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  • Rates

    Each Product Stewardship for Oil program (PSO) category of recycled oil has a benefit rate.

    The benefit rates are based on the extent of processing and the end product. The more sophisticated the treatment the higher the benefit rate.

    Table 1: Benefit rates from 1 July 2014

    Category number

    Category description

    Benefit rate (cents per litre)

    1

    Re-refined base oil (for use as a lubricant or a hydraulic or transformer oil) that meets the criteria mentioned in Schedule 1 of the Product Stewardship (Oil) Regulations

    50

    (see Note 1)

    2

    Other re-refined base oils (for example, chain bar oil).

    10

    3

    Diesel fuels that comply with the Fuel Quality Standard for Automotive Diesel

    7

    4

    Diesel extenders that:

    • are filtered, de-watered and de-mineralised
    • if combined with diesel fuels, would produce a combined fuel that complies with the Fuel Quality Standard for Automotive Diesel
     

    5

    5

    High-grade industrial burner oils (filtered, de-watered and de-mineralised).

    5

    6

    Low-grade industrial burner oils (filtered and de-watered).

    3

    (see Note 2)

    7

    Industrial process oils and lubricants, including hydraulic and transformer oils (re-processed or filtered, but not re-refined).

    0

    (see Note 3)

    8

    Gazetted oil consumed in Australia for a gazetted use.

    8.5

    (see Note 4)

    Notes:

    1. An additional amount of 12 cents per litre of product stewardship (oil) benefit is payable in respect of Category 1 re-refined base oil where the entitlement to the benefit arises between 1 July 2020 and 31 December 2020.
    2. From 23 April 2013 there is no benefit payable under category 6 (low-grade industrial burner oils) because of a decision handed down by the Administrative Appeals Tribunal in 2013 (Cooper Bros Holdings Pty Ltd trading as Triple R Waste Management v Commissioner of Taxation).
    3. The benefit amount for category 7 oil is nil. The reason industrial process oils and lubricants (including hydraulic and transformer oils) that are reprocessed or filtered but not re-refined are included in category 7 is to ensure they are not captured under another category. The result being that excise paid oils that are used and then cleaned but not re-refined and then re-used for the same use don't attract additional excise duty and don't create a PSO benefit.
    4. From 30 March 2022 to 28 September 2022, the PSO benefit rate for gazetted oils (Category 8) reduced from 8.5 cents per litre to 4.3 cents per litre.
    Last modified: 20 Sep 2022QC 44554