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Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 3:15 pm
by Matt_Pl
Gday All,

It Saddens me that there are no distilleries in the Northern Territory.

I understand that the NT is remote with a small population ~140K but I would have thought we would have at least 1 Distillery I could visit??

Stupid question, but how does someone who is passionate about distilling move from a hobby setup to a business?

Do people who have completed this transition recommend any books or what they feel would be necessary training to develop a commercial understanding of cuts etc?
I couldn't imagine a commercial distillery collects in 300ml glass containers and lets their spirit age for 2 days.

Thanks all.

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 3:28 pm
by YarraRanges
Federation Uni in Victoria do a short distilling course each year. I did one 2 years ago. They get experts in from around the world and on the last day have an excise officer from the tax department advising us on our responsibilities. You also have to pass a "good person test", if you have any criminal charges in your history then forget all about it.
Look up the government legislation on excise tax on ethanol. You'll need invoice financing to start off as you must pay the excise within 5 days (not working days) of the alcohol leaving your bonded area. That is the real killer of distillery startups.

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 3:38 pm
by Georgio
Matt_Pl wrote:It Saddens me that there are no distilleries in the Northern Territory.

:text-+1: Should be more distilleries in Australia. From my understanding we in Australia charge local manufacturers more excise on a single liter of alcohol, than an importer can purchase a bottle of say Jim Beam, re sell and make a profit.

We should be encouraging local supply and entrepreneurs, not discourage with unfair taxes. :violence-smack:

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 4:05 pm
by Matt_Pl
Hi Guys,

Ive actually done a fair bit of research on the legislative requirements of distilling. I am actually after more knowledge in relation to producing the spirit on a commercial scale rather than my hobby in the backyard.

For example Cuts and Fractions on a much larger scale.

Yes its True, its actually cheaper to move to New Zealand, produce your spirits there and import it to Australia.

Last time I looked it was approximately $26 a 700ml bottle in Excise of 40% ABV spirit produced which goes straight to the tax man.

If eligible, you can claim a refund of 60% of the excise duty you have paid for your distilled products, to a maximum of $30,000 per financial year.
Excise rates for alcohol are indexed twice a year in line with the consumer price index (CPI) – generally on 1 February (5 February in 2018) and 1 August.
The formatting wont copy over but the rates of excise are available in Table 3.
https://www.ato.gov.au/Business/Excise- ... r-alcohol/

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 4:10 pm
by RC Al
The raw material costs would be higher as pretty much all the ingredients would have to be imported

Solar steam generation would be more viable there than anywhere else

What do the std spirits go for up there in a bottle shop?

You most likely would have to combine it with food and get the tourists in

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 4:14 pm
by Georgio
Hey Matt,

Last time I checked with alcohol and tobacco excise mate I thought the rate for a "craft" distiller was closer to $80 a liter at 40%.

Not sure if somethings changed but that was in February this year.

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 4:18 pm
by Matt_Pl
In regards to competing with the local market it would be almost impossible unless I created a factious story or a sailor who fought off crocs to save his last bottle of rum...

I could walk into a bottle shop and buy a 10 pack of premix spirits for $26 or vodka for $50.

I agree I would have to offer food etc (which wouldn't be the core business). Id much prefer a small bar and distillery tours to supplement income.

The other option is local supply, NT Businesses generally support each other rather well, so local bars/restaurants would get behind a local GIN/Vodka while the whiskey was ageing but I believe it would certainly be a tough gig to compete with the Jim, Jacks and Vodka at the bottle shops.

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 4:19 pm
by Matt_Pl
Georgio wrote:Hey Matt,

Last time I checked with alcohol and tobacco excise mate I thought the rate for a "craft" distiller was closer to $80 a liter at 40%.

Not sure if somethings changed but that was in February this year.


I was under the impression that those figures were based on a litre of alcohol at 100% ABV.

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 4:23 pm
by bluc
:text-+1:

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 4:26 pm
by Matt_Pl
My current understanding of Excise in Australia is:
Referencing the following ATO link:
https://www.ato.gov.au/Business/Excise- ... r-alcohol/

According to Table 3, Tarrif item 3.2: Other excisable beverages exceeding 10% by volume of alcohol; and noting that "Excise rates are expressed per litre of alcohol (LAL) for alcoholic beverages. The volume of alcohol subject to excise duty is calculated by multiplying the actual volume of product by its alcoholic strength. For example, 3,000 litres of spirit with an alcohol strength of 3.3% will have 99 LAL."

Excise of 1 litre of 40% ABV = (From the 1st August 2018) would be equal to 40% or $84.51 per litre which equates to $33.54 per litre and $23.48 c per 700 ml bottle.

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 4:42 pm
by Georgio
I came to the same conclusion after looking at the same website. I gave the department a call and they advised it was around $80 per liter @ 40%.

It maybe worth giving them a call mate. They were quite helpful (I would be too if I was going to collect $80 a liter).

Excellent news if I misunderstood though.

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 7:55 pm
by Professor Green
Matt_Pl wrote:
Georgio wrote:Hey Matt,

Last time I checked with alcohol and tobacco excise mate I thought the rate for a "craft" distiller was closer to $80 a liter at 40%.

Not sure if somethings changed but that was in February this year.


I was under the impression that those figures were based on a litre of alcohol at 100% ABV.


It is.

Current excise rate is $84.51 per litre of alcohol @ 100% (LAL). This puts excise on a 700ml bottle of 40% vodka at $23.94.

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 8:12 pm
by Georgio
Rodger that. Obviously misunderstood.

Re: Why No Northern Territory Distilleries ?

PostPosted: Fri Aug 24, 2018 11:59 pm
by Sam.
NT got fuck all ingredients

If you can make a crocodile spirit I would be all ears

Re: Why No Northern Territory Distilleries ?

PostPosted: Sat Aug 25, 2018 12:47 am
by Matt_Pl
Apparently Crocodile fat doesnt contain much sugar either : (

im farked.,..

Re: Why No Northern Territory Distilleries ?

PostPosted: Sat Aug 25, 2018 1:16 am
by RC Al
Maybe you could put some croc fat in a Carter head
Savory flavored vodka is a thing these days :D

Mmmm salty chicken vodka x_x

Re: Why No Northern Territory Distilleries ?

PostPosted: Sat Aug 25, 2018 9:41 am
by EziTasting
:laughing-rolling:

Re: Why No Northern Territory Distilleries ?

PostPosted: Sat Aug 25, 2018 9:44 am
by EziTasting
Well, I guess your either going to be a hobbyist until you leave the NT or you’re going to have to get more creative to become the FIRST boutique Distiller!

You just need to be more creative and ‘find’ what is available in commercial qty in the NT!

NO just means an opportunity that no one has thought of yet... remember the sheep/goat farmer that’s used the whey from those animals to make vodka and whisky....

Re: Why No Northern Territory Distilleries ?

PostPosted: Sat Aug 25, 2018 11:59 am
by RC Al
Maybe you could try the Bush Tucker angle, lots of native fruits from the top end are getting good press lately
Got any prickly pear up there? That's full of sugar

Re: Why No Northern Territory Distilleries ?

PostPosted: Sat Aug 25, 2018 4:51 pm
by warramungas
I'd say that boutique distilleries thrive in 'nice' places with the gimmick angle. I.e. Winery region (with related tourism), high fruit growing area, untouched wilderness, super clean water, cane growing area (for rum), etcetera etcetera.
NT really doesn't have that much going for it (from the boutique distillery angle).
You need some sort of gimmick or sales spiel that says "mines better because....."
As stated bush tucker might be a going concern but mass production is not something bush tucker is good at.
Plus they'd possibly need to import a lot of their supplies which may cost more making their product less competitive.