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ATO action to reduce the gap

How we support our clients to meet their compliance obligations.

Published 31 October 2024

The PSO levy is payable on the release of eligible oils and lubricants from licensed customs warehouses and excise premises into home consumption. We monitor levy payments as part of our broader excise administration.

Access to the PSO benefit is regulated through a registration process, which in many cases also involves compliance with the excise licensing and permission regimes. All oil recyclers must first obtain an excise manufacturer licence (except category 8 claimants).

There are only a small number of highly concentrated active oil recyclers which enables us to closely monitor and engage with industry participants.

Further, we have regular contact with recyclers and review quality testing results of recycled oils (category 1 benefits).

Our ongoing key strategies include:

  • maintaining active engagement with key industry participants
  • PSO benefit registration verification and claim assurance checks for oil recyclers
  • 6-monthly review of independent laboratory testing of oil recycled under the program to ensure standards are met for category 1 benefits.

Active compliance actions (audits and reviews) where appropriate.

QC103266