A South Australian man has been reported for allegedly making and selling alcohol without a licence after police uncovered about 800 litres of homemade alcohol at his property.

Key points: The Kangaroo Island man's property was searched by police on Wednesday

The Kangaroo Island man's property was searched by police on Wednesday Police said they received information about the property via Crime Stoppers

Police said they received information about the property via Crime Stoppers Police said manufacturing alcohol can have serious health consequences

Police said investigators from the SA Police Licensing Enforcement Branch (LEB) conducted a search of the man's property on Kangaroo Island on Wednesday.

They had received information about the address via Crime Stoppers and the 64-year-old man could now face a hefty fine.

Chief Inspector Greg Hutchins said there were laws in place in Australia which restricted the manufacture, supply, sale, promotion and consumption of alcohol.

"It is illegal to use a still (of any capacity) to distil alcohol, for example spirits, without an excise manufacturer licence," police said.

"The man was reported for selling/supplying liquor without being licensed under the Liquor Licensing Act, an offence which carries a maximum penalty of $20,000 for a first offence."

According to information on SA Health's website, people can face penalties of up to $85,000 or more, or two years in jail for distilling alcohol without a licence.

Police searched the property and located 800 litres of alcohol. ( SA Police )

It is also illegal to buy, make, possess, or sell a still without permission from the Australian Taxation Office, if it has a capacity of more than five litres.

Police said the alcohol allegedly found at the man's property had been seized pending the outcome of any court action and he was expected to appear in court at a later date.

Potential for serious health consequences

Chief Inspector Hutchins said in addition to legal issues, manufacturing alcohol in uncontrolled circumstances could have serious health consequences.

In 2013, three men died after drinking a bad batch of homemade grappa at a property in Queensland.

Vincent Summers, 21, Joel Lynam, 21 and Bryan Wilmot, 30, all died after ingesting the homemade product.

Joshua Lynam suffered organ damage and partial blindness, but has since recovered.

In 2016, Joshua and Joel's father William Neil Clarence Lynam was jailed for six years over the deaths.

Also in 2013, police in Tasmania issued a warning about the dangers of drinking homemade alcohol after the deaths of two men were linked to moonshine that had been circulating in the state's east coast.