Excise guidelines for the fuel industry
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This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
13 OIL RECYCLING
13.1 PURPOSE
This Chapter deals with:
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- what constitutes oil recycling
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- how the excise system applies to oil recycling
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- circumstances where duty is not payable on recycled oil, and
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- blending of recycled oil products.
13.2 INTRODUCTION
Oil recycling involves the use of processes to convert used or waste oils into saleable products that can be re-used. This conversion constitutes excise manufacture where the recycling process results in something new or different having a distinctive character or use. Recycling to this extent constitutes manufacture and requires an excise manufacturer licence. [357] Merely preparing waste oil for re-use (for example, settling or straining for large-scale impurities) is not considered to be manufacture and does not make the end product excisable.
Some of these products are ' excisable fuel products '. [358]
13.3 POLICY AND PRACTICE
13.3.1 WHEN A RECYCLING PROCESS ALSO CONSTITUTES EXCISE MANUFACTURE
Recycling includes filtering, de-watering, demineralisation, separation of contaminants by settlement, centrifuge and refining to treat waste or contaminated oils or fuels. However, it is noted that these processes can be performed with varying levels of effectiveness depending on the type of equipment or process used.
It is a question of fact and degree as to whether a recycling process (for example, filtering, de-watering and de-mineralisation, or refining) results in something that is new or different having a distinctive character or use.
Example 13A – recycling that is not manufacturing or producing an excisable good
Di Waste Oils Pty Ltd (Di) is a waste management company that collects various used oils, coolants (glycol and water) and other hazardous liquids. [359]
These waste liquids are collected from several sites in a single journey. During collection, the waste liquids are pumped into a tanker through a metal screen. By detecting audible changes in pump speed caused by variations in the viscosity of liquid passing through it, the tanker operator switches from one segregated part of the tanker to another to separate the fluids according to the relative viscosity. This is done in order to optimise the separation of less viscous fluids including water, which will be directly disposed of by Di as hazardous waste, from other higher viscosity hydrocarbon liquids.
At Di's depot, the tanker's compartments containing the less viscous liquids are disposed of as hazardous waste. The higher viscosity liquids (comprising primarily used oils and hydraulic fluids) are pumped through a filter bag into a large, fixed waste oil storage tank. The filter bag removes small particles of wear metal and other solid or semi-solid contaminants.
The oil in the waste oil tank is then pumped through a heat exchange where it is heated to a suitable temperature (to reduce the viscosity of the oil which assists with separation) and passed through a centrifuge to remove any remaining solids and water suspended within the oil. The oil is then tested to ensure, among other things, that the oil is compliant with local council and state environmental legislation and that it meets customer specifications. The oil is then sold as 'low grade burner fuel'.
The low grade burner fuel is not a new and different product with a distinctive character or use. The burner fuel 'merely contains less water and other extrinsic impurities than the used oil'. The burner fuel does not inherently have a different utility to that out of which it was made and is 'merely better able to be used for the same purpose'.
Di has not manufactured or produced a product for excise purposes.
This example can be contrasted with Example 13B in which used oil is subjected to an additional step of 'demineralisation'. This additional step results in the removal of impurities that are more intrinsic in nature (than the water and other extrinsic impurities removed by filtering and de-watering alone).
Given that the above processes are not recycling, they would not be considered to constitute excise manufacture and no excise licence would be required.
Example 13B – recycling that is manufacturing or producing an excisable good
Eric is an oil recycler. Eric collects used oil of varying type and quality from multiple sources. Upon arrival at his depot, Eric drains any free water from the road tanker and then pumps the used oil through a screen into a reaction tank. [360]
In order to reduce the ash content of the oil when combusted, Eric needs to remove intrinsically dissolved mineral contaminants produced from the breakdown of mineral enhancers and lubricants, both added to the oil by manufacturers and accumulated from fuel engine deposits.
To do so, Eric adds a quantity of sulphuric acid followed by an inter-facial surface active agent (surfactant) to the reaction tank and the mixture is stirred and heated to 60° C for 2 hours. The mixture is then allowed to stand so that it can separate into 2 layers or 'phases' – that is, an oil phase and water-based or 'aqueous' phase. The surfactant facilitates both the reaction of the sulphuric acid with mineral contaminants dissolved within the oil and the separation of the 2 phases. Excess acid, water and the reacted contaminants in the oil accumulate in the aqueous phase, which settles to the bottom of the reaction tank and is drained off as slurry.
The oil then undergoes centrifugal separation to remove any remaining fine particles suspended in the oil. Eric samples and tests the oil to ensure the oil meets his customer's specifications for high-grade industrial burner oil.
A chemical transformation is required for the removal of mineral contaminants intrinsically dissolved in the used oil. This will also result in the modification of some of the used oil's physicochemical properties. This procedure involves more than the 'mere removal of water and other extrinsic materials' that may be achieved by filtering and de-watering alone.
The process undertaken by Eric results in a 'recycled oil' that is new or different with a distinctive character from the used oil as collected. The high-grade industrial burner oil is manufactured or produced for excise purposes.
Paying excise on recycled oil
You must pay excise duty on liquid hydrocarbon products produced through a recycling, manufacturing or other process. [361] This includes products derived from petroleum and non-petroleum sources.
You must also pay excise duty on petroleum-based oils (including lubricant, fluid or oil products and greases) and their synthetic equivalents that are recycled for use as oils or greases. [362]
Excise treatment of blended recycled products depends on whether the blend is an excisable blend or a blend that is not excisable.
You need to pay excise on products derived from a petroleum source (for example, used lubricating oil) even if they do not fit into a specific product subitem of the Schedule. This is because subitem 10.28 of the Schedule covers any product which is not included elsewhere.
Example 13C
Mark's Oil Recycling filters, de-waters and demineralises waste oil (consisting mainly of used engine lubricant oil) to produce a high-grade industrial burner fuel. The product does not meet industry product standards for heating oil and is not 'fuel oil' as defined in the Excise Tariff Act.
The product is excisable and classified to subitem 10.28 of the Schedule.
Example 13D
Max's manufacturing company uses waste plastic to produce a fuel that meets the diesel standard. The fuel (diesel) is classifiable to subitem 10.10 of the Schedule.
13.3.2 RECYCLED FUELS THAT ARE NON-EXCISABLE
Recycled solvents
A recycled solvent product does not attract excise if [363] :
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- the product was originally delivered into ' home consumption ' under subitems 10.25, 10.26, 10.27, 10.28 or 10.30 of the Schedule
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- you used the product as a solvent
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- you recycle it for your own re-use as a solvent, and
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- when recycled, the product is classified to its original subitem of the Schedule.
Example 13E – solvent recycling that is non-excisable
Peter's Spray Shed uses solvents to clean spray painting equipment on a weekly basis. After 2 month's use, the solvent becomes unusable. The solvents are recycled by Peter's Spray Shed by putting them through a basic filtering process to remove impurities. The recycled solvent is then used for cleaning spray equipment. The recycled solvent does not attract excise duty and Peter's Spray Shed does not require an excise manufacturer's licence for this recycling.
Recycled oil that will be used to make a non-excisable blend
Some blended recycled products are non-excisable. Blended products that are not suitable for use in an internal combustion engine are not excisable. However excise duty must be paid on any excisable constituents of the blend.
Example 13F – blend that is non-excisable
Mark's Recycling produces high-grade burner fuel by recycling waste oil. The burner fuel is classifiable to subitem 10.28 of the Schedule.
Mark's Recycling wants to blend the burner fuel with bitumen to make an anti-corrosion waterproof paint. The composition of the paint means it cannot be used as a fuel in an internal combustion engine. As such, the paint is not classified to subitem 10.30 of the Schedule.
Even though the paint is not excisable, Mark's Recycling must pay excise duty on the burner fuel that was used in its production. As Mark holds a PSP, the burner fuel is considered to be delivered into home consumption at the point of blending with the bitumen.
Mark's Recycling will need to lodge an excise return and pay the duty liability on the burner fuel.
13.3.3 WORKING OUT THE AMOUNT OF EXCISE DUTY TO PAY
The amount of excise you're liable to pay depends on the rate of excise duty that applies to the recycled oil on the day it's delivered into home consumption (including when it's consumed at premises covered by your licence) and the quantity involved.
Example 13G
An oil recycler filters de-waters and demineralises waste oil consisting mainly of used engine lubricant oil. They produce a liquid hydrocarbon product suitable for use as a high-grade industrial burner fuel.
The product does not meet industry product standards for heating oil and is not 'fuel oil' as defined in the Excise Tariff Act. As a consequence the product is classified to subitem 10.28 of the Schedule. The oil recycler pays excise duty at the rate in force on the day the product is delivered into home consumption.
Measuring the volume of recycled oil
If you deliver excisable goods into home consumption, you must accurately measure volumes of recycled oil. This ordinarily means using calibrated tanks or flow meters.
If you recycle oil for your own use, you can measure the volume of the recycled oil by using [364] :
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- a properly calibrated flow meter
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- a formula that determines the volume of output by using historical data from similar oil, or
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- any other similarly accurate method that has been approved at the time your licence was issued.
When excise duty is payable
Two examples specific to the recycling industry are as follows.
Example 13H
Mario's Waste Oil Recycling produces 1,000 litres of diesel fuel from waste oil and sells the product for electricity generation.
This product is classified to subitem 10.10 of the Schedule and duty is payable on the diesel at the rate of $0.508 [365] per litre. Mario's Waste Oil Recycling has a PSP. Mario's Waste Oil Recycling declares the 1,000 litres on their weekly ' excise return ' and pays excise duty of $508.00.
Example 13I
Pauline's Brickworks holds an excise manufacturer licence to recycle waste oil. It collects 1,500 litres of waste oil and recycles it for use as a high-grade burner fuel in its brick kilns.
The product is a petroleum-based recycled waste oil that cannot be classified to a specific subitem of the Schedule. This product is classified to subitem 10.28 of the Schedule and excise duty is payable on the recycled waste oil at the rate of $0.508 per litre.
Pauline's Brickworks has a PSP. It declares the 1,500 litres on the weekly excise return that is lodged after the product is used in the brick kilns, and pays excise duty of $762.
13.3.4 OBTAINING AN EXCISE DUTY REMISSION OR REFUND
In certain situations, you may be entitled to a ' refund ' or ' remission ' of the excise duty paid or payable on recycled oils. [366] These circumstances were introduced at the same time as the introduction of the Product Stewardship for Oil (PSO) scheme to ensure no entitlement to a PSO benefit arises for oil products that are recycled using relatively simple processes and that these recycled oils are not subjected to the excise duty of 14.2c per litre under item 15 of the Schedule.
A remission of duty is available for recycled oil products if:
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- the recycled product is hydraulic oil, brake fluid, transmission oil, transformer oil or heat transfer oil classified to subitem 15.2 of the Schedule
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- no PSO benefit is payable
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- the recycled product will be used for the same purpose for which it was used before being recycled (that is, recycled transmission oil will be used as transmission oil etc), and
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- the recycled product is delivered into home consumption under a PSP.
A refund of duty is available on recycled oil products if:
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- excise duty was paid on recycled hydraulic oil, brake fluid, transmission oil, transformer oil or heat transfer oil classified to subitem 15.2 of the Schedule
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- no PSO benefit is payable
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- the product has been used for the same purpose for which it was used before being recycled.
13.3.5 CLAIMING A CREDIT OR BENEFIT FOR EXCISE DUTY PAID
If the product of your recycling activities is a taxable fuel [367] (for fuel tax credit purposes) you may be able to claim a fuel tax credit if you use this fuel in your business.
You may also be entitled to a benefit under the PSO program for the oil you recycle.
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- fuel tax credits, see Fuel schemes
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- PSO benefits, see Product stewardship for oil program .
13.4 PROCEDURES
If you need more information on oil recycling, contact us via:
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- phone 1300 137 290
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- ATO Online Services , or
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- write to us at
- Australian Taxation Office
PO Box 3514
ALBURY NSW 2640
We will ordinarily respond to written information requests within 28 days. If we cannot respond within 28 days, we will contact you within 14 days to obtain more information or negotiate an extended response date.
13.5 PENALTIES THAT CAN APPLY IN RELATION TO OIL RECYCLING
The following are the penalties that may apply after conviction for an offence.
Manufacture
If you manufacture excisable fuel products without a manufacturer licence, the penalty is a maximum of 2 years in prison or the greater of 500 ' penalty units ' and 5 times the amount of duty on the excisable fuel products. [368]
If you manufacture excisable fuel products contrary to the Excise Act or any conditions specified in your licence, the penalty is a maximum of 2 years in prison or 500 penalty units. [369]
If you manufacture excisable fuel products at premises that are not specified in your licence, the penalty is a maximum of 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty on the excisable fuel products. [370]
Move, alter or interfere
If you move ' underbond ' excisable fuel products without approval, the penalty is a maximum of 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty on the excisable fuel products. [371]
Note: This includes moving underbond excisable fuel products from your premises to any other location or for export.
If your movement of underbond excisable fuel products does not comply with the permission to move the underbond excisable fuel products, the penalty is a maximum of 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty on the excisable fuel products. [372]
If you move, alter or interfere with excisable fuel products that are subject to ' excise control ', without permission, the penalty is a maximum of 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty on the excisable fuel products. [373]
Deliver
If you deliver excisable fuel products into home consumption contrary to your permission, the penalty is a maximum of 2 years in prison or the greater of 500 penalty units and 5 times the amount of duty on the excisable fuel products. [374]
If you do not keep, retain and produce records in accordance with a ' direction under section 50 ' of the Excise Act, the penalty is a maximum of 30 penalty units.
Directions
If you do not comply with a direction in regard to what parts of the factory can be used for various matters, the penalty is a maximum of 10 penalty units. [375]
False or misleading statements
If you make a false or misleading statement, or an omission from a statement in respect of duty payable on particular goods, to us, a penalty not exceeding the sum of 50 penalty units and twice the amount of duty payable on those goods. [376]
Evade
If you evade payment of any duty which is payable, the maximum penalty is 5 times the amount of duty on the excisable fuel products, or where a court cannot determine the amount of that duty the penalty is a maximum of 500 penalty units. [377]
Facilities etc.
If you do not provide all reasonable facilities for enabling us to exercise our powers under the Excise Act, the penalty is a maximum of 10 penalty units. [378]
If you do not provide sufficient lights, correct weights and scales, and all labour necessary for weighing material received into, and all excisable fuel products manufactured in, your factory and for taking stock of all material and excisable fuel products contained in your factory, the maximum penalty is 10 penalty units. [379]
If we mark or seal excisable fuel products or fasten, lock or seal any plant in your factory and you alter, open, break or erase the mark, seal, fastening or lock, the maximum penalty is 50 penalty units. [380]
13.6 TERMS USED
Excisable goods are goods on which excise duty is imposed. Excise duty is imposed on goods that are manufactured or produced in Australia and listed in the Schedule.
As this Guide deals with fuel products, we have used the term excisable fuel products.
Excisable fuel products include:
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- petrol
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- diesel
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- renewable diesel
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- crude petroleum oil
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- condensate
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- heating oil
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- kerosene
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- fuel ethanol
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- biodiesel
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- compressed natural gas (CNG)
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- liquefied natural gas (LNG), and
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- liquefied petroleum gas (LPG).
Goods are subject to excise control from the point of manufacture until they have been delivered into home consumption or for export.
Goods subject to excise control cannot be moved, altered or interfered with except as authorised by the Excise Act.
An excise return [381] is the document that you use to advise us the volume of excisable fuel products that you:
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- have delivered into home consumption during the period designated on your PSP, or
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- wish to deliver into home consumption following approval.
'Home consumption' [382] is the term used in the Excise Act and this Guide to describe when excisable fuel products are released into the Australian domestic market for consumption. The term used in the legislation is 'deliver for home consumption'.
Normally, this will be by delivering the goods away from premises covered by a licence but includes using those goods within those premises (for example, using fuel to run equipment in premises covered by your licence). It does not include goods delivered for export or the movement of goods underbond (see definition below) to another licensed site.
The term 'home consumption' is not defined in the Excise Act and there is no definitive case law that looks at the issue in question. However there are several cases where issues closely related to it are considered. [383]
The conclusion drawn from those cases is that 'home consumption' refers to the destination of goods as being within Australia as opposed to exporting them.
The value of a penalty unit is contained in section 4AA of the Crimes Act 1914 , and is indexed regularly. The dollar amount of a penalty unit is available at Penalties .
A refund is the repayment of duty that has already been paid.
A remission of excise duty extinguishes the liability for duty that was created at the point of manufacture.
This is a written instruction issued under section 50 of the Excise Act to a licensed manufacturer, or proprietor of premises covered by a storage licence, to keep specified records, furnish specified returns, retain records for a specified period and produce those records on demand by us.
This is an expression not found in excise legislation but it is widely used to describe goods that are subject to excise control. Excisable goods that are subject to excise control are commonly referred to as 'underbond goods' or as being 'underbond'. This includes goods that have not yet been delivered into home consumption and goods moving between premises under a movement permission.
13.7 LEGISLATION (quick reference guide)
In this Chapter, we have referred to the following legislation:
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- Excise Act 1901
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- section 24 – excisable goods and goods liable to duties of Customs may be used in manufacturing excisable goods
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- section 25 – only licensed manufacturers to manufacture excisable goods
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- section 26 – licensed manufacturers to manufacture in accordance with Act and licence
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- section 27 – licensed manufacturers to manufacture only at premises covered by a licence
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- section 49 – facilities to officers
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- section 50 – record keeping
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- section 51 – collector may give directions
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- section 52 – weights and scales
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- section 58 – entry for home consumption etc.
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- section 61 – control of excisable goods
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- section 61A – permission to remove goods that are subject to CEO's control
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- section 61C – permission to deliver certain goods for home consumption without entry
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- section 77H – blending exemptions
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- section 77J – goods that are not covered by subitem 10.25, 10.26, 10.27, 10.28 or 10.30
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- section 78 – remissions, rebates and refunds
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- section 92 – seals etc. not to be broken
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- section 117A – unlawfully moving excisable goods
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- section 117B – unlawfully selling excisable goods
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- section 120 – offences
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- Excise Regulations 2015
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- Item 18, Clause 1 of Schedule 1 – circumstances under which refunds, rebates and remissions are made
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- Excise Tariff Act 1921
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- section 3 – definitions
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- The Schedule
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- Product Grants and Benefits Administration Act 2000
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- section 9 – registration for entitlement to grants or benefits
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- Product Stewardship (Oil) Act 2000
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- section 6 – definitions
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- Product Stewardship (Oil) Regulations 2000
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- regulation 4 – amount of product stewardship benefit
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- Crimes Act 1914
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- section 4AA – penalty units
Amendment history
| Part | Comment |
|---|---|
| Throughout | This chapter was updated to take into account the law changes as a result of the Excise and Customs Legislation Amendment (Streamlining Administration) Act 2024 . |
| Throughout | Updated in line with current ATO style and accessibility requirements. |
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
Section 90 of the Commonwealth of Australia Constitution Act.
Ha v New South Wales [1997] HCA 34.
Ha [1997] HCA 34; 97 ATC 4674 at [4684], per Brennan CJ, McHugh, Gummow and Kirby JJ.
Section 5 of the Excise Tariff Act imposes excise duty on goods 'manufactured or produced'. In this Guide, the term manufactured means manufactured or produced unless otherwise specified.
For an explanation of customs and excise tariff proposals, see About Tariff Proposals .
In the absence of a tariff amendment bill, tariff proposals then before the House may be affirmed towards the end of a period of sittings by means of a tariff validation bill.
Section 115 of the Excise Act.
Section 25 of the Excise Act.
Subsection 4(1) (definition of 'storage licence') and Part IV of the Excise Act.
Section 61A of the Excise Act.
Section 7 of the Excise Act and section 1A of the Excise Tariff Act.
Section 38 of the Excise Act.
Section 4 of the Excise Act. The term 'licensed manufacturer' means 'a person or partnership who holds a manufacturer licence'.
Division 1 of Part III of the Excise Act.
Section 4 of the Excise Act.
Commissioner of Taxation v Jax Tyres Pty Ltd [1984] FCA 466; MP Metals Pty Ltd v Commissioner of Taxation (Cth) [1968] HCA 89; Commissioner of Taxation v Softex Industries Pty Ltd (formerly Cosco Holdings Pty Ltd) [2001] FCA 397; Re Searls Ltd (1933) 33 SR (NSW) 7.
Refer to ER 2012/1.
Refer to ER 2012/1.
Section 77HB of the Excise Act.
Section 77HA of the Excise Act.
Section 77G of the Excise Act.
Section 77H of the Excise Act.
Paragraph 77H(1)(a) of the Excise Act.
Where it is unclear whether certain blends constitute a fuel that can be used as a fuel in an internal combustion engine, the Commissioner is able to make a determination under subsection 95-5(1) of the Fuel Tax Act 2006 that blends of fuel and other products do not constitute a fuel.
Paragraph 77H(1)(b) of the Excise Act.
The CEO may, by legislative instrument, exclude certain blends from being covered by table item 10(g) of the Schedule to the Excise Tariff Act. These blends would be determined not to cause a risk to the revenue or risk the integrity of other measures.
This does not apply to denatured ethanol for use as fuel in an internal combustion engine or biodiesel where customs duty is cannot be extinguished and is payable on blending.
Section 105B of the Customs Act 1901 .
Section 27 of the Excise Act.
Section 51 of the Excise Act.
Section 60 of the Excise Act.
Definition of 'storage licence' in subsection 4(1) of the Excise Act.
Section 53 of the Excise Act.
Section 60 of the Excise Act.
Section 62 of the Excise Act.
Section 61A of the Excise Act.
Section 26 of the Excise Act.
Sections 58 and 61C of the Excise Act.
Section 54 of the Excise Act.
Section 49 of the Excise Act.
Section 52 of the Excise Act.
Subsection 86(2) of the Excise Act.
Section 87 of the Excise Act.
Section 6 of the Crimes Act 1914 .
Sections 11.1, 11.2 and 11.5 of the Schedule to the Criminal Code Act 1995 .
Section 87AA of the Excise Act.
Section 91 of the Excise Act.
Section 46 of the Excise Act.
Section 106 of the Excise Act.
Section 50 of the Excise Act.
Subsection 4(1) of the Excise Act defines the Collector as the CEO or in relation to a section of an Excise Act for which a person is an authorised officer – that authorised officer.
Section 39E of the Excise Act.
Section 39O of the Excise Act.
Section 40 of the Excise Act.
Subsection 4(1) of the Customs Act 1901 defines 'excise-equivalent goods' as those goods prescribed by the Customs Regulation 2015 . They are generally imported goods which would attract an excise duty if manufactured in Australia.
Subdivision 355-C of Schedule 1 to the TAA.
Section 39 of the Excise Act.
Sections 25 and 117 of the Excise Act.
Sections 39FA and 39LA of the Excise Act.
Section 39FB of the Excise Act.
Sections 25 and 117 of the Excise Act.
Section 6A of the Excise Act.
Section 25 of the Excise Act.
Section 26 of the Excise Act.
Section 27 of the Excise Act.
Section 117 of the Excise Act.
Section 120 of the Excise Act.
Section 50 of the Excise Act.
Section 51 of the Excise Act.
Section 49 of the Excise Act.
Section 52 of the Excise Act.
Section 92 of the Excise Act.
Note the legislation uses the term 'delivered for home consumption' (see, for example, sections 61 and 61C of the Excise Act).
See R v Lyon [1906] HCA 17; Collector of Customs (NSW) v Southern Shipping Co Ltd [1962] HCA 20; Carmody v F C Lovelock Pty Ltd [1970] HCA 35; Caltex Australia Petroleum Pty Ltd v Commissioner of Taxation [2008] FCA 1951 and Moama Refinery Pty Ltd v Chief Executive Officer of Customs [2001] FCA 1287.
Sections 39B and 39C of the Excise Act.
Paragraphs 39B(e) and 39B(f) of the Excise Act.
Moore, B (2004) The Australian Oxford Dictionary , 2nd edn, Oxford University Press, Melbourne.
Paragraph 39B(f) of the Excise Act.
Paragraph 39A(2)(f) of the Excise Act; section 995-1 of the Income Tax Assessment Act 1997 ; subsection 318(1) of the Income Tax Assessment Act 1936 .
See section 995-1 of the Income Tax Assessment Act 1997 for the definition of 'relative' for this purpose.
Subsection 318(1) of the Income Tax Assessment Act 1936 .
Subsection 318(7) of the Income Tax Assessment Act 1936 .
Subsection 318(2) of the Income Tax Assessment Act 1936 .
Subsection 318(3) of the Income Tax Assessment Act 1936 .
Subsection 318(4) of the Income Tax Assessment Act 1936 .
Paragraph 39A(2)(fa) of the Excise Act.
Paragraphs 39A(2)(g) of the Excise Act.
Paragraph 39A(2)(i) of the Excise Act.
Paragraph 39A(2)(ia) of the Excise Act.
Note this does not indicate that a licence would be granted to produce or manufacture for personal use as other factors may result in refusal to grant a licence.
Paragraph 39(2)(j) of the Excise Act.
Paragraph 39A(2)(k) of the Excise Act.
Section 5 of the Excise Tariff Act.
Paragraph 39A(2)(l) of the Excise Act.
Martino and Australian Taxation Office [2002] AATA 1242.
Paragraph 39G(1)(k) of the Excise Act.
Subsection 39D(4) and section 39DA of the Excise Act.
Subsection 39D(1) of the Excise Act.
Subsection 39D(3) of the Excise Act.
Section 39Q of the Excise Act.
Sections 16 to 22 of the Excise Act.
Section 39Q of the Excise Act.
Paragraph 120(1)(iv) of the Excise Act.
Paragraph 120(2)(d) of the Excise Act.
Note that this is different to the consideration for granting a licence. In granting a licence we can take into account any misleading statement, or if you knowingly made a false statement, in your application. For suspension or cancellation we can consider any statement you make to us in relation to excise matters.
Subsection 39L(4) of the Excise Act.
Subsection 39L(3) of the Excise Act.
Subsections 39G(1) and 39L(1) of the Excise Act.
Sections 26 and 39K of the Excise Act.
Section 39K of the Excise Act.
Subsection 39K(6) of the Excise Act.
Subsection 39N(2) of the Excise Act.
Section 39LA of the Excise Act.
Section 39Q of the Excise Act.
Subsections 39J(2) and 39L(5) of the Excise Act.
Section 39P of the Excise Act.
Paragraph 39K(1)(a) of the Excise Act.
Paragraph 39K(1)(b) of the Excise Act.
Subsection 39K(1A) of the Excise Act.
Subsection 39M(1) of the Excise Act.
This does not mean movements within the bounds of premises covered by your licence, rather movements from premises covered by a licence to another place.
Section 61A of the Excise Act.
Sections 16 to 22 of the Excise Act.
Section 60 of the Excise Act.
While there is no specific provision in the Excise Act which allows permissions to be cancelled (unlike licences), in accordance with subsection 33(3) of the Acts Interpretations Act 1901 the power to grant the permission provides the power to cancel or revoke the permission.
Section 117A of the Excise Act.
Section 61A of the Excise Act.
Note the legislation uses the term 'delivered for home consumption' (see, for example, sections 61 and 61C of the Excise Act).
See R v Lyon [1906] HCA 17; Collector of Customs (NSW) v Southern Shipping Co Ltd [1962] HCA 20; Carmody v F C Lovelock Pty Ltd [1970] HCA 35; Caltex Australia Petroleum Pty Ltd v Commissioner of Taxation [2008] FCA 1951 and Moama Refinery Pty Ltd v Chief Executive Officer of Customs [2001] FCA 1287.
Subsection 5(1) of the Excise Tariff Act.
Section 61 of the Excise Act.
Section 61C of the Excise Act.
Paragraph 58(1)(a) of the Excise Act.
Section 61C of the Excise Act.
Paragraph 61C(1)(a) of the Excise Act.
Subsection 61C(1A) of the Excise Act.
Subsection 61C(1B) of the Excise Act.
Paragraph 61C(1)(b) of the Excise Act.
Subparagraph 61C(1)(b)(ia) of the Excise Act.
Subparagraphs 61C(1)(b)(i) and (ii) of the Excise Act.
As defined by section 328-110 (other than subsection 328-110(4)) of the Income Tax Assessment Act 1997 .
Defined in subsection 4(1) of the Excise Act by reference to subparagraph 61C(1)(b)(ia) and section 61C(1AA) of the Excise Act.
Paragraph 61C(3) of the Excise Act.
Subsections 61C(1C); (1D) and (1E) and subsections 61C(5) to (7) of the Excise Act.
Paragraph 61C(1C)(b) of the Excise Act.
Paragraphs 162C(1)(d), (e) or (f) of the Excise Act.
Paragraph 61C(3)(a) of the Excise Act; paragraph 1.21 of the Explanatory Memorandum to the Excise Amendment (Reducing business Compliance Burden) Bill 2011.
Paragraph 61C(3)(b) of the Excise Act.
Paragraphs 61C(3)(c) and (d) of the Excise Act.
Paragraph 61C(3A)(a) of the Excise Act.
Paragraph 61C(8)(a), (b) and (c) of the Excise Act.
Paragraph 61C(8)(c) of the Excise Act.
Paragraphs 61C(8)(d) and (e) of the Excise Act.
Paragraph 61C(3)(e) of the Excise Act.
Subsection 61C(9) of the Excise Act.
Section 58 of the Excise Act.
For the current rates of duty, refer to our tariff working page Excise duty rates for fuel and petroleum products .
Section 59 of the Excise Act.
For an explanation of customs and excise tariff proposals, see About Tariff Proposals .
Subsections 59A(1) and (2) of the Excise Act.
Subsection 59A(5) of the Excise Act.
This allocation considers your normal delivery activity over a period of time. This period will take into account any aberrations and will be long enough to allow a representative average to be calculated.
Subsection 59A(8) of the Excise Act.
Section 154 of the Excise Act.
Section 155 of the Excise Act and section 359-60 of Schedule 1 to the TAA.
Section 60 of the Excise Act.
ATO Interpretative Decision ATO ID 2004/61 Excise: goods given away without payment of excise duty but see Delivering samples without payment of duty in Section 7.3.5.
ATO Interpretative Decision ATO ID 2001/595 Excise: Liability to pay an amount equal to the excise duty on excisable goods stolen from the premises of a licensed excise manufacturer or a licensed storage place .
Section 162C of the Excise Act.
Subsection 61C(7) of the Excise Act.
Paragraphs 162C(1)(d), (e) and (f) of the Excise Act.
ATO Interpretative Decision ATO ID 2004/114 Payment of excise duty: lodgment of periodic settlement permissions - public holidays (now withdrawn); paragraph 1.21 of the Explanatory Memorandum to the Excise Amendment (Reducing Business Compliance Burden) Bill 2011.
Section 61 of the Excise Act.
Section 61C of the Excise Act.
Paragraphs 120(1)(iv) and 120(2)(b) of the Excise Act.
Section 120 of the Excise Act.
The term used in section 58 of the Excise Act is 'entry for home consumption'.
Note the legislation uses the term 'delivered for home consumption' (see, for example, sections 61 and 61C of the Excise Act).
R v Lyon [1906] HCA 17; Collector of Customs (NSW) v Southern Shipping Co Ltd [1962] HCA 20; Carmody v F C Lovelock Pty Ltd [1970] HCA 35; Caltex Australia Petroleum Pty Ltd v Commissioner of Taxation [2008] FCA 1951 and Moama Refinery Pty Ltd v Chief Executive Officer of Customs [2001] FCA 1287.
Section 78 of the Excise Act.
Table item 1 of clause 1 of Schedule 1 to the Excise Regulation.
Pan Macmillan Australia (2025) The Macquarie Dictionary online, www.macquariedictionary.com.au , accessed 12 June 2025.
Table item 2 of clause 1 of Schedule 1 to the Excise Regulation.
Table item 18 of clause 1 of Schedule 1 to the Excise Regulation.
Subsection 78(3) of the Excise Act.
Clause 2 of Schedule 1 to the Excise Regulation.
Table item 2 of clause 2 of Schedule 1 to the Excise Regulation.
Table item 3 of clause 2 of Schedule 1 to the Excise Regulation.
Table item 4 of clause 2 of Schedule 1 to the Excise Regulation.
Table item 5 of clause 2 of Schedule 1 to the Excise Regulation.
Table item 8 of clause 2 of Schedule 1 to the Excise Regulation.
Table item 9 of clause 2 of Schedule 1 to the Excise Regulation.
Subsection 77L(1) of the Excise Act.
Subsection 77L(2) of the Excise Act.
Section 22 of the Excise Regulation.
Section 23 of the Excise Regulation. A residential premises has the same meaning as given in the Fuel Tax Act 2006 . The meaning of 'carrying on an enterprise has the same meaning as given in the A New Tax System (Goods and Services Tax) Act 1999 .
Subsection 77L(5) of the Excise Act.
Subsection 77M(1) of the Excise Act.
Subsection 77M(2) of the Excise Act.
Section 117BA of the Excise Act.
Section 117BA of the Excise Act.
Table item 11 of clause 2 of Schedule 1 to the Excise Regulation.
Table item 1 of clause 1 of Schedule 1 to the Excise Regulation.
Table item 2 of clause 1 of Schedule 1 to the Excise Regulation.
Table item 4 of clause 1 of Schedule 1 to the Excise Regulation.
Table item 3 of clause 1 of Schedule 1 to the Excise Regulation.
Section 160A of the Excise Act and table item 5 of clause 1 of Schedule 1 to the Excise Regulation.
Table item 6 of clause 1 of Schedule 1 to the Excise Regulation.
Table item 7 of clause 1 of Schedule 1 to the Excise Regulation.
Table item 7A of clause 1 of Schedule 1 to the Excise Regulation.
Subsection 12(4) of the Excise Regulation.
Table item 13 of clause 1 of Schedule1 to the Excise Regulation.
Table items 14 and 15 of clause 1 of Schedule 1 to the Excise Regulation.
Table items 16 and 17 of clause 1 of Schedule 1 to the Excise Regulation.
Table items 19 and 20 of clause 1 of Schedule 1 to the Excise Regulation.
Table item 18 of clause 1 of Schedule 1 to the Excise Regulation.
Section 79 of the Excise Act and section 14 of the Excise Regulation.
Subsection 15(1) of the Excise Regulation.
Subsection 15(1) of the Excise Regulation.
Subsection 15(2) of the Excise Regulation.
Subsection 15(2) of the Excise Regulation.
Subsection 15(1) and clause 1(2) of Schedule 1 to the Excise Regulation.
Subsection 16(1) of the Excise Regulation.
Subsection 16(2) of the Excise Regulation.
Subsection 16(3) of the Excise Regulation.
Section 80 of the Excise Act.
Section 160A of the Excise Act.
Section 64 of the Excise Act.
Clause 2 of Schedule 1 to the Excise Regulation.
Subsection 160A(5) of the Excise Act.
Paragraph 77HA(1)(a) of the Excise Act.
Paragraph 77HA(1)(b) of the Excise Act.
Subparagraph 77HA(1)(c)(i) of the Excise Act.
Subsection 77HA(2) of the Excise Act.
Section 77HB of the Excise Act.
Section 77HB of the Excise Act.
Section 10 of the Excise Regulation.
Section 11 of the Excise Regulation.
Table item 7 of clause 1 of Schedule 1 to the Excise Regulation.
Table item 3 of subsection 16(1) of the Excise Regulation.
Paragraphs 120(1)(iv) and 120(2)(b) of the Excise Act.
Paragraph 120(1)(vi) and subsection 120(3) of the Excise Act.
The term used in section 58 of the Excise Act is 'entry for home consumption'.
Note the legislation uses the term 'delivered for home consumption' (see, for example, sections 61 and 61C of the Excise Act).
See R v Lyon [1906] HCA 17; Collector of Customs (NSW) v Southern Shipping Co Ltd [1962] HCA 20; Carmody v F C Lovelock Pty Ltd [1970] HCA 35; Caltex Australia Petroleum Pty Ltd v Commissioner of Taxation [2008] FCA 1951 and Moama Refinery Pty Ltd v Chief Executive Officer of Customs [2001] FCA 1287.
For example, a decision not to issue a movement permission under section 61A of the Excise Act.
Objections are governed by Part IVC of the Taxation Administration Act 1953 (TAA).
These are usually conducted in the Administrative Review Tribunal or the Federal Court.
Section 39Q of the Excise Act.
Paragraph 162C(1)(c) of the Excise Act.
Subparagraphs 162C(1)(i) and (j) of the Excise Act.
Section 14ZU of the TAA.
Section 359-5 of Schedule 1 to the TAA.
Section 5 of the Excise Act and section 4D of the Crimes Act 1914 .
Section 127A of the Excise Act.
Section 116 of the Excise Act.
Section 151 of the Excise Act.
Part XA of the Excise Act.
Subsections 117(2) and 117B(2) of the Excise Act.
Section 129B of the Excise Act.
Section 129F of the Excise Act.
Section 6B of the Excise Act.
As at April 2025, the Commonwealth department responsible for the administration of the Fuel Quality Standards Act 2000 is the Department of Climate Change, Energy, the Environment and Water.
The industry-wide accepted method for temperature conversion for both density and volume. American Society for Testing and Materials (ASTM), American Petroleum Institute, The Institute of Petroleum (1980) Petroleum Measurement Tables, Volume Correction Factors, Volume III, ASTM, Philadelphia.
Section 24 of the Excise Regulation.
ASTM, The Institute of Petroleum, American Petroleum Institute, (1986) Petroleum Measurement Tables for Light Hydrocarbon Liquids – Density range 0.500 to 0.653 Kg/litre at 15° C .
American Petroleum Institute (1986) Manual of Petroleum Measurement Standards, Chapter 11.2.2 Compressibility Factors for Hydrocarbons: 0.350-0.637 Relative Density (60 °F/60 °F) and -50 °F to 140 °F Metering Temperature, 2nd edition , www.api.org
Subsection 24(3) of the Excise Regulation.
It is included by paragraph 10(d) in the preamble to item 10 of the Schedule.
If this product is for use for any purpose other than in an aircraft it is classified to subitem 10.5 of the Schedule, which attracts duty at the rate of $0.508 per litre.
If this product is for use for any purpose other than in an aircraft it is classified to subitem 10.16 of the Schedule, which attracts duty at the rate of $0.508 per litre.
Subsection 77H(2) of the Excise Act.
See Excise (Blending Exemptions) Instrument 2024.
Subsection 77H(2) of the Excise Act.
Section 77J of the Excise Act.
Subsection 77H(2) of the Excise Act.
This can occur in the production of emulsified diesel and water blends (sometimes known as 'aquadiesel').
Subsection 6G(2) of the Excise Tariff Act.
Subsection 3(4) of the Excise Tariff Act.
Section 77K of the Excise Act.
Subsection 4(1) of the Excise Act.
Subsection 4(1) of the Excise Act.
Item 9, Clause 2 of Schedule 1 to the Excise Regulation.
Section 77HB of the Excise Act.
Item 9, Clause 2 of Schedule 1 to the Excise Regulation.
Section 77HB of the Excise Act.
Paragraph 77HA(1)(a) of the Excise Act.
Paragraph 77HA(1)(b) of the Excise Act.
Subparagraph 77HA)(1)(c)(i)) of the Excise Act.
Section 77HA(2) of the Excise Act.
Cooper Bros Holdings Pty Ltd trading as Triple R Waste Management and Commissioner of Taxation [2013] AATA 99.
Subsection 3(6) of the Excise Tariff Act.
See also paragraphs 75 to 81 of Product Grants and Benefits Ruling PGBR 2012/1 Product Stewardship ( Oil ) Benefit: the meaning of the expression 'goods produced from used oil' and the terms 'filtered', 'de-watered', and 'de-mineralised' for the purposes of the Product stewardship for oil benefit scheme .
Section 25 of the Excise Act.
Section 26 of the Excise Act.
Section 275 of the Excise Act.
Section 117A of the Excise Act.
Section 61A of the Excise Act.
Section 61 of the Excise Act.
Section 61C of the Excise Act.
Section 51 of the Excise Act.
Section 120 of the Excise Act.
Paragraphs 120(1)(iv) and 120(2)(b) of the Excise Act.
Section 49 of the Excise Act.
Section 52 of the Excise Act.
Section 92 of the Excise Act.
The term used in section 58 of the Excise Act is 'entry for home consumption'.
Note the legislation uses the term 'delivered for home consumption' (see, for example, sections 61 and 61C of the Excise Act).
See R v Lyon [1906] HCA 17; Collector of Customs (NSW) v Southern Shipping Co Ltd [1962] HCA 20; Carmody v F C Lovelock Pty Ltd [1970] HCA 35; Caltex Australia Petroleum Pty Ltd v Commissioner of Taxation [2008] FCA 1951 and Moama Refinery Pty Ltd v Chief Executive Officer of Customs [2001] FCA 1287.
Subsection 77H(2A) of the Excise Act.
Subsection 77H(2B) of the Excise Act.
Subsection 77H(1) of the Excise Act.
Subsection 77H(2) of the Excise Act.
Subsection 77H(2AA) of the Excise Act.
Subsection 77H(5) of the Excise Act.
Part VAA of the Customs Act.
This can occur in the production of emulsified diesel and water blends (sometimes known as 'aquadiesel').
Section 25 of the Excise Act.
Section 26 of the Excise Act.
Section 27 of the Excise Act.
Section 117A of the Excise Act.
Section 61A of the Excise Act.
Section 61 of the Excise Act.
Section 61C of the Excise Act.
Section 117B of the Excise Act.
Section 51 of the Excise Act.
Section 120 of the Excise Act.
Paragraphs 120(1)(iv) and 120(2)(b) of the Excise Act.
Section 49 of the Excise Act.
Section 52 of the Excise Act.
Section 92 of the Excise Act.
The term used in section 58 of the Excise Act is 'entry for home consumption'.
Note the legislation uses the term 'delivered for home consumption' (see, for example, sections 61 and 61C of the Excise Act).
See R v Lyon [1906] HCA 17; Collector of Customs (NSW) v Southern Shipping Co Ltd [1962] HCA 20; Carmody v F C Lovelock Pty Ltd [1970] HCA 35; Caltex Australia Petroleum Pty Ltd v Commissioner of Taxation [2008] FCA 1951 and Moama Refinery Pty Ltd v Chief Executive Officer of Customs [2001] FCA 1287.
'Fuel tax' is defined in section 110-5 of the Fuel Tax Act 2006 and means 'duty that is payable on fuel under:
- (a)
- the Excise Act 1901 and the Excise Tariff Act 1921 ; or
- (b)
- under the Customs Act 1901 and the Customs Tariff Act 1995 ;
other than any duty that is expressed as a percentage of the value of fuel for the purposes of section 9 of the Customs Tariff Act 1995 '.
Subsection 78(3) of the Excise Act.
Paragraph 77H(1)(b) of the Excise Act.
Section 77J of the Excise Act.
Subsection 78(3) of the Excise Act.
Section 50 of the Excise Act.
Section 25 of the Excise Act.
Section 26 of the Excise Act.
Section 27 of the Excise Act.
Section 117A of the Excise Act.
Section 61A of the Excise Act.
Section 61 of the Excise Act.
Section 61C of the Excise Act.
Section 51 of the Excise Act.
Section 120 of the Excise Act.
Paragraphs 120(1)(iv) and 120(2)(b) of the Excise Act.
Section 49 of the Excise Act.
Section 52 of the Excise Act.
Section 92 of the Excise Act.
The term used in section 58 of the Excise Act is 'entry for home consumption'.
Note the legislation uses the term 'delivered for home consumption' (see, for example, sections 61 and 61C of the Excise Act.).
See R v Lyon [1906] HCA 17; Collector of Customs (NSW) v Southern Shipping Co Ltd [1962] HCA 20; Carmody v F C Lovelock Pty Ltd [1970] HCA 35; Caltex Australia Petroleum Pty Ltd v Commissioner of Taxation [2008] FCA 1951 and Moama Refinery Pty Ltd v Chief Executive Officer of Customs [2001] FCA 1287.
Whilst the Excise laws do not define recycling, the Commissioner's view on whether recycling constitutes manufacture is expressed in paragraphs 66 to 75M of Excise Ruling ER 2012/1 Excise: the meaning of the expression 'manufactured or produced' for the purposes of the Excise Acts .
Paragraph 66 of ER 2012/1.
Example 9 of ER 2012/1.
Example 10 of ER 2012/1.
Subitem 10(d) of the Schedule to the Excise Tariff Act.
Item 15 of the Schedule to the Excise Tariff Act.
Section 77J of the Excise Act.
Excise (Volume-recycled waste oil) Determination 2016 (No. 1) and Explanatory Statement.
Excise duty rate for diesel as at 3 February 2025.
Table item 18, subclause 1 of Schedule 1 to the Excise Regulation.
Section 110-5 of the Fuel Tax Act 2006 . Note products that are oils classified to item 15 of the Schedule to the Excise Tariff Act are not taxable fuels.
Section 25 of the Excise Act.
Section 26 of the Excise Act.
Section 27 of the Excise Act.
Section 117A of the Excise Act.
Section 61A of the Excise Act.
Section 61 of the Excise Act.
Section 61C of the Excise Act.
Section 51 of the Excise Act.
Section 120 of the Excise Act.
Paragraphs 120(1)(iv) and 120(2)(b) of the Excise Act.
Section 49 of the Excise Act.
Section 52 of the Excise Act.
Section 92 of the Excise Act.
The term used in section 58 of the Excise Act is 'entry for home consumption'.
Note the legislation uses the term 'delivered for home consumption' (see, for example, sections 61 and 61C of the Excise Act.).
See R v Lyon [1906] HCA 17; Collector of Customs (NSW) v Southern Shipping Co Ltd [1962] HCA 20; Carmody v F C Lovelock Pty Ltd [1970] HCA 35; Caltex Australia Petroleum Pty Ltd v Commissioner of Taxation [2008] FCA 1951 and Moama Refinery Pty Ltd v Chief Executive Officer of Customs [2001] FCA 1287.
References
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