Ruling Compendium PGBR 2012/1EC







This edited version of the Compendium of Comments is not intended to be relied upon. It provides no protection from primary tax, penalties, interest or sanctions for non-compliance with the law. | This is a compendium of responses to the issues raised by external parties to draft PGBR 2012/D1 - Product Stewardship (Oil) Benefit: the meaning of the expression 'goods produced from used oil' and the terms 'filtered', 'de-watered', and 'de-mineralised' for the purposes of the Product stewardship for oil benefit scheme . | This compendium of comments has been edited to maintain the anonymity of entities that commented on the draft Ruling. | ATO Response/Action taken | General enquiry as to whether or not the Ruling impacted on producers of gazetted oils (item 8 of the table in subregulation 4(1) of the Product Stewardship (Oil) Regulations 2000). | The Ruling only applies to producers of high grade industrial burning oils (item 5 of the table in subregulation 4(1) of the Product Stewardship (Oil) Regulations 2000) and low grade industrial burning oils (item 6 of the table in subregulation 4(1) of the Product Stewardship (Oil) Regulations 2000). However, the Commissioner's views expressed in relation to items 5 and 6, where relevant, will have application to the Product stewardship oil (PSO) scheme generally. | Proposed minor amendments to various paragraphs (that is, 8, 16, 31, 47, 51, 59, 61,105, 110 & 118) to improve clarity and certainty. | Agreed. Paragraphs amended. | The Ruling states that the ordinary meaning of the word to be attributed to terms 'filtered', 'de-watered' and 'de-mineralised' rather than a technical meaning. However, Ruling is not clear in all instances (for example, paragraphs 94 to 97 and 116) that the terms may have a particular meaning in the context of the product stewardship oil scheme. | Wording reviewed and amended where necessary to improve clarity. Ruling to reflect the ordinary meaning of the terms 'filtered', 'de-watered' and 'de-mineralised'. | For completeness, the Ruling should provide an explanation of the second limb of the meaning of 'recycled oil'. | Agreed. Ruling only deals with high grade and low grade industrial burning oils. Footnote to paragraph 22 amended to provide further guidance. | Ruling section needs to include a reference to the conclusion reached by the Commissioner that the ordinary meaning of 'produce' includes 'manufacture'. | Agreed. Ruling section amended to include a reference to the Commissioner's conclusion that the ordinary meaning of 'produce' includes 'manufacture'. | In paragraph 50, replace the term 'solid contaminants' with either 'impurities' or 'contaminants' since the ordinary meaning of 'filtered' includes the removal of suspended impurities or to recover solids. | Use of term 'solid contaminants' reviewed. Ruling and Explanation sections to refer to both suspended impurities and solid contaminants. | Paragraph 51. Recommend that the meaning of the term 'de-watering' be defined as "The Commissioner considers that used oil has been 'de-watered' if water arising through the oil's use has been removed from the oil such that the water content of the used oil is less than 0.1% by weight when assessed by ASTM D95, ASTM D6304 or equivalent standard." De-watering should result in a de-watered 'fuel' and oily water by-product. | However, within the current legislative framework, a legislative amendment would be required to give effect to such a specific definition. Matter referred to Treasury and the Department of Sustainability, Environment, Water, Population and Communities. | The discussion on the meaning of 'de-watered' has been strengthened to highlight used oil must be subjected to a process and water present in the oil must be separated and removed from the used oil. | De-mineralising should result in a de-mineralised 'fuel' and a high mineral content (low grade - suitable for category 6) fuel by-product or equivalent high mineral content aqueous or solid. | The discussion on the meaning of 'de-mineralised' has been strengthened to highlight used oil must be subjected to a process and that contaminants must be removed from the used oil. | Proposed minor amendments to various paragraphs so as to improve clarity of the Ruling. | Proposed various policy and legislation initiatives aimed at enhancing the objectives of the Product stewardship oil scheme. | Matter referred to Treasury and the Department of Sustainability, Environment, Water, Population and Communities. | 124. The Commissioner considers that used oil is de-mineralised if it is subjected to a process that removes or reduces the amount of soluble and insoluble metals, inorganic materials and minerals in the used oil. | Paragraph amended to strengthen the meaning of 'de-mineralised'. | Recommended various policy initiatives aimed at enhancing the outcomes of the Product stewardship oil scheme.