9 May
2006 - The Australian Government will boost its
flagship oil recycling programme with $30.1 million
in the 2006-07 Federal Budget, the Minister for
the Environment and Heritage, Senator Ian Campbell,
announced today.
"This funding over the
next three years will be provided to assist used
oil recyclers to adjust to the Federal Government's
Fuel Excise Reform," Senator Campbell said.
"This temporary support
will ensure that industry has sufficient time
to adjust to the new excise arrangements. Recyclers
will receive this assistance through the existing
benefit arrangements."
Under the Fuel Excise Reform
process, the Australian Government will modernise
and simplify the fuel excise system, commencing
on 1 July 2006 and concluding on 1 July 2015.
"Removing fuel excise from
most business inputs will lower compliance costs,
reduce tax on business and remove the burden of
excise from thousands of businesses and households,"
Senator Campbell said.
Through the Product Stewardship for Oil Programme,
the Australian Government encourages the collection
and recycling of used oils which aims to ensure
the environmentally sustainable management and
re refining of used oil.
Since the programme started
in 2000, grants have been provided to state and
local governments to establish a network of 828
used oil collection facilities.
Under the programme, the volume
of used oil collected, recycled and reused in
Australia has increased from 160 million litres
to over 220 million litres a year.
"About 80 per cent of this
valuable resource is now collected and reused
- helping to protect Australia's environment from
pollution," Senator Campbell said.
"Government, industry and
the community have invested significant time and
energy in developing a sustainable used oil recycling
industry in Australia.
"This $30.1 million investment
will continue the gains made over the past few
years for Australia's environment and for the
sustainability of the used oil recycling industry,"
Senator Campbell said.
Why is this important?
• This Budget measure will ensure that the oil
recycling industry will have time to adapt to
the changes arising from the Federal Government's
Fuel Excise Reform by adding an additional benefit
for three years to the current product stewardship
(oil) benefit scheme.
• The extra time given to the oil recycling industry
to adapt will avoid potentially undermining the
success of the Product Stewardship for Oil Programme
in removing used oil from Australia's environment.
Who will benefit?
• There are currently 69 recyclers who recycle
used oil to generate burner fuel. Approximately
95 per cent, 200 million litres, of the used oil
currently recycled in Australia becomes burner
fuel. Many recyclers are small businesses operating
in regional areas.
• Eligible recyclers will receive:
o 7.557 cents per litre from 1 July 2006 to 30
June 2007;
o 5 cents per litre from 1 July 2007 to 30 June
2008; and
o 2.5 cents per litre from 1 July 2008 to 30 June
2009.
• The additional amount of product stewardship
(oil) benefit will cease after 30 June 2009.
What funding is the Government committing to the
initiative?
• The funding committed to this initiative is
$30.1 million over three years: $15.1 million
in 2006-07; $10 million in 2007-08; and $5 million
in 2008-09.
What have we done in the past?
• In the past temporary support has been provided
in response to the removal of a similar excise
remission.
When will the initiative conclude?
• The initiative will conclude on 30 June 2009.
