ATO Interpretative Decision
ATO ID 2008/38
Excise
PSO: entitlement for a PSO benefit where category 5 oil is not used as a burner fuelFOI status: may be released
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is used oil that has been filtered, de-watered and de-mineralised required to be used as a burning oil to meet the description of a recycled oil in item 5 of the table in subregulation 4(1) of the Product Stewardship (Oil) Regulations 2000 (PSO Regulations)?
Decision
No, used oil that has been filtered, de-watered and de-mineralised is not required to be used as a burning oil to meet the description of a recycled oil in item 5 of the table in subregulation 4(1) of the PSO Regulations.
Facts
An oil recycler filters, de-waters and de-mineralises used oil.
The recycler sells the recycled oil for uses other than as a burner fuel.
Reasons for Decision
Subsection 9(1) of the Product Stewardship (Oil) Act 2000 (PSO Act) provides that an entity is entitled to a benefit for the sale or consumption of recycled oil that the entity has recycled in Australia. Subsection 10(1) of the PSO Act explains that the amount of benefit for a claim period is worked out in accordance with the PSO Regulations.
Subregulation 4(1) of the PSO Regulations includes a table which itemises the different categories of recycled oil and the benefit that is payable. Item 5 in that table describes the recycled oil as 'high grade industrial burning oils (filtered, de-watered and de-mineralised)'.
There is no provision in the PSO Regulations which stipulates the recycled oil described in item 5 of the table in subregulation 4(1) of the PSO Regulations must be used as a high grade burner fuel. It is considered that the phrase 'high grade industrial burning oils' is a description for recycled oil that has been filtered de-watered and de-mineralised.
Hence, a quantity of used oil which has been filtered, de-watered and de-mineralised meets the description of item 5 of the table in subregulation 4(1) of the PSO Regulations irrespective of whether or not it is used as a high grade industrial burning oil.
Date of decision: 22 February 2008
Legislative References:
Product Stewardship (Oil) Act 2000
subsection 9(1)
subsection 10(1)
subregulation 4(1)
item 5 of the table in subregulation 4(1)
Keywords
PSO recycling
ISSN: 1445-2782