Exemptions from the Product Stewardship Levy

It was not the original intent of the Product Stewardship for Oil Program to capture oils that are incorporated into products or end-uses that do not produce a recyclable waste oil stream and present a low risk to the environment.

Exemptions for single-use oils

Exemptions for single-use oils such as food grade white oil, polygylcol brake fluids and aromatic process oils came into effect on 15 April 2002. These products have characteristics that are distinguishable from other oil products, and as such, they are able to be clearly defined as exempt under the Excise Tariff Amendment Act (No. 1) 2002 and the Customs Tariff Amendment Act (No. 2) 2002.

Exemptions for multi-use oils

Providing exemptions for multi-use oils has required a different approach, as both the oil and its use need to be specified in order to ensure the exemption is applied appropriately.

On 1 December 2003, the Product Stewardship (Oil) Legislation Amendment Act (No. 1) 2003 commenced. This allows exemptions for specific uses of oil that do not create a recyclable waste stream and pose a low risk to the environment.

Under these legislation amendments, a category of benefit payment (to be known as category 8 benefit) is paid, at the same rate as the levy which is 8.5 cents per litre from 1 July 2014, for uses of oil as approved by the Minister for the Environment and Heritage by Commonwealth Gazette notice.

Applying for registration for a category 8 benefit payment

To apply for registration for a category 8 benefit payment, or find out whether a specific oil and end use is eligible, call the Australian Taxation Office on 1300 657 162.

Schedule 1, Product Stewardship (Oil) Declaration 2003
Gazetted oils and gazetted uses on or after 27 March 2003 (section 3)
Item Gazetted oil Gazetted use
1 Naphthenic process oil Incorporation into any of the following:
(a) a dedusting composition for insulating material;
(b) a dewatering flocculant composition;
(c) a mould release composition;
(d) an adhesive;
(e) an explosive of the Ammonium Nitrate Fuel Oil (ANFO) type;
(f) an ink, varnish or resin for printing;
(g) a paint defoamer;
(h) a rock drilling composition;
(i) a rubber compound
2 Paraffinic process oil Incorporation into any of the following:
(a) a dedusting composition for insulating material;
(b) a dewatering flocculant composition;
(c) a mould release composition;
(d) an adhesive;
(e) an agricultural spray;
(f) an anti-bloat composition;
(g) an explosive of the Ammonium Nitrate Fuel Oil (ANFO) type;
(h) an ink, varnish or resin for printing;
(i) a personal care product;
(j) a rock drilling composition;
(k) a rubber compound
3 Paraffinic (C14-17) process oil Incorporation, by the process of chlorination, into a medium chain chlorinated hydrocarbon
4 Petroleum jelly Incorporation into an ink, varnish or resin for printing
5 Polyisobutylene succinic anhydride Incorporation into an explosive composition
6 Vegetable-derived polyethers Incorporation into a textile fibre lubricant
7 White mineral oil Incorporation into a personal care product
Note. If incorporation of a gazetted oil into a particular product is declared to be a gazetted use, a claim under subsection 9 (3) of the Product Stewardship (Oil) Act 2000 for product stewardship (oil) benefits in relation to that use may only be made by a person who incorporates the oil into the product and not by a person who uses the product after the oil has been incorporated into it.