Show download pdf controls
  • Excise on recycled petroleum products

    Recycled petroleum products manufactured or stored in Australia are generally subject to excise. You need to understand your excise obligations if your business deals in recycled petroleum products.

    On this page:

    Meaning of recycled

    We use the term ‘recycled’ to refer to when there's been manufacture or production of a product that's either new or different, or that has a distinctive character or use.

    Recycled petroleum products

    Recycled petroleum products are derived through a recycling, manufacturing or other process from used or waste liquid hydrocarbons.

    These products include burner fuels recycled from waste oil, recovered diesel and petrol.

    Reusing used oil isn't subject to excise

    We don't consider it to be excise manufacture if you only filter and de-water used oil so it can be reused. This is because there's been no manufacture or production of something new or different (to the used oil) with a distinctive character or use.

    Although this product may be used as a burner fuel, you:

    • don't have to pay excise duty
    • don't need an excise licence
    • aren't entitled to a Product Stewardship for Oil (PSO) program benefit or fuel tax credits.

    See also:

    • ER 2012/1 Excise: the meaning of the expression 'manufactured or produced' for the purposes of the Excise Acts
    • PGBR 2012/1 Product Stewardship (Oil) Benefit: the meaning of the expression 'goods produced from used oil' and the terms 'filtered', 'de-watered', and 'de-mineralised' for the purposes of the Product stewardship for oil benefit scheme

    Excise obligations

    Generally, if you recycle petroleum products into an industrial burner fuel, you classify the fuel product under tariff subitem 10.28. They are subject to the same rate of excise duty as petrol and diesel. To manufacture, store, deliver or move these products you must:

    • have an appropriate excise licence from us
    • lodge an excise return
    • pay excise duty.

    There are benefits payable under the Product Stewardship (Oil) Act 2000 for the recycling of waste oil. The PSO program benefit rates for recyclers vary depending on the extent to which you process the oil and the end product of the recycling activity.

    Find out about:

    See also:

    Waste oil contract collectors

    We don't require contractors who collect waste oil and deliver it to your premises, to hold an excise licence or pay excise duty on the waste oil.

    Find out about:

    Last modified: 15 Sep 2020QC 63557