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In NSW, all Sita-run Waste Management Centres (http://www.wsn.com.au/) take up to 10L of engine & transmission oil for free. I just keep going to the Seven Hills one every few days on the way to work...

There will be a collection day at:
Sat 19 September
9 am - 3:30pm
Hosted by Holroyd City Council
Holroyd City Council Works Depot,
Enter via Foray Street, Guildford West

Otherwise you can...

I bring it to my nearby waste management centre. They let you dump 10L for free. They also take old car batteries, one unit each time you go there.

There are other better solutions that don't contaminate ground water.

Does your CLK55 AMG need some massage oil? :p