Tea tree oil levy and charge

The tea tree oil levy and charge rate comprises Emergency Plant Pest Response (EPPR) and research and development (R&D), as shown in the table below:

The tea tree oil levy and charge rate is calculated per kilogram. GST is not applied to Australian Government levies and charges.

Half-yearly return

A producer of tea tree oil who:

• produces and sells, by retail sale, tea tree oil in Australia; and
• exports tea tree oil, with no intermediary.

if the total amount of levy the producer would be liable to pay in relation to tea tree oil sold by retail sale is equal to or greater than $25 in the financial year.

OR

A producer who only exports tea tree oil in a half-year (that is, the person who owns the tea tree oil immediately before export from Australia), with no intermediary.

OR

An intermediary in relation to a producer of tea tree oil, including a first purchaser, buying agent, selling agent or exporting agent.

Annual return

A producer who sells tea tree oil by retail sale and does not export tea tree oil in a half year, must lodge an annual return (unless the total amount of levy the producer would be liable to pay in relation to tea tree oil sold by retail sale in the financial year is less than $25).

If you produce tea tree oil and sell your tea tree oil through an intermediary, including a first purchaser, buying agent, selling agent or exporting agent, the amount of levy they pay to the department on your behalf can be recovered from you by offset or otherwise.

If you are an intermediary, including a first purchaser, buying agent, selling agent or exporting agent, you must lodge a return and make a payment to the department. You can recover from the producer the amount of levy paid to the department, by offset or otherwise.

If you export tea tree oil—that is, you are the person who owns the tea tree oil at the time of export, you must lodge a return and make a payment to the department.

A producer of tea tree oil is exempt from paying levy if they sold tea tree oil by retail sale in a financial year and total amount of levy they would be liable to pay is less than $25.

The charge on tea tree oil is not payable if the levy has already been applied to the tea tree oil prior to export.

You must register with the department to receive a unique LRS number before you can lodge your first return.

To lodge your return online, access Levies Online. Alternatively, you can complete a manual tea tree oil return form.

IMPORTANT: If you pay your levy or charge late you will incur a penalty that is calculated daily at a compounding rate of 2 per cent of the unpaid amount each month, including any penalties you have already accrued until you have paid the outstanding amount in full.

The tea tree oil levy and charge is based on a financial year.

Half-year returns and payments

Half-year returns and payments must be lodged with the department within 28 days after the end of the levy period in which the tea tree oil was oil was first sold or exported from Australia.

Example: the half-year returns and payments are due on or before:

• 28 July for tea tree oil transactions between 1 January and 30 June (June period)
• 28 January for tea tree oil transactions between 1 July and 31 December (December period)

Annual return and payment

Annual return and payment for a financial year must be lodged on or before 28 August in the following financial year if in the financial year the producer only sells their tea tree oil by retail sale.

Example: For the 2022-23 annual financial year, the return and payment must be lodged on or before 28 August 2023.

As a producer of tea tree oil, your return for a half-year or levy year must set out for that half-year or levy year:

1. Your personal details, including:
   1. Full name
   2. Business or residential address, not the address of a post office box or post office bag
   3. Post office box or post office bag
   4. Your email and/or phone number, and
   5. Australian Business Number (ABN), or if you are a company the Australian Company Number (ACN)
2. Period to which the return relates
3. Quantity of tea tree oil, in kilograms, sold by retail sale
4. Quantity of tea tree oil, in kilograms, exported
5. Amount of levy or charge payable for those quantities, and
6. Amount of levy or charge paid for those quantities.

As an intermediary of tea tree oil, including as a first purchaser, buying agent, selling agent or exporting agent, your return for a half-year must set out for that half-year:

1. Your personal details, including:
   1. Full name
   2. Business or residential address, not the address of a post office box or post office bag
   3. Post office box or post office bag, and
   4. ABN, or if you are a company the ACN
2. Period to which the return relates
3. Quantity of tea tree oil, in kilograms, purchased, sold or exported
4. Amount of levy and export charge payable for each of those quantities, and
5. Amount of levy and export charge paid for that quantity.

For transactions from 1 January 2023, your return must also include, for each producer:

1. Person’s full name, address, contact details (email and/or phone number), and ABN, if any, and if the person is a company and does not have an ABN – its ACN
2. Quantity of tea tree Oil Domestic (kilograms)
3. Quantity of tea tree oil export (kilograms)
4. Total amount of levy or charge payable/paid.

As an exporter of tea tree oil, your return for a half-year must set out for that half-year:

1. Your personal details, including:
   1. Full name
   2. Business or residential address, not the address of a post office box or post office bag
   3. Post office box or post office bag
   4. Your email and/or phone number and
   5. ABN, or if you are a company the ACN
2. Period to which the return relates
3. Quantity of tea tree oil, in kilograms, exported
4. Amount of charge payable, and
5. Amount of charge paid.

As a producer of tea tree oil, you must keep records for five (5) years showing for each half-year or levy year, the:

1. Quantity of tea tree oil, in kilograms, sold by retail sale
2. Quantity of tea tree oil, in kilograms, exported
3. Amount of levy or charge payable for those quantities, and
4. Amount of levy or charge that has been paid for those quantities.

As an intermediary of tea tree oil, including as a first purchaser, buying agent, selling agent or exporting agent, you must keep records for five (5) years showing for each half-year, the:

1. Quantity of tea tree oil, in kilograms, purchased, sold or exported
2. Amount of levy and charge payable for each of those quantities
3. Amount of levy and charge paid for those quantities, and
4. For each person to whom tea tree oil was exported or sold (except by retail sale) or from whom tea tree oil was purchased, the total quantity exported, sold or purchased and the persons:
   1. Full name
   2. Business or residential address, not the address of a post office box or post office bag, and
   3. ABN, if any, and if the person is a company and does not have an ABN, it’s ACN.

As an exporter of tea tree oil, you must keep records for five (5) years showing for each half-year, the:

1. Quantity of tea tree oil exported
2. Amount of charge payable for that quantity, and
3. Amount of charge that has been paid for that quantity.

The tea tree oil levy and charge is provided for under, the:

Primary Industries (Excise) Levies Act 1999

Primary Industries (Customs) Charges Act 1999, and

Primary Industries Levies and Charges Collection Act 1991