Second Reading Speech
This Bill amends the Excise Tariff Act 1921 and is part of a package of Bills that will give effect to the Government's commitment to restore the Product Stewardship for Oil Scheme to being budget neutral over the forward estimates.
The Product Stewardship for Oil Scheme aims to ensure the environmentally sustainable management, re-refining and reuse of used oil and to support economic recycling options for used oil. The Scheme offers a subsidy for the proper recycling of old oils, funded by a levy on new oils and greases.
The Scheme was intended to be self-funding, with the levy covering the anticipated cost of stewardship rebates. However, in 2013-14 the Scheme is estimated to run a deficit of approximately $10 million which is expected to grow.
This Bill increases the rate of the Scheme's levy payable by oil producers for petroleum-based oils and their synthetic equivalents from 5.449 cents per litre of oil or kilogram of grease to 8.5 cents.
The Government intends to separately make corresponding amendments to the Product Stewardship (Oil) Regulations 2000 which will ensure that Category 8 oils, being those which are a low risk to the environment, continue to not be affected by the rate of the levy. Further details of this Bill are contained in the explanatory memorandum.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
