• Eligibility

    Certain requirements must be met for each category before you can claim a benefit under the PSO program.

    Category 1

    To claim the PSO benefit for category 1 you must:

    • be registered for PSO
    • be licensed to manufacture excisable products
    • comply with relevant Australian, state or territory legislation relating to oil recycling operations or enterprises
    • have recycled the oil you are claiming for, and have either
      • sold the recycled oil to another entity and it is not to undergo further recycling before being sold to the end user
      • used the recycled oil in your business operations.
       

    In addition to the above, the recycled oil needs to be suitable for use as a lubricant, hydraulic or transformer oil but does not need to actually be used or sold for use in this manner.

    To determine if recycled oil is suitable for use as a lubricant, hydraulic or transformer oil it must meet both the:

    You can also use an alternative process approved by the Minister for the Environment. This process should be similar in purpose and effect to the processes mentioned above.

    You should submit your alternative process in writing to the Minister for the Environment for approval.

    See also:

    Sample testing for category 1

    To meet the quality criteria for category 1 claims, an independent laboratory must test an oil sample against the criteria given in Schedule 1 of the Regulations.

    Test results must be submitted with the first claim and at intervals of no more than six months while the benefit is being claimed.

    Recyclers making claims under PSO category 1 must submit the following statements from the laboratories involved in sampling and testing:

    • a statement from independent laboratory taking samples
    • if a different entity, a statement from independent laboratory undertaking testing of the samples.

    Independent laboratory means a laboratory that:

    • is independent of the person making the claim for PSO benefit
    • operates at arm's length from the person, and
    • has appropriate facilities, resources and expertise to conduct the necessary tests.

    Statement from independent laboratory taking samples

    Sample takers may provide any form of statement which includes words to the effect that:

    • the sample is representative of a production run of the 're-refined base oil', and
    • the sample taker is satisfied that the sample was not tampered with after it was collected and before it was dispatched to the laboratory undertaking testing.

    Statement from independent laboratory undertaking testing of samples

    Laboratories may provide any form of statement which includes words to the effect that the sample was not tampered with after receipt by the laboratory and before testing.

    The statement must be signed and dated by an authorised representative of the independent laboratory, who must also clearly print their name, position and organisation on the statement.

    See also:

    Category 2

    To claim PSO benefits for category 2, you must:

    • be registered for PSO
    • be licensed to manufacture excisable products
    • comply with relevant Australian, state or territory legislation for oil recycling operations or enterprises
    • have recycled the oil you are claiming for, and have either:
      • sold the recycled oil to another entity and it is not to undergo further recycling before being sold to the end user
      • used the recycled oil in your business operations.
       

    For category 2 benefit the recycled oil must meet the definition of a re-refined base oilExternal Link. This requires the used oil to be restored to the condition of a base oil by either thin film evaporation, or vacuum distillation followed by either solvent extraction, or hydrofinishing.

    You can also use an alternative process approved by the Minister for the Environment. This process should be similar in purpose and effect to the processes mentioned above.

    You should submit your alternative process in writing to the Minister for the Environment for approval.

    There is no requirement under category 2 for the re-refined base oil to be suitable for use as a lubricant, hydraulic or transformer oil or to meet the requirements of Schedule 1 of the Regulations.

    See also:

    Categories 3-5

    To claim any of the PSO benefits for categories 3, 4, or 5, you must:

    • be registered for PSO
    • be licensed to manufacture excisable products
    • comply with relevant Australian, state or territory legislation relating to oil recycling operations or enterprises
    • have recycled the oil you are claiming for, and have either
      • sold the recycled oil to another entity and it is not to undergo further recycling before being sold to the end user, or
      • used the recycled oil in your business operations.
       

    In addition, for each of those categories the following requirements must be satisfied:

    • Category 3 - recycled oil must comply with the Fuel Standard (Automotive Diesel) Determination 2001.
    • Category 4 - recycled oil must be filtered, dewatered and demineralised and if combined with diesel the resulting blend must comply with the Fuel Standard (Automotive Diesel) Determination 2001.
    • Category 5 - recycled oil must be filtered, dewatered and demineralised and be suitable for use as a high grade industrial burner oil. Note the recycled oil is not required to be used or sold for use as a high grade industrial burner fuel.

    See also:

    Category 6

    There is no benefit payable under category 6 as a result of a decision handed down by the Administrative Appeals Tribunal in 2013.

    See also:

    Category 7

    You can claim for category 7 but the benefit amount is nil.

    See also:

    Category 8

    You must be registered to claim PSO benefits for category 8.

    It is not the intent of the PSO program to capture oils that are incorporated into products or end-uses that do not produce a recyclable waste oil stream and present a low risk to the environment.

    As a result, if you use gazetted (eligible) oil in a gazetted (eligible) use in Australia you may be able to claim a category 8 benefit. However there is no entitlement to a PSO benefit under category 8 to the person who uses the resulting product after the oil has been incorporated into it.

    Gazetted oils generally:

    • can't be recycled, and
    • are considered a low risk to the environment.

    Gazetted oils must be declared by the Minister and are listed in the Product Stewardship (Oil) Declaration 2003 (see Table 2).

    If you are unsure whether you have purchased gazetted oil you should contact your supplier for information on its specifications and composition.

    Table 2: Gazetted oils and uses

    Gazetted oil

    Gazetted use

    Naphthenic process oil

    Incorporated in:

    • a de-dusting composition for insulating material
    • a de-watering flocculant composition
    • a mould release composition
    • an adhesive
    • an ammonium nitrate fuel oil explosive
    • an ink, varnish or resin for printing
    • a paint de-foamer
    • a rock drilling composition, or
    • a rubber compound. 
     

    Paraffinic process oil

    Incorporated in:

    • a de-dusting composition for insulating material
    • a de-watering flocculant composition
    • a mould release composition
    • an adhesive
    • an agricultural spray
    • an anti-bloat composition
    • an ammonium nitrate fuel oil explosive
    • an ink, varnish or resin for printing
    • a personal care product
    • a rock drilling composition, or
    • a rubber compound. 
     

    Paraffinic (C14-17) process oil

    Incorporated in a medium chain chlorinated hydrocarbon by a chlorination process.

    Petroleum jelly

    Incorporated in an ink, varnish or resin for printing.

    Polyisobutylene succinic anhydride (PIBSA)

    Incorporated in an explosive composition.

    Vegetable-derived polyethers

    Incorporated in a textile fibre lubricant.

    White mineral oil

    Incorporated in a personal care product.

    See also:

    Last modified: 26 May 2015QC 44561