When levies and export charges apply
Levy
Levy applies to tea tree oil distilled in Australia and sold by the person who owns the tea tree oil immediately after it is distilled.
Export charge
Export charge applies to tea tree oil distilled in and exported from Australia.
Exemptions
Levy
Levy does not apply to tea tree oil sold after export.
Levy does not apply to tea tree oil if the total amount of levy payable on tea tree oil sold by retail sale by the person in that financial year is less than $25 (GST exclusive).
Export charge
Export charge does not apply to tea tree oil if the levy has already been applied.
Records must be maintained to confirm that an exemption applies.
Who collects and pays
The levy or export charge may be paid via a third party (collection agent) or directly to us. This depends on whether there is a collection agent involved in the sale or export of the tea tree oil.
Collected and paid via a third party (collection agent)
The levy or export charge is collected by the person associated with the sale (other than by retail sale) or export of the tea tree oil. We call this person the collection agent.
The collection agent can be the:
- selling agent, buying agent (if no selling agent is involved), or business purchaser (if no selling or buying agent is involved), or
- exporting agent.
This person deducts or recovers the levy or export charge from the levy or export charge payer and then pays that amount to us as part of a return.
Paid directly to us (levy or export charge payer)
The levy is paid by the person who owns the tea tree oil immediately after it is distilled. We call this person the levy payer.
The export charge is paid by the person who exports the tea tree oil from Australia. We call this person the export charge payer.
The levy or export charge payer pays directly to us as part of a return if they:
- sold tea tree oil by retail sale, or
- exported the tea tree oil themselves.
Rates
| Product | Levy/export charge rate |
|---|---|
| Tea tree oil | 25 cents per kilogram |
GST is not applied to Australian Government levies and export charges.
See full details of the levy and export charge rates.
Return and payment dates
Half-yearly
Half-yearly returns and payments are for tea tree oil sold (other than by retail sale) or exported.
Return and payment must be received by:
- 31 January (1 July to 31 December period)
- 31 July (1 January to 30 June period)
Example: For tea tree oil sold (other than by retail sale) or exported in the July to December period, the return and payment must be received by 31 January in the same financial year.
Annual
Annual returns and payments are only for tea tree oil sold by retail sale in a financial year.
Return and payment must be received by:
- 31 August each year (for the previous financial year)
For tea tree oil sold by retail sale in a financial year, the return and payment must be received by 31 August in the next financial year.
Late payment penalties apply
Penalties are calculated daily at a compounding rate of 2% of the unpaid amount each month, including any outstanding debt, until the amount is paid in full.
How to lodge a return
You can lodge your return via Levies Online.
After you log in:
- select the return type and period
- complete the information
- lodge your return
- make payment to us by electronic funds transfer (EFT) or cheque.
First time lodging with us
You will need to register with us before you can lodge your first return.
You will receive a unique LRS number that you need to include in your return.
If you can’t use Levies Online
To lodge a manual return:
- download and complete the tea tree oil return form
- email or post your return
- make payment to us by electronic funds transfer (EFT) or cheque.
Return information
Tea tree oil is part of the:
- Tea tree oil half yearly return
- Tea tree oil financial year return
To lodge a return, you will need to know the:
- quantity (kilograms) of tea tree oil sold or exported
- amount of levy and export charge payable
- levy and charge payers information and business details (name, address, phone or email, ABN or ACN).
Record keeping
You must keep records relating to each return for five (5) years. The records must:
- be set out for each financial year
- include details of each transaction.
Heavy penalties could apply if you fail to meet the record keeping requirements.
Who uses this levy and export charge
Recipient body for the tea tree oil levy and export charge is:
Definitions
Business purchaser
A person who buys products, goods or services from levy payers while carrying on a business (including as a processor or feedlot operator).
Retail sale
A sale to a person other than to a business purchaser (whether bought directly or through a selling agent or buying agent or both).
Tea tree oil
Oil distilled from Melaleuca alternifolia in accordance with the standard produced by the International Organization for Standardization and known as ISO 4730:2017 Essential oil of Melaleuca, terpinen 4 ol type (Tea Tree oil), as in force from time to time.
Levies and related legislation
This information is a guide only. You must be aware of your obligations under relevant levy and export charge laws.
This includes:
- Primary Industries (Excise) Levies Act 2024
- Primary Industries (Customs) Charges Act 2024
- Primary Industries Levies and Charges Collection Act 2024
- Regulatory Powers (Standard Provisions) Act 2014
See more on levy and export charge laws.
Stay updated
Check latest updates in our levy notices.
Contact us
For more on levies and export charges, levies accounts or how to lodge your return, contact the Levies team.