Tanya Plibersek (Sydney, Australian Labor Party, Minister for the Environment and Water) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This is one of two bills to bring the Product Stewardship for Oil Scheme out of deficit and return it to fiscal neutrality as intended.

This bill would amend the Customs Tariff Act 1995 to increase the rate of customs duty payable on the import of relevant products from 8.5c per litre or kilogram to 14.2c per litre or kilogram.

This is, as I've just said, a very important scheme that ensures our waste oil is recycled into new products, such as base oil that can be used to make car engine oil.

Over its operational life waste oil picks up hazardous by-products including lead, cadmium, chromium and arsenic. Waste oil can damage our environment and health if it's not properly managed.

Under the Product Stewardship for Oil Scheme, 5.5 billion litres of recycled oil have been produced from waste oil.

This is a levy-benefit scheme where levies are paid on the importation or production of oils and their synthetic substitutes. The levies fund benefits are paid to oil re-refiners to ensure the financial responsibility to manage waste oil is borne by those who benefit from its use.

Since 2016 the scheme has fallen into deficit, levy collections have not been sufficient to cover the cost of benefit payments. This has meant that taxpayers have covered the difference.

An independent review highlighted this in 2020.

The passage of these two bills will remedy that long-running deficit.

It's not only fair but will have only a very small impact on oil users.

Debate adjourned.