Steven Ciobo (Moncrieff, Liberal Party, Parliamentary Secretary to the Treasurer) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This b ill amends the Excise Tariff Act 1921 and is part of a package of b ills that will give effect to the g overnment’s commitment to restore the Product Stewardship for Oil Scheme to being budget neutral over the forward estimates.

The Product Stewardship for Oil Scheme aims to ensure the environmentally sustainable management, re - refining and reuse of used oil and to support economic recycling options for used oil. The s cheme offers a subsidy for the proper recycling of old oils, funded by a levy on new oils and greases.

The s cheme was intended to be self-funding, with the levy covering the anticipated cost of stewardship rebates. However, in 2013-14 the s cheme is estimated to run a deficit of approximately $10 million , which is expected to grow.

This b ill increases the rate of the s cheme’s levy payable by oil producers for petroleum based oils and their synthetic equivalents from 5.449 cents per litre of oil or kilogram of grease to 8.5 cents.

The g overnment intends to separately make corresponding amendments to the Product Stewardship (Oil) Regulations 2000 which will ensure that c ategory 8 oils, being those which are a low risk to the environment, continue to not be affected by the rate of the levy.

Further details of this b ill are contained in the explanatory memorandum.

I commend the bill to the House.

Debate adjourned.