If you are licensed to manufacture excisable products and recycle oil or use recycled oil in your business, you may be eligible for a benefit under the Product Stewardship for Oil program (PSO).
The PSO is aimed at supporting and encouraging environmentally-sustainable management of used oil.
Under the program, a levy (in the form of excise and customs duty) is collected on all petroleum-based oil or their synthetic equivalents produced in or imported into Australia. This levy is used to provide benefits to recyclers of used oil and users of gazetted oils.
Benefit rates for recyclers vary depending on the extent to which the oil is processed and the end product of the recycling activity.
The program pays a benefit in cents per litre for oil in eight categories:
- categories 1–5 for recycling used oil
- category 8 for using gazetted or eligible oil in a gazetted or eligible use.
There is no benefit payable under categories 6, 7 or 9.
If you are recycling used oil and eligible to claim a PSO benefit, you need to have an excise manufacturer's licence. You also need to report and pay excise duty on any eligible recycled products.
Note: You'll be able to claim a product stewardship for oil benefit directly through our online services for business from 27 September 2021.
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See also:The product stewardship for oil program provides a benefit for recycled oil and using recycled oil.