{"id":"F2022L01222","name":"Product Stewardship (Oil) Regulations 2022","slug":"product-stewardship-oil-regulations-2022","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":102646,"registerId":"commonwealth-F2022L01222-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n This instrument is the Product Stewardship (Oil) Regulations 2022.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n This instrument is made under the Product Stewardship (Oil) Act 2000.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Schedules","content":"#### 4 Schedules\n\n Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Definitions","content":"#### 5 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n (a) gazetted oil;\n (b) gazetted use;\n (c) product stewardship (oil) benefit;\n (d) recycled oil;\n (e) used oil.\n (1) In this instrument:\n\n> Act means the Product Stewardship (Oil) Act 2000.\n\n> base oil means an oil that is free from contaminants or additives and to which other substances may be added for a particular application.\n\n> independent laboratory means a laboratory that:\n\n (a) is independent of the person making the claim for product stewardship (oil) benefit; and\n (b) operates at arm’s length from the person; and\n (c) has appropriate facilities, resources and expertise to conduct the tests necessary for the purposes of Schedule 1.\n\n> re‑refined: see subsection (2).\n\n (2) For the purposes of this instrument, a used oil has been re‑refined if it has been restored to the condition of a base oil:\n (a) first by either:\n (i) thin film evaporation; or\n (ii) vacuum distillation;\n followed by either:\n (iii) solvent extraction; or\n (iv) hydrofinishing; or\n (b) by another process approved in writing for this paragraph by the Minister that is:\n (i) consistent with the objects of the Act; and\n (ii) similar in purpose and effect to the processes mentioned in paragraph (a).","sortOrder":4},{"sectionNumber":"Part 2","sectionType":"part","heading":"Amounts of product stewardship (oil) benefit","content":"## Part 2—Amounts of product stewardship (oil) benefit","sortOrder":5},{"sectionNumber":"6","sectionType":"section","heading":"Amounts of product stewardship (oil) benefit","content":"#### 6 Amounts of product stewardship (oil) benefit\n\n (1) For the purposes of subsection 10(1) of the Act, the amount of product stewardship (oil) benefit for a claim period is:\n (a) for a recycled oil that is not also a gazetted oil for a gazetted use—the amount mentioned in column 2 of the first category in items 1 to 7 of the following table that applies to the recycled oil; and\n (b) for gazetted oil for a gazetted use:\n (i) if the oil is both a gazetted oil for a gazetted use and a recycled oil to which any of the categories in items 3 to 7 of the following table apply—the amount mentioned in column 2 of the first category in items 3 to 7 that applies to the oil; or\n (ii) in any other case—the amount covered by column 2 of item 8 of the following table.\n\n```html\n

Amount of product stewardship (oil) benefit

Item

Column 1

Category

Column 2

Amount (cents/l)

1

Re‑refined base oil (for use as a lubricant or a hydraulic or transformer oil) that meets the criteria mentioned in Schedule 1

50

2

Other re‑refined base oils

10

3

Diesel fuels that comply with the Fuel Quality Standards (Automotive Diesel) Determination 2019

7

4

Diesel extenders:

(a) that are filtered, de‑watered and de‑mineralised; and

(b) that, if combined with diesel fuels, would produce a combined fuel that complies with the Fuel Quality Standards (Automotive Diesel) Determination 2019

5

5

High grade industrial burning oils (filtered, de‑watered and de‑mineralised)

5

6

Low grade industrial burning oils (filtered and de‑watered)

3

7

Industrial process oils and lubricants, including hydraulic and transformer oils (re‑processed or filtered, but not re‑refined)

0

8

Gazetted oil consumed in Australia for a gazetted use

The amount worked out under subsection (2)

\n```\n\n> Note: Examples for item 2 include chain bar oil and oil incorporated into a manufactured product.\n\n (2) For the purposes of column 2 of item 8 of the table in subsection (1), the amount is:\n (a) in relation to the consumption of gazetted oil for a gazetted use during the period beginning on 30 March 2022 and ending at the end of 28 September 2022—4.3 cents per litre; or\n (aa) in relation to the consumption of gazetted oil for a gazetted use on or after 1 July 2023—14.2 cents per litre; or\n (b) in relation to the consumption of gazetted oil for a gazetted use during any other period—8.5 cents per litre.\n (3) Despite subsection (1), no product stewardship (oil) benefit is payable in respect of oil (including gazetted oil obtained through recycling) that is to undergo further recycling before it is sold to the end user or consumed.\n (4) For the purposes of item 1 of the table in subsection (1):\n (a) an independent laboratory must test the oil against the criteria mentioned in Schedule 1; and\n (b) the test results must be given to the Commissioner:\n (i) with the first claim for benefit; and\n (ii) at intervals of not more than 6 months while the benefit is being claimed.\n (5) For the purposes of paragraph (4)(a), a sample may be tested only if an employee of an independent laboratory certifies that:\n (a) the sample is representative of a production run of the product; and\n (b) the employee is satisfied that the sample was not tampered with after it was collected and before it was dispatched to the laboratory.\n (6) For the purposes of paragraph (4)(a), the independent laboratory undertaking the test must certify that the sample tested was not tampered with after receipt by the laboratory and before testing.","sortOrder":6},{"sectionNumber":"7","sectionType":"section","heading":"Additional amount of benefit—re‑refined base oil where entitlement to benefit arose 1 July 2020 to 31 December 2020","content":"#### 7 Additional amount of benefit—re‑refined base oil where entitlement to benefit arose 1 July 2020 to 31 December 2020\n\n Application of section\n (1) This section applies if:\n (a) product stewardship (oil) benefit is payable in respect of recycled oil for a claim period; and\n (b) apart from this section, the amount of the benefit is:\n (i) for claims for payment of the benefit made before 1 October 2022—the amount mentioned in item 1 of the table in subregulation 4(1) of the Product Stewardship (Oil) Regulations 2000 (as in force immediately before that date); or\n (ii) for claims for payment of the benefit made on or after 1 October 2022—the amount mentioned in item 1 of the table in subsection 6(1) of this instrument; and\n (c) the entitlement to the benefit arose:\n (i) on or after 1 July 2020; and\n (ii) on or before 31 December 2020.\n (2) For the purposes of subsection (1), it does not matter whether any amount of the benefit was paid before 1 October 2022.\n Additional amount\n (3) If this section applies, the benefit includes an amount of 12 cents per litre in addition to the amount mentioned in subparagraph (1)(b)(i) or (ii) that applies in relation to the claim.","sortOrder":7},{"sectionNumber":"Part 3","sectionType":"part","heading":"Application, saving and transitional provisions","content":"## Part 3—Application, saving and transitional provisions","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"Application of this instrument","content":"#### 8 Application of this instrument\n\n This instrument applies to a claim for product stewardship (oil) benefit that is made:\n (a) on or after the commencement of this instrument; or\n (b) before that commencement, if the amount of the benefit for the claim was not assessed under section 17 of the Product Grants and Benefits Administration Act 2000 before that commencement.","sortOrder":9},{"sectionNumber":"9","sectionType":"section","heading":"Process approved by Minister","content":"#### 9 Process approved by Minister\n\n A process approved by the Minister for the purposes of subregulation 3(2) of the Product Stewardship (Oil) Regulations 2000 that was in force immediately before the commencement of this instrument is taken, after that commencement, to be a process approved by the Minister for the purposes of paragraph 5(2)(b) of this instrument.","sortOrder":10},{"sectionNumber":"2","sectionType":"section","heading":"Poly‑aromatic hydrocarbons","content":"#### 2 Poly‑aromatic hydrocarbons\n\n (1) The oil must contain less than the following for each kilogram of oil:\n (a) 10 mg of benzo(a)pyrene;\n (b) 10 mg of dibenz(ah)anthracene;\n (c) 100 mg of benz(a)anthracene;\n (d) 100 mg of benzo(b)fluoranthene;\n (e) 100 mg of benzo(k)fluoranthene;\n (f) 100 mg of chrysene;\n (g) 100 mg of indeno(123‑cd)pyrene.\n (2) The total amount of poly‑aromatic hydrocarbons mentioned in subclause (1) that the oil contains must be less than 400 mg for each kilogram of oil.\n (3) The total amount of all poly‑aromatic hydrocarbons that the oil contains (including poly‑aromatic hydrocarbons mentioned in subclause (1)) must be less than 1,000 mg for each kilogram of oil.","sortOrder":12}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with the original intent of the Product Stewardship (Oil) Act 2000. It maintains the core framework of incentivising oil recycling through tiered payments based on environmental outcomes and processing quality. The 2022 version updates payment rates, clarifies testing requirements, and adds transitional provisions for claims spanning the regulatory change, but does not expand beyond the original scope of administering oil recycling benefits."},"complexity_factors":["Multiple cross-references to the parent Act (Product Stewardship (Oil) Act 2000) and other legislation (Fuel Quality Standards Determination, Product Grants and Benefits Administration Act)","Complex conditional payment structure with 8 categories in a table, plus nested conditions for 'gazetted oil' vs 'recycled oil'","Time-bound payment rates with three different periods (March-September 2022, post-July 2023, and 'any other period')","Technical chemical testing requirements in Schedule 1 with specific measurement thresholds (e.g., 'less than 10 mg of benzo(a)pyrene for each kilogram of oil')","Defined terms requiring external knowledge ('gazetted oil', 'gazetted use', 'base oil', 'independent laboratory')","Transitional provisions dealing with claims made under previous regulations and retrospective adjustments for 2020 claims","Process approval mechanism requiring Ministerial discretion for alternative re-refining methods"],"plain_english_summary":"This instrument implements payments under the Product Stewardship (Oil) Act 2000 that reward businesses for recycling used oil, with tiered rates (up to 50¢/L) tied to the quality and end‑use of the recycled product. It defines “re‑refined” processes, sets strict chemical and safety standards for high‑quality base oils, and requires independent lab verification for the top payment. It affects oil recyclers, collectors and the ATO, creating financial incentives to properly recycle and reduce environmental harm."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"This instrument updates and specifies payment rates, technical quality criteria (Schedule 1), testing and certification procedures, and transitional arrangements for claims. Those are refinements and operational details within the original statutory purpose (administering product stewardship benefits for oil under the Product Stewardship (Oil) Act 2000). It does not extend the statutory objects or create new regulatory fields beyond the Act’s existing product‑stewardship scope; rather it narrows and clarifies eligibility, payments and technical thresholds. Therefore the scope of the legislative purpose has not materially grown beyond the original intent."},"complexity_factors":["Table of 8 items (regulation 6(1)) with category‑based rates requiring mapping of product types to items","Time‑dependent rates for gazetted oils (regulation 6(2)) introducing date cut‑offs and multiple rate windows","Multiple cross‑references to the Act and earlier regulations (regulation 3, 4, 9) and to other instruments (Fuel Quality Standards determination)","Definitions section with both instrument‑specific definitions and reliance on defined terms in the Act (regulation 5)","A compound definition of “re‑refined” that lists alternative process routes and allows Ministerial approval of other processes (regulation 5(2))","Testing and certification chain‑of‑custody rules with repeated periodic reporting obligations (regulation 6(4)–(6))","Schedule 1 contains numerous technical thresholds across different chemical groups (mutagenicity, multiple PAH compounds with per‑compound and total caps, PCBs, dioxins/furans, total acid number, heavy metals, appearance)","Transitional/top‑up provision tied to entitlements arising in a past window (regulation 7), requiring historical entitlement tracking","An exclusion clause disallowing payment where further recycling will occur before sale (regulation 6(3)), which affects practical eligibility assessments","Ministerial discretion to approve processes and the need to assess consistency with objects of the Act (regulation 5(2)(b))"],"plain_english_summary":"**What this instrument does, in plain English**\n\n- This regulation sits under the Product Stewardship (Oil) Act 2000 and sets the mechanical rules for paying the product stewardship (oil) benefit — a per‑litre payment to people who recover and supply recycled or re‑refined oils (see regulation 3 and regulation 6).\n\n- It specifies the exact amounts (in cents per litre) payable for different categories of recycled or gazetted oils (regulation 6 and the table in regulation 6(1)). The highest specified amount is for re‑refined base oil that meets the technical criteria in Schedule 1 (50 cents/litre; item 1). Other categories carry lower amounts or zero, and gazetted oils consumed in Australia use a separate calculation with time‑dependent rates (regulation 6(2) and item 8).\n\n- It defines what counts as “re‑refined” for these purposes — either a specific sequence of industrial processes (thin film evaporation or vacuum distillation followed by solvent extraction or hydrofinishing), or another process the Minister approves in writing if it is consistent with the Act’s objects and similar in purpose and effect (regulation 5(2)).\n\n- It requires laboratory testing and record‑keeping when claiming the higher rate for re‑refined base oil: an independent laboratory must test the oil against the Schedule 1 criteria and provide results with the first claim and at least every six months while claiming (regulation 6(4)–(6)). The regulation sets chain‑of‑custody certification requirements for samples and a laboratory certification that samples were not tampered with (regulation 6(5)–(6)).\n\n- Schedule 1 sets the technical product quality thresholds that re‑refined base oil must meet to qualify for the top rate. Those include limits for mutagenicity, poly‑aromatic hydrocarbons (several named compounds plus total caps), polychlorinated biphenyls (PCBs), dioxins/furans (as toxic equivalents), total acid number, certain heavy metals (arsenic, cadmium, chromium, lead), and a requirement that the oil is clear and bright (Schedule 1 clauses 1–7).\n\n- The instrument includes transitional and saving provisions: it applies to claims made on or after commencement and certain earlier claims that had not been assessed (regulation 8); it preserves certain Minister‑approved processes carried over from the old regulations (regulation 9); and it provides an extra 12 cents/litre for re‑refined base oil where entitlement originally arose between 1 July 2020 and 31 December 2020 (regulation 7).\n\n- The regulation also prevents payment where the oil (including gazetted oil obtained by recycling) will be recycled again before sale to the end user or consumption (regulation 6(3)).\n\n**Who is affected**\n\n- Primary recipients: businesses or individuals who collect, treat and supply used oil as recycled, re‑refined or otherwise processed oil and lodge claims for product stewardship (oil) benefit (regulation 6).\n\n- Secondary effects: independent testing laboratories (they must provide chain‑of‑custody and testing), the Minister (who has limited approval discretion over alternative re‑refining processes), and the administering Agency/Commissioner (who receives claims and test results).\n\n- Fiscal impact: the Australian Government (or the administering fund) pays the benefits; taxpayers ultimately bear the cost of those payments.\n\n**Why it matters (claimed purpose and practical effects)**\n\n- The instrument’s stated technical purpose is to encourage higher‑quality recycling and re‑refining of used oil by linking monetary benefit to product quality and end use (see the table in regulation 6(1) and Schedule 1). That is the instrument’s operational mechanism: higher payments for oils that meet strict re‑refined criteria (item 1), lower or zero payments for lower‑grade or merely reprocessed oils (items 2–7), and tailored rates for gazetted oil uses (item 8 and regulation 6(2)).\n\n- The practical incentives are straightforward: recycling businesses have a financial reason to invest in processes and quality control to meet Schedule 1 thresholds and therefore qualify for the higher rate. Conversely, low‑grade processing that does not meet the Schedule 1 criteria will attract a lower (or no) payment (items 2–7).\n\n**Costs, incentives, trade‑offs and implementation considerations**\n\n- Who pays and who benefits: benefit payments are made to recyclers/processors who meet the eligibility and testing requirements (regulation 6). The government budget funds these payments. The benefits are concentrated on operators who can economically achieve the Schedule 1 quality thresholds (item 1), so gains are likely concentrated rather than widely dispersed.\n\n- Compliance and administrative cost: claimants who seek the higher rate must arrange independent laboratory testing, sample certification and periodic retesting every six months while claiming (regulation 6(4)–(6)). That creates ongoing operational costs and a need for secure chain‑of‑custody procedures.\n\n- Behavioural incentives and substitution effects: differential rates create an incentive to upgrade processing to meet re‑refining standards or to redirect used oil into product streams that attract payment. The exclusion of oil destined for further recycling from payment (regulation 6(3)) may alter processing or sales timing to ensure eligibility.\n\n- Timing and claim strategy: different time‑dependent rates for gazetted oil (regulation 6(2)) could encourage claim timing strategies or administrative complexity for determining which rate applies for a given consumption period.\n\n- Ministerial discretion and regulatory risk: the Minister can approve alternative re‑refining processes in writing if they are consistent with the Act and similar in purpose and effect (regulation 5(2)(b)). That creates a pathway for novel technologies to qualify but also concentrates discretionary decision‑making in the Minister.\n\n- Verification risk and fraud potential: reliance on laboratory testing and certifications reduces but does not eliminate risk. Proper enforcement and audit capability are necessary to ensure sample integrity and truthful claims (regulation 6(5)–(6)).\n\n- Opportunity cost: funds used for the benefit are not available for other programs. The instrument does not itself set the overall budget cap; it specifies per‑litre rates and eligibility rules (regulation 6). \n\n**Concrete implementation tasks for affected parties**\n\n- For recyclers to claim the highest rate: (a) produce oil meeting Schedule 1 criteria; (b) arrange independent laboratory sampling and certification that the sample is representative and untampered; (c) submit tests to the Commissioner with the first claim and at least every six months (regulation 6(4)–(6); Schedule 1).\n\n- For any operator with a novel re‑refining process: seek written Ministerial approval if the process is not one of the explicitly listed processes (regulation 5(2)(b)).\n\n**Key statutory references in the instrument**\n- Authority: regulation 3 (made under Product Stewardship (Oil) Act 2000).\n- Benefit amounts and categories: regulation 6 (including the table in 6(1) and the time rules in 6(2)).\n- Exclusion (no payment if further recycling will occur before sale): regulation 6(3).\n- Re‑refining definition and Ministerial approval: regulation 5(2).\n- Lab testing, sampling and certification rules: regulation 6(4)–(6).\n- Technical quality thresholds for top rate: Schedule 1 (clauses 1–7).\n- Transitional/top‑up payment for certain 2020 entitlements: regulation 7.\n- Application and saving: regulations 8–9.\n\n(End of summary.)"}},"importantCases":[],"_links":{"self":"/api/acts/product-stewardship-oil-regulations-2022","history":"/api/acts/product-stewardship-oil-regulations-2022/history","analysis":"/api/acts/product-stewardship-oil-regulations-2022/analysis","conflicts":"/api/acts/product-stewardship-oil-regulations-2022/conflicts","importantCases":"/api/acts/product-stewardship-oil-regulations-2022/important-cases","documents":"/api/acts/product-stewardship-oil-regulations-2022/documents"}}