{"id":"F2016L01523","name":"Excise (Denatured spirits) Determination 2016 (No.3)","slug":"excise-denatured-spirits-determination-2016-no-3","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":95174,"registerId":"commonwealth-F2016L01523-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Excise (Denatured spirits) Determination 2016 (No.3)","content":"Legislative Instrument\n\nExcise (Denatured spirits) Determination 2016 (No. 3)\n\nI, Deborah Jenkins, Acting Deputy Commissioner of Taxation, make this determination under the following provision:\n\n    Subsection 77FG(1) of the Excise Act 1901 (Excise Act).\n\nDeborah Jenkins\n\nActing Deputy Commissioner of Taxation\n\nDated: 13 September 2016\n\n1.  Name of instrument\n\nThis determination may be cited as the Excise (Denatured spirits) Determination 2016 (No.3).\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 (Denatured spirits) Determination 2006 (No. 2) (which expires on 1 October 2016).\n\n4. Application\n\nThis determination applies to spirit delivered for home consumption on or after the date of commencement.\n\nIt applies to applications received on or after the date of commencement.\n\n5. Revoking of previous instrument\n\nExcise (Denatured spirits) Determination 2006 (No. 2) 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of this determination.\n\nThe new instrument is a restatement of the previous determination which is scheduled to be repealed on 1 October 2016 under the sunsetting provisions as prescribed in Part 4 of Chapter 3 of the Legislation Act.\n\n6.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\nSection 77FG of the Excise Act allows the CEO to determine a formula for denaturing spirit for the purposes of subitem 3.8 of the Excise Tariff.\n\nSpirit denatured to the formula may be delivered into home consumption under subitem 3.8 at a free rate of duty and pass out of the CEO’s control.\n\n7. The Formula\n\nThe formula for denaturing spirit is:\n\nSpirit plus at least one denaturant listed in the Schedule at or above the minimum concentration specified.\n\nThe minimum concentration specified in the Schedule is the minimum concentration for adding to 100% pure ethanol. If the spirit is less than 100% ethanol, the minimum concentration is to be adjusted accordingly.\n\nExample: spirit consisting of 80% ethanol may be denatured according to the formula by the addition of 0.80% v/v n-propanol.\n\nThis determination allows licensed entities to supply ethyl alcohol that is denatured to this formula at a free rate of duty.\n\n8. Definitions\n\n    In this determination:\n\n    \\- CAS registry number refers to the unique number allocated to the chemical substance in the registry of the Chemical Abstracts Service, a division of the American Chemical Society.\n\n    \\- CEO means the Commissioner of Taxation (see subsection 4(1) of the Excise Act).\n\n    \\- Excise tariff means the Schedule to the Excise Tariff Act 1921.\n\n    \\- ppm means parts per million.\n\n    \\- v/v means volume to volume.\n\n    \\- w/w means weight to weight.\n\n  \n\nSCHEDULE\n\n| Item | Denaturant                         | CAS registry number | Minimum concentration for 100% ethanol |\n| ---- | ---------------------------------- | ------------------- | -------------------------------------- |\n| 1    | acetaldehyde                       | 75-07-0             | 1.0% v/v                               |\n| 2    | n-propanol                         | 71-23-8             | 1.0% v/v                               |\n| 3    | n-propyl acetate                   | 109-60-4            | 1.0% v/v                               |\n| 4    | acetone                            | 67-64-1             | 2.0% v/v                               |\n| 5    | denatonium benzoate                | 3734-33-6           | 5 ppm                                  |\n| 6    | ethyl acetate                      | 141-78-6            | 1.0% v/v                               |\n| 7    | propylene glycol mono-methyl ether | 107-98-2            | 1.0% v/v                               |\n| 8    | sodium nitrite                     | 7632-00-0           | 0.25% v/v                              |\n| 9    | methyl ethyl ketone                | 78-93-3             | 0.5% v/v                               |\n| 10   | methoxy propyl acetate             | 108-65-6            | 0.5% v/v                               |\n| 11   | methanol                           | 67-56-1             | 5.0% v/v                               |\n| 12   | isopropanol                        | 67-63-0             | 5.0% v/v                               |\n| 13   | tertiary butyl alcohol             | 75-65-0             | 0.25% v/v                              |\n| 14   | methyl isobutyl ketone             | 108-10-1            | 0.25% v/v                              |\n| 15   | n-hexane                           | 110-54-3            | 1.0% v/v                               |\n| 16   | ethyl ether                        | 60-29-7             | 1.0% v/v                               |\n| 17   | propylene glycol                   | 57-55-6             | 20.0% v/v                              |\n| 18   | sodium hydroxide                   | 1310-73-2           | 0.25% w/w                              |\n| 19   | sodium molybdate                   | 7631-95-0           | 0.25% w/w                              |\n| 20   | sodium tolytriazole                | 64665-57-2          | 0.25% w/w                              |","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The instrument expressly restates and replaces the Excise (Denatured spirits) Determination 2006 (No. 2) (clause 5). It applies to spirit delivered for home consumption and to applications received on or after commencement (clause 4). The text presents this as a replacement rather than an expansion of scope, with no new classes of goods or recipients added in the instrument itself."},"complexity_factors":["Legal linkage to other statutes: relies on subsection 77FG(1) of the Excise Act 1901 to authorise the CEO to set the formula and operates with Excise Tariff subitem 3.8 (clause 6).","Technical chemical specifications: schedule lists 20 different denaturants with CAS numbers and differing units (v/v, w/w, ppm) requiring accurate measurement (Schedule; clause 8 definitions).","Adjustment rule for non‑100% ethanol: minimum concentrations must be proportionally adjusted if spirit is less than 100% ethanol (clause 7), creating a calculation/compliance step.","Operational compliance burden on suppliers: licensed entities must ensure formulations meet the schedule exactly to obtain duty‑free treatment (clause 7).","Instrument lifecycle and continuity: revokes and restates the 2006 Determination and commences on registration, so transitional and timing matters matter for affected suppliers (clauses 3–5)."],"plain_english_summary":"Sets the exact formula for denaturing ethyl alcohol by listing permitted denaturants (with CAS numbers) and minimum concentrations. Alcohol denatured to this formula may be delivered into home consumption free of excise under Excise Tariff subitem 3.8. \n\nIt affects licensed suppliers and handlers of denatured ethanol: suppliers must add and measure the listed denaturants (and adjust minimums if the ethanol is less than 100%) to qualify for duty‑free supply. The Commissioner (CEO) administers the rule and this instrument replaces the 2006 determination."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This is a straightforward restatement of a previous determination (2006 No. 2) made necessary by legislative sunsetting requirements. The scope remains identical: prescribing denaturant formulas for excise-free industrial alcohol. The document explicitly states it is a 'restatement' with no policy changes."},"complexity_factors":["Only 8 defined terms, all straightforward technical abbreviations","Single operative formula with one simple adjustment rule (proportional scaling for non-100% ethanol)","No cross-references to other legislation beyond the enabling provision (section 77FG)","Flat structure: no Parts, Divisions, or nested sections","Schedule contains a simple lookup table with 4 columns and 20 rows","No conditional logic, exceptions, or temporal limitations beyond the commencement date"],"plain_english_summary":"This instrument defines how alcohol must be chemically “denatured” so it’s exempt from excise—specifying that industrial spirit must contain at least one approved denaturant at the required concentration. It affects licensed manufacturers, suppliers and businesses using denatured alcohol and is administered by the ATO. The rule lets industry buy lower‑taxed alcohol for legitimate uses while preventing tax avoidance by keeping denatured product undrinkable."}},"importantCases":[],"_links":{"self":"/api/acts/excise-denatured-spirits-determination-2016-no-3","history":"/api/acts/excise-denatured-spirits-determination-2016-no-3/history","analysis":"/api/acts/excise-denatured-spirits-determination-2016-no-3/analysis","conflicts":"/api/acts/excise-denatured-spirits-determination-2016-no-3/conflicts","importantCases":"/api/acts/excise-denatured-spirits-determination-2016-no-3/important-cases","documents":"/api/acts/excise-denatured-spirits-determination-2016-no-3/documents"}}