ATO Interpretative Decision

ATO ID 2002/791 (Withdrawn)

Excise

• ATOID 2002/791 is withdrawn as it is superseded by ATOID 2008/38
  This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Issue

Can a recycler who manufactures a number of products from recycled waste oil, where the recycled oil is equivalent to high grade industrial burning fuel, claim a benefit at the rate in Item 5 of the Table in the Product Stewardship (Oil) Regulations 2000 sub regulation 4(1) (the Table)?

Decision

The applicant is eligible for a benefit at the rate specified in Item 5 of the Table, for the volume of recycled oil product recovered from waste oil which has been filtered, de-watered and de-mineralised. The volume on which the benefit is payable is the volume measured at the end of the recycling process and before any further manufacture is undertaken.

Facts

The applicant manufactures a number of products from recycled oil which it processes from 'waste oil', as that term is defined in subsection 6(1) of the Product Stewardship (Oil) Act 2000 (PSO Act). The waste oil is filtered, de-watered, and de-mineralised at which point it meets the description of a 'high grade industrial burning oil'. The recycled oil is then subjected to further manufacture or packaging into specific products for sale or self-consumption.

The applicant is registered under the Product Grants and Benefits Administration Act 2000 to make a claim for the benefit and meets the other statutory requirements.

The applicant has sought advice as to whether it is entitled to a benefit of five cents per litre for the end products it manufactures.

Reasons for Decision

The PSO Act establishes a scheme whereby recyclers of oil in Australia are entitled to a benefit in respect of the sale or consumption of recycled oil.

An entity is entitled to a product stewardship (oil) benefit for the sale, or self-consumption, of oil that it has recycled if:

•

the entity is registered to make a claim; and

•

the entity is licensed under section 39A of the Excise Act 1901;

•

and satisfies any other prescribed requirements.

The amount of the benefit is calculated in accordance with the Table. Item 5 in the Table relevantly provides that eligible high-grade industrial burning oils attract a levy at the rate of 5 cents per litre.

When an entity is entitled to a benefit for recycled waste oil, the amount of the benefit is calculated according to the volume of the recycled oil it recovers from the waste oil.

This applicant is entitled to a benefit for the volume of recycled oil, which is recovered from the waste oil before the recycled product is subject to further manufacture or packaging.

As, prior to further manufacture or packaging, the recycled oil falls within the description of 'high grade industrial burning oils (filtered, de-watered and de-mineralised)' in Item 5 of the Table, the volume of oil recovered by recycling will attract a benefit of five cents per litre.

Legislative References:
Excise Act 1901
   section 39A

Keywords
Recycled waste oil
Product stewardship oil scheme
PSO recycling

Business Line:  Excise

Date of publication:  2 August 2002

ISSN: 1445-2782