Product Stewardship for Oil Program (PSO)
The Product Stewardship for Oil Program (PSO) was introduced by the Australian Government in 2001 to provide incentives to increase used oil recycling. The Program, administered by the Department of the Environment, aims to encourage the environmentally sustainable management and re-refining of used oil and its re-use.
The Product Stewardship (Oil) Act 2000 establishes the general framework and benefit entitlements of the PSO arrangements. The arrangements comprise a levy-benefit system, where an 8.5 cents per litre levy on new oil, helps fund benefit payments to used oil recyclers. These arrangements provide incentives to increase used oil recycling in the Australian community.
There are 2 parts to the arrangements:
Third independent review of the Product Stewardship (Oil) Act 2000
The third independent review of the Product Stewardship (Oil) Act 2000 was completed in September 2013 and tabled in Parliament on 12 December 2013.
The 2014-15 Budget contained a measure to restore the Product Stewardship for Oil scheme to being budget neutral over the forward estimates period by increasing the rate of the levy to 8.5 cents per litre of oil (from 5.449). There were no other changes to benefit rates.
The Government is considering the remaining recommendations of the review and expects to respond later in 2014.
The Product Stewardship (Oil) Act 2000 also establishes the Oil Stewardship Advisory Council.
Department of the Environment
Australian Taxation Office
1300 657 162
Australian Customs Service
02 6275 6497