The product stewardship for oil (PSO) encourages recycling of used petroleum-based oils and synthetic equivalents by paying a benefit to oil recyclers.
Under the program, a levy in the form of excise and customs duty is collected on all petroleum-based oil or synthetic equivalents produced in or imported into Australia. This levy funds the benefits paid to recyclers. Some oil recyclers are required to register for excise manufacture to be eligible for the benefit.
We conduct regular assurance activities, including:
- contact with oil recyclers
- sampling of the grades of oil produced under the program for category 1 clients
- assess scheme eligibility of all new registrants
- assure claim validity for the benefit.
For 2020–21 the PSO gap estimate was around $0.27 million or 0.18% of the amounts theoretically administered by this program.
We expect the gap to continue to be low in future years, given the thoroughness of our compliance coverage.
This gap forms a part of our overall tax performance program. Find out more about the concept of tax gaps and the latest gaps available.
Table 1 shows the program amounts administered and the estimated gap from 2015–16 to 2020–21.
Element |
2015–16 |
2016–17 |
2017–18 |
2018–19 |
2019–20 |
2020–21 |
|---|---|---|---|---|---|---|
Program amounts administered ($m) |
108 |
119 |
124 |
121 |
142 |
147 |
Program gap ($m) |
0.43 |
0.48 |
0.15 |
-0.07 |
0.06 |
0.27 |
Program gap (%) |
0.39 |
0.39 |
0.12 |
-0.5 |
0.04 |
0.18 |
Figure 1 displays the trend in tax reported and the gap over the same period.
Figure 1: Program gap (percentage) – PSO, 2015–16 to 2020–21