To Excise
and Beyond.

A world-first pilot project.  Liberate industry from red-tape, with potential to recover hundreds of millions of tax dollars lost to illicit and erroneous activities.  A solution applicable to other excisable goods.
01
Background.
  • The beer and spirits industry in Australia generates nearly $6bn AUD tax revenue to the Commonwealth Government.
  • In 2018/19 the alcohol tax gap - tax due but not recovered -  was estimated at 9%, $582m AUD.
  • The Australian spirits industry is required to comply with complex processes to enable the tracking of this valuable commodity, to ensure compliance and remittance of excise. This is a significant administrative burden.
  • We were awarded a grant from the Australian Government, as part of the Blockchain Pilot Program.
The solution.
  • In consultation with industry and government, we designed and built a supply chain and excise traceability pilot using blockchain.
  • ANZ bank’s Australian dollar stablecoin (A$DC) demonstrated that the movement of the commodity can trigger the settlement and scheduling of excise obligations.
Our partners.

"Trust is a revolutionary force. Where trust exists you can improve systems for everyone, whether they be a start-up, a global business or a regulator. All of it ultimately benefits the national economy."

Chami Akmeemana,
CEO, Convergence.Tech
02
Blockchain in the supply chain.

Pure litres of alcohol (LALs) are tokenised into a commodity stablecoin. These are nested within NFTs representing stills, vats, casks/barrels, crates and bottles.  These are traced, and actions triggered, through the full supply chain.

Revolutionizing excise tax -
Startup Daily interview.

100 year-old tax meets blockchain. Doug Campbell spoke with Startup Daily about what happens when trust & transparency are added to supply chains.

04
Projected benefits.
  • Recover at least $45m annually in lost tax revenue, with the potential to recover hundreds of millions of dollars by reducing illicit and erroneous activities.
  • Unit level traceability provides distillers and producers  with provenance and brand protection.
  • Enables a Global and Domestic Trusted Distiller Program that could lead to privileged trading benefits and a significant reduction in excise administrative burden.
  • Open up a new commodities marketplace, changing the tax and compliance systems from simply being a recording system, to a potential revenue and capital generating partnership for both Government and local producers.
News and resources.