ATO ID 2008/38: PSO: entitlement for a PSO benefit where category 5 oil is not used as a burner fuel
Date of decision: 22 February 2008
Business line: Indirect Tax

Issue
Is used oil that has been filtered, de-watered and de-mineralised required to be used as a burning oil to meet the description of a recycled oil in item 5 of the table in subregulation 4(1) of the Product Stewardship (Oil) Regulations 2000 (PSO Regulations)?

Decision
No, used oil that has been filtered, de-watered and de-mineralised is not required to be used as a burning oil to meet the description of a recycled oil in item 5 of the table in subregulation 4(1) of the PSO Regulations.

Facts
An oil recycler filters, de-waters and de-mineralises used oil. The recycler sells the recycled oil for uses other than as a burner fuel.

Reasons for decision
Summary: Subsection 9(1) of the Product Stewardship (Oil) Act 2000 (PSO Act) provides that an entity is entitled to a benefit for the sale or consumption of recycled oil that the entity has recycled in Australia. Subsection 10(1) of the PSO Act explains that the amount of benefit for a claim period is worked out in accordance with the PSO Regulations. Subregulation 4(1) of the PSO Regulations includes a table which itemises the different categories of recycled oil and the benefit that is payable. Item 5 in that table describes the recycled oil as 'high grade industrial burning oils (filtered, de-watered and de-mineralised)'. There is no provision in the PSO Regulations which stipulates the recycled oil described in item 5 of the table in subregulation 4(1) of the PSO Regulations must be used as a high grade burner fuel. It is considered that the phrase 'high grade industrial burning oils' is a description for recycled oil that has been filtered de-watered and de-mineralised. Hence, a quantity of used oil which has been filtered, de-watered and de-mineralised meets the description of item 5 of the table in subregulation 4(1) of the PSO Regulations irrespective of whether or not it is used as a high grade industrial burning oil.

Legislative references: Product Stewardship (Oil) Act 2000 subsection 9(1) subsection 10(1)
Subject references: PSO recycling