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Media Release
Australian Minister for the Environment and Heritage
Senator the Hon. Ian Campbell

9 May 2006

$30.1 million to promote oil recycling

The Australian Government will boost its flagship oil recycling programme with $30.1 million in the 2006-07 Federal Budget, the Minister for the Environment and Heritage, Senator Ian Campbell, announced today.

"This funding over the next three years will be provided to assist used oil recyclers to adjust to the Federal Government's Fuel Excise Reform," Senator Campbell said.

"This temporary support will ensure that industry has sufficient time to adjust to the new excise arrangements. Recyclers will receive this assistance through the existing benefit arrangements."

Under the Fuel Excise Reform process, the Australian Government will modernise and simplify the fuel excise system, commencing on 1 July 2006 and concluding on 1 July 2015.

"Removing fuel excise from most business inputs will lower compliance costs, reduce tax on business and remove the burden of excise from thousands of businesses and households," Senator Campbell said.

Through the Product Stewardship for Oil Programme, the Australian Government encourages the collection and recycling of used oils which aims to ensure the environmentally sustainable management and re refining of used oil.

Since the programme started in 2000, grants have been provided to state and local governments to establish a network of 828 used oil collection facilities.

Under the programme, the volume of used oil collected, recycled and reused in Australia has increased from 160 million litres to over 220 million litres a year.

"About 80 per cent of this valuable resource is now collected and reused - helping to protect Australia's environment from pollution," Senator Campbell said.

"Government, industry and the community have invested significant time and energy in developing a sustainable used oil recycling industry in Australia.

"This $30.1 million investment will continue the gains made over the past few years for Australia's environment and for the sustainability of the used oil recycling industry," Senator Campbell said.

For more information:

Media contact:
Marianne McCabe on 02 6277 7640 or 0400 389 580

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Other 2006-07 Budget media releases

Commonwealth of Australia