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Home Charitable recycling

Charity shops fight ‘unfair’ tax

by Shannon Paten
May 3, 2023
in Charitable recycling, Circular Economy, Environment, Victoria
Reading Time: 3 mins read
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Charitable Recycling Australia

Charitable Recycling Australia

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Omer Soker, Chief Executive Officer of Charitable Recycling Australia, has labelled the withdrawal of Victorian waste levy protections for charity shops as unfair.

In an open letter to Ingrid Stitt, Minister for Environment, Victoria, Soker makes a plea for the minister to intervene in the Department of Energy, Environment and Climate Action (DEECA) move, stating it will lead to increased landfill in Victoria.

Soker said that in May 2021, Stitt’s predecessor, Lily D’Ambrosio, intervened to stop DEECA, formerly Department of Environment, Land, Water and Planning (DELWP), from withdrawing the Victorian waste levy protections for charity shops – and “averted a crisis”.

“DEECA has re-loaded and is again planning to penalise charity shops with $1.5 million in unfair annual extra cost burdens from 1 July 2023 – so we need you to intervene urgently to stop this,” Soker said.

“Why should you intervene? Both on principle and in practice, to safeguard the environment which your Ministry is responsible for. If you don’t stop DEECA, landfill in Victoria will increase.”

Soker said that charities don’t own, create or want the waste, it is illegally dumped on them by lawbreakers. He said other state government jurisdictions in Australia understand this and protect charity shops from their waste levies.

“It is only Victoria that will be isolated in its regressive stance if you don’t act,” he said.

“In practice, the waste levy has a perverse effect on charity shops. If you penalise charity shops with an unfair tax on 1 July 2023, they will have to find the savings somewhere – which means a reduction in capacity.”

In 2022, according to Stoker, charity shops diverted 242,000 tonnes of waste from landfill, saved 214,000 tonnes of CO2 emissions and 21,000 mega litres of water a year to help the environment. A tax would stop this happening again.

“If charity shops are forced to cut costs from their mission goals to pay your tax, it means the most vulnerable people in Victoria will be hurt directly,” Stoker said.

“Charity shops provide $232 million in avoided costs for your government, in food and shelter for Victorians in need, mental health services, crisis support and a wide range of illness and disability support, right down to the wellbeing of our pets. Without charity shops, your government would need to pay for these services.”

Stoker said that transitioning to a Circular Economy is impossible if  reuse is regressed.

“Please intervene to stop charity shops being penalised on 1 July 2023, and maintain the 100 per cent protections for charity shops from the waste levy,” Stoker said.

“The environment will thank you. Society will thank you. And the economy will thank you.”

For more information, visit: www.charitablerecycling.org.au

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