Explanatory Memorandum(Circulated by authority of the Minister for the Environment and Heritage, The Honourable Dr David Kemp, MP)
Summary of amendments
Schedule 1 provides the mechanism to exempt certain oils from the Product Stewardship Oil (PSO) levy imposed by the Customs Tariff and the Excise Tariff.
This item provides a definition for gazetted oil.
This item provides a definition for gazetted use. A gazetted use, in relation to gazetted oil, will be declared by the Minister for the Environment and Heritage, through notice in the Commonwealth Gazette, to be eligible for a 'category 8' benefit payment.
This item provides that the registration requirements in section 8(2) refer specifically to an entitlement to 'a product stewardship (oil) benefit for the sale or consumption of recycled oil that you have recycled in Australia'.
This item provides that if an individual or company makes a claim for 'category 8' benefits after the introduction into Parliament of the Product Stewardship (Oil) Legislation Amendment Act (No. 1) 2003, but before they are registered with the Australian Taxation Office to make such a claim, the claim will be taken to have been made immediately after they are registered.
This item clarifies that entitlement to a benefit under subsection 9(2) refers specifically to 'a product stewardship (oil) benefit for the sale or consumption of recycled oil that you have recycled in Australia'.
This item defines a specific entitlement to a benefit for the consumption in Australia of gazetted oil for a gazetted use. It also limits that entitlement to a period after the introduction into Parliament of the Bill for the Product Stewardship (Oil) Legislation Amendment Act (No. 1) 2003.
This item provides that any entitlement to a benefit, either in relation to the sale or consumption of recycled oil, or the consumption of gazetted oil for a gazetted use, will be worked out in accordance with the regulations.
This item modifies subsection 10(2) to refer specifically to the sale or consumption of recycled oil.
As an addition to subsection 10(2), this item provides that the volume, quality and particulars of use of gazetted oil may be considered when determining the amount of benefit payable in accordance with the regulations in any claim period. The item stipulates similar conditions for calculating the benefit payable for gazetted oil as those for recycled oil.
This item provides a definition of recycled oil that allows the inclusion of 'gazetted oil obtained through recycling', in order that such a definition may be considered under the regulations when a determination is made as to eligibility for a benefit.
This item provides clarification that a benefit 'in respect of the sale or consumption of recycled oil, or of gazetted oil for a gazetted use' may be a nil amount.
Subsection 10(4) provides that before the Governor-General makes a regulation in relation to an entitlement to a product stewardship (oil) benefit, the Minister must consider:
- the total amount that it is estimated will be collected under relevant items in the Customs Tariff Act 1995 and the Excise Tariff Act 1921 in the relevant period; and
- any relevant environmental matters related to the recycling of oils.
Item 12 provides that, in addition to considering any relevant environmental matters relating to the recycling of oil, the Minister must also consider any relevant environmental matters relating to the use of gazetted oil.
Schedule 2 makes consequential amendments to the Product Grants and Benefits Administration Act 2000 in order to provide for the difference in registration requirements between category 1-7 benefits and the new category 8 benefit under the PSO scheme.
In order to be eligible to claim PSO benefits for categories 1-7, an individual or company is required by Paragraph 9(3A)(a) to be licensed under the Excise Act 1901, along with demonstrating compliance with relevant Commonwealth, State or Territory recycling legislation, or Codes of Practice.
Item 1 creates an instrument to allow differentiated registration requirements for categories 1-7 and category 8 benefits. Claimants seeking eligibility for category 8 benefits only will be required to complete a simplified registration process. The item also replaces a requirement for claimants to be licensed under section 34 of the Excise Act 1901, which is now a redundant reference, with a requirement to be licensed to manufacture excisable goods under Part IV of the Excise Act 1901.
This modification to Paragraph 9(3A)(b) provides that unless an individual or company wishes to be registered only to be eligible to receive category 8 benefits, registration in any other case (for category 1-7 benefits) requires demonstration of compliance with relevant Commonwealth, State or Territory recycling legislation, or Codes of Practice.
This item is a transitional provision. It provides that any existing registration for product stewardship (oil) benefits (categories 1-7) in force before the commencement of Schedules 1 and 2 of the Bill will be automatically extended to include registration for eligibility to receive category 8 benefits.