Product Stewardship Levy (excise)

The product stewardship levy is payable by oil producers and importers for petroleum-based oils and their synthetic equivalents. The levy increased from 5.449 cents per litre (or kilogram for greases) to 8.5 cents per litre on 1 July 2014.

The levy offsets the costs of benefits paid to oil recyclers as an incentive to undertake increased recycling of used oil. This ensures that some of the costs of used oil recycling are borne by the markets that gain the benefit from the production and use of that oil, rather than from public monies or other markets. In economic terms, it 'internalises the externalities'

No oil is levied twice, no 'eligible' lubricant escapes the levy, imported and domestically-produced oils are treated equitably (to the extent possible), and exported oil is not levied. Levied oil, which is incorporated into products that are subsequently exported, may be subject to drawback arrangements. For further information on duty drawback contact the Australian Taxation Office on 1300 657 162.

Questions relating to whether a particular product attracts the PSO levy should be directed to the Australian Taxation Office on 1300 657 162, where the levy is paid under the Excise Tariff legislation (oil produced in Australia), or to the Australian Customs Service, Classification Area on (02) 6275 6497, where the levy is paid under the Customs Tariff legislations (oil imported to Australia).

Exemptions