The ATO's core expectation is simple: you should be able to account for every litre of alcohol you produce. In practice that means keeping a handful of record types accurately and consistently.
Production records
What you manufactured, when, and the resulting volume and strength. Each distillation run should capture its hearts volume and ABV — the basis of your LAL and excise.
Stock on hand
Bulk spirit in tanks and casks, plus finished goods. Track bulk spirit in litres of pure alcohol (LAL) so inventory and excise stay aligned. See the cask management guide.
Movements
Every movement of spirit: entered for home consumption, exported, transferred under bond, taken as samples, or destroyed/lost. Each needs a record.
Excise calculations
For each settlement period: LAL, the rate applied, remission claimed and net duty payable.
The reconciliation test
If you can reconcile what you made against what you sold, exported, sampled and lost, you're audit-ready. Gaps are what attract attention.
The easiest way to keep all of this straight is to capture it as you go rather than reconstruct it monthly — the principle behind our ATO excise compliance guide.
This article is general information, not tax or legal advice. Confirm your obligations with the ATO or a qualified adviser.
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