Learn all the regulations around purchasing Ethanol in Australia
Procuring ethanol in Australia involves a multifaceted journey, influenced by a myriad of regulatory parameters that encompass public safety and fiscal obligations. A versatile chemical compound, holds pivotal roles in various sectors, from industrial applications to the formulation of alcoholic beverages. In order to navigate the intricate web of Australian Taxation Office (ATO) guidelines and other pertinent regulations, individuals and businesses seeking procurement must remain well-versed in the specific requirements, exemptions, and tax implications associated with their intended use. This comprehensive exploration delves into the pivotal facets of purchasing ethanol in Australia, with a particular emphasis on key considerations that individuals and entities must bear in mind when sourcing this vital substance, including insights from ASIS Scientific, one of the leading chemical suppliers in Australia. Follow this article on Everything you need to know about purchasing Ethanol
So you need Ethanol, do you need an excise license or not?
Needing an excise license from the Australian Taxation Office for Ethanol is only required when ethanol is purchased under its undenatured state. Undenatured and denatured ethanol are two distinct forms of alcohol, primarily differing in their chemical composition and applications. Undenatured ethanol, also known as pure or non-denatured ethanol, is ethyl alcohol that contains little to no additives or denaturants. Denatured, on the other hand, to which denaturants have been added to make it unsuitable for consumption.
In Australia, a license for ethanol is typically required by individuals or businesses involved in certain activities related to the production, import, sale, or distribution of ethanol. The specific type of license you need may vary depending on the intended use and other factors. Here are some common scenarios in which a license may be required:
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- Alcohol Manufacturer or Distillery License: If you are involved in the production of alcoholic beverages, such as spirits, you will typically need a license from the relevant state or territory authority. This license authorizes you to manufacture, store, and sell alcoholic products containing ethanol.
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- Importer’s License: Importing into Australia often requires an import license. This license is necessary to ensure compliance with customs and excise regulations and to pay any applicable import duties or excise taxes.
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- Industrial Use: Some industrial applications, like pharmaceuticals, cosmetics, or chemical manufacturing, may require a license or permits for the handling, storage, and use of ethanol. The requirements may vary based on the state or territory in which you operate.
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- Fuel: If you are involved in the production or distribution of ethanol for use as a fuel additive or as a fuel in itself, you may need licenses or permits related to the fuel industry and environmental regulations.
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- Research and Laboratory Use: Laboratories and research facilities for scientific or research purposes may need permits or licenses, depending on the volume used and local regulations.
ASIS Scientific is a reputable supplier of a wide range of laboratory and scientific products, including both undenatured and denatured ethanol. They can provide the necessary information and products to meet the needs of various industries and scientific research. When procuring denatured ethanol from ASIS Scientific for industrial use, one can generally avoid excise duty, while undenatured for non-beverage purposes may require compliance with ATO regulations.
Denatured or Undenatured Ethanol?
Undenatured and denatured ethanol are two distinct forms of alcohol, primarily differing in their chemical composition and applications. The choice between these two types of ethanol is essential because it impacts their use, taxation, and regulatory requirements.
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- Undenatured Ethanol: Undenatured ethanol may be subject to excise duty if it is intended for use in alcoholic beverages. However, if it is for non-beverage industrial or scientific use, it can be exempt from excise duty or subject to reduced rates, subject to approval by the Australian Taxation Office (ATO). Consent from the ATO may be required depending on the intended use and applicable exemptions.
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- Denatured Ethanol: Denatured ethanol is typically exempt from the excise duty on alcohol because it is not intended for human consumption. However, specific regulations governing the denaturing process must be followed to maintain its non-drinkable status.
Undenatured:
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- Chemical Composition: Undenatured , also known as pure ethanol or non-denatured, contains little to no additives or denaturants. It is chemically pure ethyl alcohol.
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- Applications: Undenatured is typically used in applications where the purity of the alcohol is crucial. Some common uses include:
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- Pharmaceuticals: Undenatured is used in the production of medicines and medical products.
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- Cosmetics: It is employed in the formulation of cosmetics and personal care products.
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- Food Industry: Undenatured may be used in food production or processing, especially in flavor extracts and food additives.
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- Laboratory and Scientific Research: It serves as a high-purity laboratory reagent and solvent.
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- Applications: Undenatured is typically used in applications where the purity of the alcohol is crucial. Some common uses include:
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- Taxation: Undenatured may be subject to excise duty if it is intended for use in alcoholic beverages. However, if it is for non-beverage industrial or scientific use, it can be exempt from excise duty or subject to reduced rates, subject to approval by the Australian Taxation Office (ATO).
Denatured:
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- Chemical Composition: Denatured is to which denaturants have been added to make it unsuitable for human consumption. These denaturants often include chemicals like methanol, isopropanol, or other substances, which give the ethanol a foul taste, odor, or color.
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- Applications: Denatured is specifically formulated to be unsuitable for consumption and, therefore, is mainly used for industrial and manufacturing purposes, including:
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- Solvents: It is employed as a solvent in various industries, such as paint, ink, and cleaning products.
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- Fuel Additive: Denatured is sometimes used as a fuel additive.
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- Cleaning Products: It is a common ingredient in cleaning solutions.
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- Industrial Processes: Denatured is used in numerous manufacturing processes.
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- Applications: Denatured is specifically formulated to be unsuitable for consumption and, therefore, is mainly used for industrial and manufacturing purposes, including:
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- Taxation: Denatured is generally exempt from excise duty because it is not intended for human consumption. However, specific regulations governing the denaturing process must be followed to maintain its non-drinkable status.
Examples of Ethanol you can purchase from ASIS Scientific
Undenatured https://asisscientific.com.au/product/ethanol-undenatured-100-ar/
Denatured https://asisscientific.com.au/product/absolute-alcohol-100-denatured-lr-packed-in-hdpe-drum/
Current rates for Excise per Litre as of 27/10/2023
$101.85 per litre as of 15/04/2024. Please note this is subject to change and is the excise license fee for purchases of undenatured ethanol in Australia. Please refer to the ATO website or contact the ATO for more information.
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