24 November 2008

Australia could re-define beer to beat tax loophole

Australia could change its legal definition of beer in order to stop brewers using a tax loophole to pass off sweet, pre-mixed alcoholic drinks as the thirst-slaking brew, according to a report.

Some drinks companies have sidestepped the tax by producing drinks brewed using the same methods as beer but with all the "beer characteristics" removed and sugar and colouring added, the Sun-Herald newspaper said.

The products, known as "malternatives", are also packaged like a flavoured beverage and sell for as little as two Australian dollars (1.25 US) a drink -- significantly cheaper than the "alcopops" that fall under the new tax regime.

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