# South Ave Seltzer Enters Voluntary Administration Following Tax Audit Dispute The popular Australian beverage brand seeks restructuring after an unexpected $13 million tax bill. - **Source:** [PerthNow](https://www.perthnow.com.au) - **Published:** 2026-11-11 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/43e76d6b-a132-446c-ac5f-256d4405fbf1 ## Unexpected Financial Collapse South Australian seltzer brand South Ave has entered voluntary administration following a failed voluntary tax audit. The company, which produces pre-mixed vodka and seltzers, faced an immediate demand from the ATO for $13 million in unpaid excise duties. This development occurred just days after the business celebrated its fifth anniversary. ## Audit Backfire Consequences CEO Reno Marrasso stated the company initiated the audit after receiving conflicting information regarding their excise credit status. The process revealed a significant $13 million debt, which the company had been actively paying down under a three-year plan. The ATO subsequently shortened this repayment window to just twelve months, triggering the crisis. ## Cash Flow Constraints Marrasso emphasized that a one-year repayment schedule is financially unfeasible for the growing company. Paying $1 million per month while simultaneously covering ongoing excise duties on new production would effectively destroy the business's cash flow. Consequently, the firm sought protection to restructure its obligations and maintain its rapid operational growth. ## Operational Continuity Plans Despite the administration filing, South Ave continues to operate under the control of appointed administrators. The company maintains its current staff roster of 18 employees, with no immediate job losses reported. Management remains focused on stabilizing the business while navigating the complex legal requirements of the ongoing insolvency process. ## Restructuring Through DOCA The founders are currently developing a Deed of Company Arrangement (DOCA) proposal to present to creditors. This mechanism aims to allow the original leadership team to retain control of the brand. By recapitalizing the business, the founders intend to secure necessary funds to support the next phase of their growth. ## Market Performance Context Founded in 2021, the brand has achieved significant market penetration, generating approximately $19 million in annual revenue. Sales are primarily concentrated across South Australia, Victoria, Queensland, and Western Australia. Despite the current tax-related insolvency, leadership claims the brand is experiencing its busiest period of demand since its inception. ## Regulatory and Tax Dynamics The situation highlights the risks associated with voluntary tax audits in the alcohol industry, where excise duties are strictly regulated. The ATO's decision to accelerate the repayment timeline reflects a rigid approach to recovering outstanding government revenue. This case serves as a stark example of how tax liabilities can impact operations. ## Future Growth Outlook Management views this administration period as a strategic opportunity to restructure and secure the company's long-term future. By formalizing a new repayment plan, the founders hope to resolve the debt crisis and continue their expansion. The success of this transition now depends on creditor approval of the proposed DOCA arrangement. ## Sources covering this story - https://www.perthnow.com.au/news/beloved-seltzer-brand-south-ave-plunges-into-voluntary-administration-after-tax-audit-backfires-c-23150427 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._