{"id":"F2016L01554","name":"Excise Concessional spirit approvals guidelines 2016 (No. 2)","slug":"excise-concessional-spirit-approvals-guidelines-2016-no-2","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":95216,"registerId":"commonwealth-F2016L01554-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Excise Concessional spirit approvals guidelines 2016 (No. 2)","content":"Legislative Instrument\n\nExcise concessional spirit approvals guidelines 2016 (No. 2)\n\nI, Deborah Jenkins, Acting Deputy Commissioner of Taxation, make this determination under the following provision:\n\n-   Subsection 77FF(5) of the Excise Act 1901 (Excise Act)\n\nDeborah Jenkins\n\nActing Deputy Commissioner of Taxation\n\nDated: 13/9/2016\n\n1.  Name of instrument\n\nThis determination is the Excise Concessional spirit approvals guidelines 2016 (No. 2).\n\n2. Legislative Instrument\n\nThis determination is a legislative instrument for the purposes of the Legislation Act 2003 (Legislation Act).\n\n3. Commencement\n\nThis determination commences on the day after it is registered. On commencement it replaces and repeals Excise concessional spirit approvals guidelines 2006 (No. 1) (which expires on 1 October 2016).\n\n4. Application\n\nThis determination applies to applications for approval to use spirit free of duty that is delivered under subitem 3.7 of the Schedule to the Excise Tariff Act 1921.\n\nIt applies to applications received on or after the date of commencement.\n\n5. Revoking of previous instrument\n\nExcise concessional spirit approvals guidelines 2006 (No. 1) is revoked on commencement of this determination.\n\nThe new instrument is a restatement of the previous determination which is scheduled to be repealed on 1 October 2016 under the sunsetting provisions as prescribed in Part 4 of Chapter 3 of the Legislation Act.\n\n6. Determination\n\nFor the purposes of subsection 77FF(5) of the Excise Act, the following are guidelines the CEO will follow when considering whether to grant a person an approval[\\[1\\]](#_ftn1) to use spirit for a specified industrial, manufacturing, scientific, medical, veterinary or educational purpose.\n\nApproval may be given to persons to use spirit for appropriate and specific industrial, manufacturing, scientific, medical, veterinary or educational purposes.\n\nAppropriate purposes do not include using spirit in any of the following ways:\n\n    as a beverage or in the production of a beverage (other than as an incidental input);\n    in any product (including products that are not beverages) that may be consumed for an intoxicating effect.\n    as a fuel (or a component of fuel)\n    on-supply to another person (unless expressly permitted by the CEO in an approval granted under subsection 77FF(1) of the Excise Act.\n\nAn approval may be given to use a once-off specified amount of spirit, or to use a specified amount of spirit in a calendar month or a calendar year.\n\nAn approval may specify an end date after which approval to use the spirit expires, or may be given as an ongoing approval (valid until revoked).\n\nThe CEO must be satisfied that the spirit will be used for the specified purpose, and that it is unlikely that the spirit will be used for another purpose, having regard to;\n\n    The quantity of spirit specified in the approval\n    The conditions (if any) to which the approval may be subject\n    Other matters the CEO considers to be relevant in order to reduce risk to the revenue or ensure compliance with the Excise legislation.\n\nWhen making a decision the CEO may take into account any matters relevant to determine any risks to revenue or the likelihood of compliance with the Excise legislation. For example, this may include:\n\n    whether an applicant is fit and proper for being entrusted with the spirit (an entity’s prior tax compliance history and financial resources may be relevant)\n    whether the spirit will be used in the course or furtherance of an enterprise that the applicant carries on[\\[2\\]](#_ftn2)\n    arrangements for the storage and handling of the spirit\n    the applicant’s ability to keep appropriate records, and provide access to those records when required\n    the likelihood of the spirit being used for a purpose other than the approved purpose.\n\nApplications for approval should be made in writing and should provide information necessary to enable the CEO to make a decision. This includes the applicant’s identifying details, particulars about the quantity, type and strength of spirit to be used and any other information the CEO considers relevant in making a decision.\n\nA person who receives spirit free of duty under an approval may be required to account for its use. If the person fails to account to the satisfaction of the CEO, they may become liable to pay an amount equal to the duty that would have been payable on the spirit if there had been no approval[\\[3\\]](#_ftn3).\n\nA decision to refuse an application for approval, or to impose conditions on an approval, is a reviewable decision (see subsection 162C(1) of the Excise Act).\n\n---\n\n[\\[1\\]](#_ftnref1) Under subsection 77FF(1) Excise Act\n\n[\\[2\\]](#_ftnref2) The expression ‘in the course or furtherance of carrying on an enterprise’ is used in the A New Tax System (Australian Business Number) Act 1999 and has the same meaning in this instrument as in that Act.\n\n[\\[3\\]](#_ftnref3) Subsection 77FH(3) of the Excise Act.","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument is stated to be a restatement of the 2006 guidelines and replaces that instrument on commencement. It continues to apply to approvals under subitem 3.7 of the Excise Tariff Act and maintains the same categories of permitted and excluded uses, approval types, and accountability mechanisms."},"complexity_factors":["Cross-references to other statutes and provisions (Excise Act subsection 77FF(5), Excise Tariff Act subitem 3.7, A New Tax System (ABN) Act meaning of 'in the course or furtherance of carrying on an enterprise') increase legal linkage and require look-through.","Significant administrative discretion vested in the CEO to weigh risks to revenue and compliance, leading to fact-specific assessments.","Multiple approval modalities (one-off amounts, monthly or yearly amounts, time-limited or ongoing approvals) increase operational permutations.","Clear exclusions (beverages, intoxicating uses, fuels, on‑supply) reduce ambiguity but require applicants to establish intended use and supply chains.","Compliance and enforcement mechanisms (record-keeping, storage arrangements, requirement to account, and potential liability equal to unpaid duty) impose ongoing administrative burdens and financial risk on recipients.","Decisions to refuse or impose conditions are reviewable, adding an appeals pathway and potential administrative delay.","Replacement and sunsetting mechanics (revocation of 2006 instrument; applies to applications from commencement) require attention to transitional timing."],"plain_english_summary":"These guidelines tell the CEO how to decide applications to use spirit free of excise duty for specified industrial, manufacturing, scientific, medical, veterinary or educational purposes. They replace the 2006 guidelines and apply to applications received from commencement.\n\nThey identify excluded uses (for example beverages, intoxicating products, fuels and on‑supply), set factors the CEO may consider (quantity, storage, record‑keeping, applicant fitness), allow time‑limited or ongoing approvals, and make failure to account potentially trigger duty liability. Decisions to refuse or impose conditions are reviewable."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument is explicitly a restatement of the 2006 guidelines, updated for sunsetting purposes. It maintains the same scope: regulating access to duty-free spirit for specific non-beverage purposes. No expansion of purpose or substantive change in coverage."},"complexity_factors":["Short document (approximately 1,000 words)","Only 6 formal sections with clear numbering","Minimal defined terms (relies on external definitions from the Excise Act 1901 and Excise Tariff Act 1921)","Straightforward conditional logic (if/then structure for approvals and consequences)","Single layer of exceptions (the four prohibited uses listed in section 6)","No nested cross-references beyond basic statutory citations","Plain language drafting with bullet points for readability"],"plain_english_summary":"This instrument lets businesses and individuals obtain Tax Office (the Commissioner’s) approval to use high‑strength alcohol duty‑free for legitimate non‑drinking purposes (e.g., industrial, scientific, medical, veterinary, educational). The Commissioner assesses need, trustworthiness, storage and recordkeeping; misuse or inability to prove approved use triggers excise liability. It matters because it enables lawful access to untaxed spirit for genuine work while protecting revenue from abuse, with appeal rights against refusals or conditions."}},"importantCases":[],"_links":{"self":"/api/acts/excise-concessional-spirit-approvals-guidelines-2016-no-2","history":"/api/acts/excise-concessional-spirit-approvals-guidelines-2016-no-2/history","analysis":"/api/acts/excise-concessional-spirit-approvals-guidelines-2016-no-2/analysis","conflicts":"/api/acts/excise-concessional-spirit-approvals-guidelines-2016-no-2/conflicts","importantCases":"/api/acts/excise-concessional-spirit-approvals-guidelines-2016-no-2/important-cases","documents":"/api/acts/excise-concessional-spirit-approvals-guidelines-2016-no-2/documents"}}