Tuesday 7 May 2024

WASTE AND RESOURCE RECOVERY INDUSTRY WELCOMES VICTORIAN BUDGET WASTE LEVY HARMONISATION MEASURE

The Waste Management and Resource Recovery Association of Australia (WMRR) today welcomes the $40 increase to Victoria’s waste levy from 1 July 2025 - bringing it into line with NSW – saying the measure will encourage increased resource recovery.

“This levy harmonisation is a positive step forward for the waste and resource recovery (WARR) industry by putting a clear price on valuable material that should be recovered where it is generated - not moved around states - and definitely not moved around to simply be landfilled in Victoria to avoid the SA and NSW levies,” WMRR Chief Executive Office Gayle Sloan said.

“This increase was needed not just to harmonise with the adjacent states, but also as noted by the Premier, the cost of construction alone have increased in Victoria by 22% in the last two (2) years. These are real increases that impact our sector too, making it far more challenging to develop economically viable recovery facilities in Victoria with the current economic settings,” Ms Sloan said.

“This waste levy move sends a clear signal to our industry that Victoria is open for WARR investment. The current levy rate is completely out of step with its neighbouring states and once it aligns next year, it must continue to do so.

“The best levy for our industry is a certain one.  We would like to see all major states co-operate going forward to harmonise levy rates along the east coast in order to increase material diverted away from landfill, and to encourage the management of materials close to where they are generated. 

“We also need to remember the goal is to resource recover. We need to design products that can be repaired, reused and, ultimately at the end of life, recycled. By doing this we can create three (3) times more jobs, reduce the draw down on natural material and reduce carbon emissions.  

“These policies are no longer a nice to have, but a must do. We need to decouple Australia's economic growth from virgin materials to reduce carbon and support our natural environment. 

“We hope the government never receives any proceeds from the waste levy. You only pay if you landfill. It’s a signal to the market to design well and to generate materials and products with materials our industry can recover and keep circulating. 

“Industry notes the additional funding for Environment Protection Authority Victoria. A well-functioning and resourced EPA is crucial for the success of our industry. We look forward to working with government in 2024 to ensure the correct regulatory and approvals settings are in place in order that we can invest in 2025. 

“We also congratulate the Victorian Government on the rebate for charities. They should not be used as a disposal service for clothing and we would encourage continued focus on higher order consumption and behaviour,” Ms Sloan said.