Australian Distillers participated in the pilot led by Convergence Tech to deliver a world-first Australian blockchain pilot that stands to radically overhaul a 100 year-old tax system and has the potential to recover at least $45m annually in lost tax revenue, based on KPMG analysis.
The National Blockchain Pilot has successfully demonstrated the potential of blockchain technology to improve tax revenues, combat fraud and enhance the productivity and competitiveness of the spirits industry on the global stage.
Importantly for our Members, once implemented, the capability will also help protect honest distillers from illicit competition selling spirits products at unsustainable price points or earning unfair margins.
We commend our Members, Government and Convergence.Tech for their close collaboration during the Pilot, demonstrating the benefits that public-private partnerships can achieve. We encourage the Australian Government to move forward with a full implementation of this capability to deliver these significant benefits for our Members, taxpayers and the broader economy.
“From a distiller’s perspective, the Blockchain Excise Pilot has the potential to streamline excise administration, reduce counterfeit product and parallel importation risks, lay the foundations for a “trusted trader” style arrangement with the ATO, and simply provide confidence to producers, as well as their investors, customers, and other stakeholders, that their excise obligations are 100% accurate, compliant and up to date. “
William Edwards - Founder at Archie Rose Distilling Co.
“By making sure there is compliance it means we won’t have rogue operators, creating a level playing field for everyone. And that’s probably the most exciting thing – the transparency and dynamism of the technology. It’s this capability and opportunity to unlock
more significant improvements that will drive strong uptake of the technology throughout the industry”
Paul McLeay - Chief Executive Officer of the Australian Distillers Association
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Australian Distillers Association
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