This bill became law on Jun 28th, 2023.
Budget, tax & economy
Manufacturers of relevant petroleum-based oils and synthetic equivalents now pay 14.2 cents of exciseA tax charged on certain goods, here used to raise money from oil manufacturers and importers. per litre on products covered by sub-items 15.1 and 15.2.
Benefit paymentsPayments made to oil recyclers for turning used oil into recycled products. to used-oil recyclers had exceeded oil levy revenue for more than four years, leaving the Product Stewardship for Oil schemeThe Australian scheme that collects levy revenue from oil users and pays benefits to recyclers of used oil. running at a deficit while duty rates stayed static. The billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. raises exciseA tax charged on certain goods, here used to raise money from oil manufacturers and importers. on relevant oils and greases to help restore the scheme to fiscal neutralityThe point where the scheme collects enough revenue to cover what it pays out, without taxpayers covering a gap. and make oil users, not taxpayers, cover used-oil management costs.
Australia’s Product Stewardship for Oil schemeThe Australian scheme that collects levy revenue from oil users and pays benefits to recyclers of used oil. was created to make oil users fund the recycling of used oil, but from 2016 benefit paymentsPayments made to oil recyclers for turning used oil into recycled products. to recyclers outpaced the levy as static duty rates failed to keep up with growth in higher-benefit recycled oils. After a 2020 independent reviewA separate review in 2020 that found the levy needed to rise because the scheme was running a deficit. highlighted the need to lift the levy, Parliament passed this bill in June 2023 and the higher 14.2 cent exciseA tax charged on certain goods, here used to raise money from oil manufacturers and importers. rates began on 1 July 2023 so the scheme could move back towards fiscal neutralityThe point where the scheme collects enough revenue to cover what it pays out, without taxpayers covering a gap. instead of relying on taxpayers.
The main criticism was that the levy increase was a narrow funding fix and would need watching to make sure it actually restored the oil stewardship scheme without creating new problems for affected businesses. That concern was limited rather than broad: the Coalition still supported the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. while reserving judgment on results, and the Greens separately pushed for wider product stewardship reform beyond this bill.
Hon Tanya Plibersek MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 28 June 2023
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
34 days
From introduction to the latest recorded parliamentary step
Meaning
Manufacturers of relevant petroleum-based oils and synthetic equivalents now pay 14.2 cents of exciseA tax charged on certain goods, here used to raise money from oil manufacturers and importers. per litre on products covered by sub-items 15.1 and 15.2.
Manufacturers of relevant petroleum-based oils and synthetic equivalents now pay 14.2 cents of exciseA tax charged on certain goods, here used to raise money from oil manufacturers and importers. per kilogram on products covered by sub-items 15.3 and 15.4.
The higher oil levy is meant to stop taxpayers covering the shortfall in payments to Australian businesses that recycle used oil.
The change applies from 1 July 2023.
The purpose of the Excise Tariff Amendment (Product Stewardship for Oil) Bill 2023 (the Bill) is to amend the Excise Tariff Act to increase the rate of Excise duty imposed on the goods in item 15 to 14.2 cents per litre (for the goods listed in sub-items 15.1 and 15.2) and 14.2 cents per kilogram (for the goods listed in sub-items 15.3 and 15.4). This is intended to return the PSO Scheme to fiscal neutrality.Excise Tariff Amendment (Product Stewardship for Oil) explanatory memorandum
The purpose of the Excise Tariff Amendment (Product Stewardship for Oil) Bill 2023 (the Bill) is to amend the Excise Tariff Act to increase the rate of Excise duty imposed on the goods in item 15 to 14.2 cents per litre (for the goods listed in sub-items 15.1 and 15.2) and 14.2 cents per kilogram (for the goods listed in sub-items 15.3 and 15.4). This is intended to return the PSO Scheme to fiscal neutrality.Excise Tariff Amendment (Product Stewardship for Oil) explanatory memorandum
The passage of this bill will see this long-running deficit remedied. No longer will taxpayers pay for the scheme's shortfall.Minister's second reading speech
The table in subclause 2(1) would have the effect that the whole of the Bill would commence on 1 July 2023.Excise Tariff Amendment (Product Stewardship for Oil) explanatory memorandum
Context
Australia’s Product Stewardship for Oil schemeThe Australian scheme that collects levy revenue from oil users and pays benefits to recyclers of used oil. was created to make oil users fund the recycling of used oil, but from 2016 benefit paymentsPayments made to oil recyclers for turning used oil into recycled products. to recyclers outpaced the levy as static duty rates failed to keep up with growth in higher-benefit recycled oils. After a 2020 independent reviewA separate review in 2020 that found the levy needed to rise because the scheme was running a deficit. highlighted the need to lift the levy, Parliament passed this bill in June 2023 and the higher 14.2 cent exciseA tax charged on certain goods, here used to raise money from oil manufacturers and importers. rates began on 1 July 2023 so the scheme could move back towards fiscal neutralityThe point where the scheme collects enough revenue to cover what it pays out, without taxpayers covering a gap. instead of relying on taxpayers.
Parliament creates the Product Stewardship for Oil schemeThe Australian scheme that collects levy revenue from oil users and pays benefits to recyclers of used oil.
The Product Stewardship (Oil) Act 2000The law that created the used-oil recycling scheme and set out who can get benefits from it. established a levy-benefit scheme to encourage used-oil recycling and reuse in Australia.
Excise Tariff Amendment (Product Stewardship for Oil) explanatory memorandum ↗Oil levy revenue falls behind recycler payments
From 2016 the scheme moved into deficit as levy collections stopped covering benefit paymentsPayments made to oil recyclers for turning used oil into recycled products., leaving taxpayers to meet the gap.
Minister's second reading speech ↗Independent reviewA separate review in 2020 that found the levy needed to rise because the scheme was running a deficit. calls for a higher levy
A 2020 independent reviewA separate review in 2020 that found the levy needed to rise because the scheme was running a deficit. highlighted raising the levy as the way to address the scheme’s growing deficit.
Minister's second reading speech ↗Government introduces the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. to lift oil exciseA tax charged on certain goods, here used to raise money from oil manufacturers and importers.
The government introduced the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. to raise exciseA tax charged on certain goods, here used to raise money from oil manufacturers and importers. on relevant oils and greases from 8.5 cents to 14.2 cents per litre or kilogram.
Minister's second reading speech ↗Parliament passes the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. and it receives Royal AssentThe formal approval that turns a bill passed by Parliament into an Act.
The billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. passed both Houses on 22 June 2023 and became law on 28 June 2023, clearing the way for the levy rise to start.
Parliamentary timeline ↗Higher oil levy begins
From 1 July 2023 the new 14.2 cent exciseA tax charged on certain goods, here used to raise money from oil manufacturers and importers. rates applied so the scheme could better cover recycler benefits and return towards fiscal neutralityThe point where the scheme collects enough revenue to cover what it pays out, without taxpayers covering a gap..
Excise Tariff Amendment (Product Stewardship for Oil) explanatory memorandum ↗Legislative route
The billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling.'s purpose and principles.
Second reading moved
Referred to Committee (25/05/2023): Senate Environment and Communications Legislation Committee; Committee report (13/06/2023)
Referred to committee
APH bill page notesThe billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. reached this recorded parliamentary step.
The chamber agreed to the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. at second reading, meaning it accepted the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. at third reading, which completed passage through that chamber.
Third reading agreed to
The billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling.'s purpose and principles.
Second reading moved
The chamber agreed to the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. at second reading, meaning it accepted the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe formal approval that turns a bill passed by Parliament into an Act., turning the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. into an Act.
Key criticism
The main criticism was that the levy increase was a narrow funding fix and would need watching to make sure it actually restored the oil stewardship scheme without creating new problems for affected businesses. That concern was limited rather than broad: the Coalition still supported the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. while reserving judgment on results, and the Greens separately pushed for wider product stewardship reform beyond this bill.
No party represented in the debate opposed the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling., but some support was conditional or sought broader reform.
May not deliver as intended
Coalition speakers said the levy rise should be monitored closely and revisited if it does not restore the scheme as expected. The concern was about whether the new rate would work in practice, not about the goal of funding oil recycling.
Bill was too limited and did not broaden stewardship rules
The Australian Greens argued for a broader response, proposing mandatory design standards and national targets for product stewardship schemes and asking how the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. would advance a circular economyA system where materials are reused and recycled instead of being thrown away after one use.. This suggests a criticism that the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. only patched scheme funding instead of strengthening the wider regulatory framework.
Further sources
Votes
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.
House agreed to the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling.'s third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling.'s third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.
Senate
The Senate rejected Senator Whish-Wilson's proposal on voices. It would have added support for mandatory design standards and national targets for product stewardship schemes, and asked the government to explain how the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. supports a circular economyA system where materials are reused and recycled instead of being thrown away after one use..
Defeated on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
The Senate Journal records this outcome as defeated on voices.
Defeated on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
Parliamentary debate
Start here — lead voices
Plibersek supports the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling., saying it will restore the Product Stewardship for Oil SchemeThe Australian scheme that collects levy revenue from oil users and pays benefits to recyclers of used oil. to fiscal neutralityThe point where the scheme collects enough revenue to cover what it pays out, without taxpayers covering a gap. and stop taxpayers covering its deficit.
Read in Hansard ↗O'Brien says the coalition will support the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. because the oil stewardship scheme has worked well and the levy now needs to be lifted to cover the scheme's deficit.
Read in Hansard ↗Brian Mitchell supports the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling., saying it will fix the oil product stewardship scheme's ongoing deficit by lifting the levy so recycling costs are properly borne by users rather than taxpayers.
Read in Hansard ↗Malarndirri McCarthy supports the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling., saying it will return the Product Stewardship for Oil schemeThe Australian scheme that collects levy revenue from oil users and pays benefits to recyclers of used oil. to fiscal neutralityThe point where the scheme collects enough revenue to cover what it pays out, without taxpayers covering a gap. and stop taxpayers covering its deficit.
Read in Hansard ↗All speeches by bloc
3 speakers · 4 contributions · 3 support
“The bills before the House represent a solution to this problem. By raising the excise duty and customs duty from 8½ cents per litre to 14.2 cents per litre respectively, these bills aim to bring the scheme out of its deficit and ensure that it operates as intended.”Read the full speech in Hansard ↗
“The passage of this bill will see this long-running deficit remedied. No longer will taxpayers pay for the scheme's shortfall.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Tanya Plibersek on this bill. They are grouped here so the speaker is listed once.
Minister's second reading speech
Plibersek supports the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling., saying it will restore the Product Stewardship for Oil SchemeThe Australian scheme that collects levy revenue from oil users and pays benefits to recyclers of used oil. to fiscal neutralityThe point where the scheme collects enough revenue to cover what it pays out, without taxpayers covering a gap. and stop taxpayers covering its deficit. She argues the change is fair, protects recycling of waste oil, and will have only a very small impact on oil users.
“The passage of this bill will see this long-running deficit remedied. No longer will taxpayers pay for the scheme's shortfall.”Read this contribution in Hansard ↗
Second reading speech
Plibersek supports the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling., saying it will fund the environmentally sustainable management of used oil by making the relevant exciseA tax charged on certain goods, here used to raise money from oil manufacturers and importers. tariffs cover end-of-life costs instead of leaving the burden on taxpayers. She argues the scheme is important for protecting soils and waterways and for supporting oil recycling in a circular economyA system where materials are reused and recycled instead of being thrown away after one use..
“These two pieces of legislation will ensure the environmentally sustainable management of used oil is funded by those who benefit from the use of that oil. They will do this by ensuring the customs and excise tariffs collected on relevant oils are sufficient to fund their end-of-life management costs, reducing the burden on taxpayers.”Read this contribution in Hansard ↗
1 speaker · 1 support
“For now though, we thank the government for bringing these bills to the parliament. We also thank the various stakeholders with whom we have spoken over many years in this policy area. In relation to these two bills specifically, I thank them for their detailed discussions with us in the very short time since the bills were introduced. Their insights and expertise have been invaluable in helping us analyse this pieces of legislation and to help inform our approach to them.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling.'s purpose and principles.
House · Second reading debate
Second reading debate
The billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. at second reading, meaning it accepted the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling.'s purpose and principles.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. at second reading, meaning it accepted the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. in principle and allowed it to continue.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe formal approval that turns a bill passed by Parliament into an Act., turning the billThe bill that raised the excise rate on certain oils and greases to help fund used-oil recycling. into an Act.
Senate Environment and Communications Legislation Committee; Committee report (13/06/2023)
Referred to committee
Referred to Committee (25 May 2023): Senate Environment and Communications Legislation Committee; Committee report (13 June 2023)
APH bill page notes
