Issue
Can either iso-propyl alcohol or propylene glycol be used in the production of a beverage that is a 'grape wine product' as defined in section 31-3 of the A New Tax System (Wine Equalisation Tax) Act 1999 (the WET Act)?
Decision
Yes. Iso-propyl alcohol or propylene glycol can be used in the production of a beverage that is a 'grape wine product' as defined in section 31-3 of the WET Act.
Facts
Flavours that contain iso-propyl alcohol or propylene glycol are used in the manufacture of beverages.
Reasons for Decision
A 'grape wine product' is defined in section 31-3 of the WET Act as a beverage that: (a) contains at least 700 millilitres of grape wine per litre; and (b) has not had added to it, at any time, any ethyl alcohol from any other source, except: (i) grape spirit; or (ii) alcohol used in preparing vegetable extracts (including spices, herbs and grasses); and (c) contains at least 8% by volume of ethyl alcohol, but not more than 22% by volume of ethyl alcohol; and (d) complies with any requirements of the regulations, made for the purposes of section 31-8, relating to grape wine products.
From the definition it is evident that ethyl alcohol (other than ethyl alcohol derived from grape spirit or ethyl alcohol used in preparing vegetable extracts) is the only substance which, when added to a beverage, precludes the beverage from satisfying the requirements for a 'grape wine product'.
Iso-propyl alcohol and propylene glycol each have a different chemical formula from ethyl alcohol. The chemical formula for each chemical compound is as follows: Ethyl alcohol C2 H5 OH Iso-propyl alcohol C3 H7 OH Propylene glycol C3 H6 (OH)2
Ethyl alcohol | C2 H5 OH
Iso-propyl alcohol | C3 H7 OH
Propylene glycol | C3 H6 (OH)2
Clearly iso-propyl alcohol and propylene glycol are different chemical compounds from ethyl alcohol. It follows that they may be added to a beverage without the beverage being precluded from satisfying the definition of 'grape wine product'.