alcohol distillation has always remained constant with a significant purpose of controlling consumer behaviour and also providing structures, in terms of policies, to guide the taxation procedures. Such principles apply during distillation for the desired quality of alcohol to be supplied and consumed by the market, and they also apply during the process of packaging, distribution and also through taxation. With the current new technologies within the process of distillation, higher yields are being extracted more quickly, with some producing better qualities of alcohol as compared to others. There are three taxes that are subjected to alcohol, one being the excise tax which is normally taxed on a liter basis within a given beverage. For instance, light beer has 2.7 per cent and spirits have 40 per cent for spirits. This indicates that as per changes implemented within the consumer price, no excise-free threshold is issued to spirits whose content of alcohol have found to be less than 10 per cent in terms of volume. As per the Australian Taxation Office, excise rates are normally indexed for the purpose sustaining the real value of such rates, and this normally takes place in February and August of every year.

The excise rates in Australia basically differ considerably, and such variability is a clear reflection of the existing historical factors, such as the desire to decrease the social costs realized on consuming alcohol, existing political compromises, proper protection to the industry, and probably the need to raise the existing revenue. This shows that some of the distilled spirits that do not meet the implemented standards of the Australian Excise Taxation procedures are normally discarded after distillation, since such product will not be good for the market.

Work Cited

Tham M.T. Basic Distillation Equipment and Operation. Retrieved on 16th September 2011 from: http://lorien.ncl.ac.uk/ming/distil/distileqp.htm, 2009.

Webb Richard. Alcohol taxation reform: considerations and options. Parliament of Australia, 20 November 2009, no. 11, 2009–10. Retrieved on 16th September 2011 from: http://alturl.com/owxhy,