South Ave seltzer brand collapses with $11m tax debt to ATO
South Ave is an Adelaide alcoholic seltzer brand. The company entered voluntary administration on November 6. It reportedly owes about $11 million in unpaid excise duties.
South Ave entered voluntary administration on November 6 after a dispute with the Australian Tax Office over repayment timelines. Co-founder Reno Marrasso said the company found a $13 million excise debt after a voluntary audit last year.
The company had been told it was in credit. The business negotiated a three-year repayment plan and paid down part of the debt.
The ATO later cut the timeline to 12 months. Marrasso said this would have destroyed the company's cash flow.
About $11 million remained owing when administrators were appointed. South Ave had sponsored A-League football clubs and major events including LIV Golf.
- 13 million dollars
- Excise debt discovered
- 11 million dollars
- Amount owing at administration
- 12 months
- Repayment period cut to
- November 6
- Administration date
Why it mattersThe collapse shows how risky tax disputes can be for growing Australian businesses. It also shows the impact of sudden payment deadlines.
AustraliaSouth Australian startup loses five years of growth over tax disagreement; consumers lose a local brand.
✓ Claims checked against the source. checked 5 h ago
