ATO Interpretative Decision
ATO ID 2002/890
Excise
Excise - Payments - Product Stewardship (Oil) Scheme - is excess product 'used oil'?FOI 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 oil that is excess product considered to be 'used oil' for the purposes of section 6 of the Product Stewardship (Oil) Act 2000 (the Act) and therefore eligible for a product stewardship (oil) benefit?
Decision
No. Oil that is excess product is not considered to be 'used oil' for the purposes of section 6 of the Act and therefore is not eligible for a product stewardship (oil) benefit as it has not been employed for some purpose.
Facts
An entity blends and processes petroleum products.
As part of the blending or processing, some oil is excess product. Excess product may result from product not meeting certain specifications, an accumulation of returned or manufactured 'off-specification' product in a 'slops' tank, and cleaning sludge from the bottom of storage tanks.
The excess product is then subjected to processes described in Product Stewardship (Oil) Regulations 2000 subregulation 4(1).
Reasons for Decision
Under the Act, you are entitled to a product stewardship (oil) benefit for the sale or consumption of recycled oil that you have used or recycled in Australia.
Recycled oil is defined in section 6 of the Act as follows:
'
recycled oil
means:
Consistent with the ordinary meaning of 'used', the ATO will accept that an oil product has been used if it has been employed for some purpose. For example, used oil may include oil that has been used to flush lines during the blending process.
It does not, however, include oil that is considered to be waste oil in so far as it is excess product for the purposes of commercial blending or processing, as the excess product has not been employed for some purpose.
Therefore excess product is not considered to be used oil for the purposes of the Act and therefore is not eligible for a product stewardship (oil) benefit.
Date of decision: 16 August 2002
Legislative References:
Product Stewardship (Oil) Act 2000
section 6
subregulation 4(1)
Keywords
Excise
Product stewardship oil scheme
Excise payments
ISSN: 1445-2782