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Marina at Cervantes, Western AustraliaRe-refinery at Wagga Wagga, New South WalesCollection facility in Mildura, Victoria

Used Oil Recycling

Product Stewardship Arrangements for Waste Oil - Report for the Period 1 July 2001 to 30 June 2002

Environment Australia, 2002
ISBN 0 64254 902 8
ISSN 1446 6422


4. Transitional Assistance

As part of the original Measures for a Better Environment policy statement, the Government provided $60 million in transitional assistance to support the implementation of the product stewardship arrangements. This funding was to be provided in four equal tranches of $15m over the financial years 2000-01 to 2003-04, but has since been re-phased as follows5:

Table 4.1 Transitional Assistance Funding Allocations ($m)
  2000-01 2001-02 2002-03 2003-04 2004-05
Initial allocation 15.0 15.0 15.0 15.0 -
1st Re-phasing (April 2001) -12.5 - - - 12.5
2nd Re-phasing (Aug 2001) -1.17       1.17
3rd Re-phasing (April 2002)   -3.9 3.9    
Revised allocation 1.13 11.1 18.9 15.0 13.67

Transitional Assistance is intended to provide funding for strategic projects, which address more fundamental barriers to oil recycling, such as lack of adequate infrastructure or technology. Additionally, the funds are used to cover the operating costs of the entire PSO program - including the relevant running costs of Environment Australia, the Australian Taxation Office and the Oil Stewardship Advisory Council - and to underwrite the stewardship benefits in the event of revenue shortfalls.

Priority areas identified for project funding include:

The transitional assistance funds may be provided through specific grants or projects, consultancies and/or strategic partnerships for the provision of goods and services.

Projects and Grants 2001-02

Local Government Waste Oil Collection Infrastructure

Recognising that the lack of adequate waste oil collection facilities, particularly in rural Australia, was a major barrier to the collection and recycling of greater amounts of waste oil, the Minister approved the establishment of the Local Government Waste Oil Collection Infrastructure Small Grants Program.

Under this program, Environment Australia received over 200 applications from local governments seeking funding to build or upgrade waste oil collection facilities. These applications sought approximately $4.5m in total and Environment Australia anticipates funding decisions will be made early in 2002-03, which will enable successful Councils to complete their waste oil facilities within the 2002-03 financial year.

First Annual Call for Expressions of Interest

Projects funded as a result of the first annual call for expressions of interest in February 2001 progressed well. Highlights included:

Second Annual Call for Expressions of Interest

The second annual call for expressions of interest for Transitional Assistance funding was advertised in February 2002 and closed at the end of April 2002. This process generated 21 applications seeking total funding in the order of $8m.

Consistent with the first round call for expressions of interest, these applications covered a wide range of proposals including recycling technology, education and awareness, research and development and product promotion.

Environment Australia anticipates that funding decisions will be made in early 2002-03.

Operating Expenses

Environment Australia operating costs $723,672

This covers all costs associated with running the PSO, including staff salaries and allowances, consultancies, advertising (eg for tenders) and other related expenses.

ATO operating costs $465,300

This includes the costs of processing registrations and claims for benefits, compliance monitoring, client liaison etc.

OSAC operating costs $62,906

This includes all costs related to the activities of the 16 member advisory council, including venue hire, sitting fees, air fares and other travel costs and allowances. See Chapter 3 for information on OSAC and its activities during 2001-02.

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