Issue
Can water, yeast cultures, diammonium phosphate, thiamine, tartaric acid and sucrose be used in the manufacture of a beverage that is 'mead' for the purposes of section 31-1 in A New Tax System (Wine Equalisation Tax) Act 1999 (WET Act)?
Decision
Yes. Water, yeast cultures, diammonium phosphate, thiamine, tartaric acid and sucrose can be used in the manufacture of a beverage that is 'mead' for the purposes of section 31-1 of the WET Act.
Facts
A manufacturer of mead uses various ingredients including water, yeast cultures, diammonium phosphate, thiamine, tartaric acid and sucrose.
Reasons for Decision
Mead is defined in section 31-6 of the WET Act as a beverage that contains more than 1.15% by volume of ethyl alcohol and: (a) is the product of the complete or partial fermentation of honey; and (b) has not had added to it, at any time, any ethyl alcohol from any other source, except as specified in the regulations; and (c) has not had added to it, at any time, any liquor or substance (other than honey) that gives colour or flavour, except as specified in the regulations; and (d) complies with any requirements of the regulations, made for the purposes of section 31-8, relating to mead.
The A New Tax System (Wine Equalisation Tax) Regulations 2000 (the Regulations) specify that for the purposes of paragraph (c) of the above definition certain ingredients may be added to mead even though they give colour or flavour. The Regulations also specify when these ingredients may be added. The Regulations provide that: • herbs or spices may be added during or after the production of mead; • caramel may be added to mead after the fermentation process; and • subject to specified constraints, fruit or product derived entirely from fruit may be used in the production of mead.
Water, yeast cultures, diammonium phosphate, thiamine, tartaric acid and sucrose are not considered to give colour or flavour when added to mead. Accordingly, these ingredients may be added without affecting the ability of the beverage to satisfy the definition of mead. Each of these ingredients is considered below: Water Water is colourless and is without flavour. The addition of water does not give colour or flavour to the mead. Yeast cultures Yeast cultures assist in the fermentation process. They are not considered to give colour or flavour to the mead. Diammonium phosphate and thiamine Diammonium phosphate and thiamine provide nutrients which assist in the fermentation process and are commonly used in the wine making process. They are not considered to give colour or flavour to the mead. Tartaric acid and sucrose Tartaric acid is used to adjust the ph balance of the mead while sucrose is added to adjust the baume. The addition of acid or sucrose allows the sharpness or sweetness of the mead to be adjusted. They are not considered to give colour or flavour to the mead.
Accordingly, water, yeast cultures, diammonium phosphate, thiamine, tartaric acid and sucrose can be used in the manufacture of a beverage that is 'mead' for the purposes of section 31-1 of the WET Act.
Amendment History
Date of amendment Part Comment 29 November 2013 Legislative References, Related Public Rulings Updated WET rulings references.
Date of amendment | Part | Comment
29 November 2013 | Legislative References, Related Public Rulings | Updated WET rulings references.