✦ Plain-English Summary

Excise Tariff Amendment 2020

What it does

This bill updates the taxes (called excise) on lubricating oils, hydraulic fluids, and greases. It sets a flat tax rate of 8.5 cents per litre for most oil products and 8.5 cents per kilogram for greases, including recycled versions of these products.

Why it matters

The excise on these products affects the cost of industrial supplies, machinery maintenance, and manufacturing — which ultimately flows through to prices for everyday goods and services. The change also encourages recycling of used oils and greases by taxing them the same as new products, rather than giving them a different rate.

Key details

• The rate: 8.5¢ per litre for oils and fluids; 8.5¢ per kilogram for greases (applies to both new and recycled products)
• When it starts: The day after the bill received Royal Assent, and it applies to all goods from the day the bill was first introduced to parliament
• What's excluded: Diesel fuel, fuel blends, and anything specifically made for use as fuel aren't taxed under these rules

Official Description

Introduced with the Product Stewardship (Oil) Amendment Bill 2020 in response to the Federal Court's decision in Caltex Australia Petroleum Pty Ltd v Commissioner of Taxation [2019] FCA 1849, the bill amends the Excise Tariff Act 1921 to narrow the scope of petroleum-based oils and synthetic equivalents for which excise duties are imposed for the purposes of the Product Stewardship for Oil Scheme to exclude diesel and other fuels.

Committee Referrals

Senate Environment and Communications Legislation Committee

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

No votes yet.

No votes were recorded for this bill.