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Department of Climate Change, Energy, Enviroment and Water

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  1. Home
  2. Environment
  3. Environment protection
  4. Used oil recycling
  5. Product Stewardship for Oil (PSO) Scheme

Sidebar first - EN - Protection

  • Used oil recycling
    • Product Stewardship for Oil Scheme
      • Levy (excise)
      • Exemptions
      • Benefits
      • Legislation
      • Statistics
    • Recycling your oil
      • Uses for recycled oil
      • Why we should recycle used motor oil

Product Stewardship for Oil (PSO) Scheme

The Australian Government is providing $7.8 million in temporary funding to support oil recycling facilities affected by COVID-19.

The category 1 benefit paid to oil recyclers was temporarily increased from 50c/L to 62c/L for the period 1 July 2020 to 31 December 2020.

This extra funding will help protect jobs and the environment.

The Product Stewardship for Oil (PSO) Scheme pays incentives to industry to encourage the environmentally sustainable management and re-refining of used and recycled oil.

The framework and incentives paid are set under the Product Stewardship (Oil) Act 2000. A levy-benefit system, the PSO imposes a duty of 8.5c/l or kg on oil based lubricants which funds benefits paid to used oil recyclers through the Australian Taxation Office (ATO).

There are two parts to the arrangements:

  • product stewardship levy
  • product stewardship benefits.

Outcomes

The scheme was introduced in 2001 to increase the amount of used oil recycled in Australia. Since then, the amount of oil that Australia collects and recycles has risen from none to over 320 megalitres of base lubricating oil every year. That’s more than half the oil sold in Australia each year. Or equivalent to 160 Olympic size swimming pools.

Independent review

Deloitte Access Economics Australia has completed the fourth independent review of the Product Stewardship (Oil) Act 2000. The report was tabled in Parliament on 10 August 2021 along with the Australian Government’s response.

The review found that the Product Stewardship for Oil Scheme is achieving the objects of the legislation to:

  • provide a product stewardship arrangement for used oils
  • ensure environmentally sustainable management, refining and reuse of used oil
  • support economic recycling options for used oil.

The government will consult with industry and other stakeholders on the review’s findings and recommendation.

Statistics

Statistics showing volumes and payments for Product Stewardship Oil benefits and levies in recent financial years are now available.

Further information

  • Fourth independent review of the Product Stewardship (Oil) Act 2000
  • Australian Government response to the independent report: Fourth Product Stewardship (Oil) Act 2000 review
  • Used oil recycling
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Last updated: 10 October 2021

© Department of Climate Change, Energy, the Environment and Water

We acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture. We pay our respects to their Elders past, present and emerging.