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Landfill levy

Industry set to see immediate Recycling Victoria impact

Victoria’s landfill levy increase is set to have an immediate impact on recovery rates, according to Bingo Industries Managing Director Daniel Tartak.

The increase – $65.90 to 125.90 over three years – is one of many changes outlined in Victoria’s new circular economy policy Recycling Victoria, released earlier this week. Additional changes include the introduction of a container deposit scheme and a $100 million infrastructure investment.

Mr Tarak welcomed the levy increase, applauding the state government’s bold efforts to develop Victoria’s recycling economy.

“It will further encourage recycling, optimise the diversion of waste from landfill and promote the development of a truly circular economy; promote investment in recycling technology, and move Victoria towards international best practice diversion rates,” Mr Tarak said.

“The staged increase in the levy also works well for our customers, who can now plan ahead for this and other structural changes, such as the new EPA Act and increased safety and compliance regulations which will also impact the sector.”

According to Mr Tarak, the polices, commitments and actions outlined in the plan align with BINGO’s Victorian strategy.

“We’ve invested more than $100 million over the past three years in the acquisition and development of recycling assets in anticipation of many of the initiatives outlined in this plan,” he said.

“We recently received approval to operate our advanced recycling facility in West Melbourne for 24 hours per day, seven day per week, so we’ll be ready to accommodate the increased volumes we expect to receive from 1 July onwards. ”

Mr Tartak also highlighted the plan’s support for the development of waste-to-energy facilities, increased resources to monitor illegal behaviour and commitment to increasing the use of recycled materials in construction projects as positive.

In reference to Recycling Victoria’s container deposit scheme announcement, Cleanaway CEO Vik Bansal said the move was a step in the right direction towards achieving a circular economy.

“At Cleanaway we have seen firsthand the environmental, economic and social benefits of a container return scheme,” he said.

“A system that encourages consumers to separate recycling at the point of disposal improves the quality of the recyclable material, which makes it an even more valuable commodity for reuse.”

Mr Bansal also applauded the Victorian Government’s efforts to improve the quality of recyclable material across the state.

“The introduction of a fourth recycling bin for glass is expected to reduce contamination and create a cleaner commodity stream,” Mr Bansal said.

“This, in turn, means more materials will be recycled and opens up opportunities for a circular economy for glass.”

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Landfill levy set to double under Recycling Victoria strategy

Victoria’s landfill levy is set to almost double, with the release of the state’s long-awaited circular economy policy Recycling Victoria. 

According to Environment Minister Lily D’Ambrosio, the increase – $65.90 to 125.90 over three years – will help support recycling reforms and provide a stronger incentive to invest in new waste technologies.

“Victoria’s landfill levy is significantly lower than our neighbouring states, meaning Victoria is too often used as a dumping ground for waste coming from New South Wales and South Australia,” she said.

“The change reflects an agreement reached by state and territory treasurers to work towards the harmonisation of landfill levies, and will provide a strong incentive to reduce and recycle waste.”

The 10-year plan, Recycling Victoria, outlines a more than $300 million package of reforms, including a statewide four-bin kerbside system, container deposit scheme, nearly $100 million to support resource recovery infrastructure and recognising waste as an essential service.

“This is the largest package of recycling reforms and investment in Victoria’s history. It will revolutionise household recycling, drive business innovation and create jobs of the future. Most importantly, it will give Victorians a truly circular economy and recycling system they can rely on,” Ms D’Ambrosio said.

Furthermore, Recycling Victoria allocates $71.4 million to tackle waste crime, with more resources to stop illegal dumping and stockpiling and deal with high-risk sites and substances.

Ms D’Ambrosio said a dedicated Waste Crime Prevention Inspectorate will be established within the EPA, which will work closely with WorkSafe Victoria, emergency service agencies, councils and other regulators to improve information sharing and coordination.

“For too long, waste crime has undermined Victoria’s recycling sector with dangerous and illegal stockpiling. Our investment will help to clean up the industry and make it fairer for businesses that do the right thing,” she said.

Recycling Victoria also sets new goals for improved resource recovery including a landfill diversion target of 80 per cent. Additional targets include cutting total waste generation by 15 per cent per capita by 2030 and ensuring every Victorian household has access to FOGO services or local composing by 2025.

“These targets will create investment certainty for businesses, while promoting jobs and growth in the industry,” Ms D’Ambrosio said.

“The government will also provide $14.6 million to support local projects that boost recycling, reduce littering and take advantage of economic opportunities to reduce waste, particularly in regional communities.”

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Looking into a later levy

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Landfill levy waived For bushfire victims

The Victorian Government has waived the landfill levy to help Victorians in the south west recover from bushfires.

Environment Minister Lily D’Ambrosio announced that the Environment Protection Authority Victoria (Victoria EPA) will work with local councils and landfill operators in the Colac-Otway, Corangamite, Moyne and Southern Grampians council areas to apply the exemption.

The waiver applies to the levy component of the gate price.

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The Victorian Government has also announced assistance for the local government areas of Colac-Otway, Corangamite, Moyne and Southern Grampians is being provided through the jointly funded Commonwealth-State Natural Disaster Relief and Recovery Arrangements (NDRRA).

Anyone who has been affected by the bushfires and suffering personal hardship and distress should call the VicEmergency Hotline on 1800 226 226 to find out about the assistance available.

Information on disaster assistance can be found on the Australian Government’s Disaster Assist website at disasterassist.gov.au and the VicEmergency website at emergency.vic.gov.au/relief

“We’re doing what we can to help those affected by these devastating bushfires,” Ms D’Ambrosio said.

“We’re helping farmers manage waste from dead livestock and damaged homes, sheds and fencing – so they can focus on getting back on their feet.”

Queensland Government opens interstate waste submissions

An independent investigation into the cross-border transport of waste to Queensland landfills is open for public submissions.

Retired Supreme Court Judge, The Honourable Peter Lyons QC will lead the investigation following a roundtable last month chaired by the Premier and Environment Minister Steven Miles.

Mr Miles said the three-month investigation would help ensure Queenslanders can have confidence in the waste transport industry.

“I encourage all transport, waste and recycling facility operators in New South Wales and South East Queensland to provide written submissions to this investigation,” Mr Miles said.

“The investigation will look at the incentives for movement of waste from other states, and how to prevent this from happening.

“It will also consider whether there’s a need for regulatory reform – and examine the role of other states and the Commonwealth.

“While this is not a regulatory or criminal investigation, it is expected that any unlawful activity it uncovers will be referred to the appropriate Queensland or interstate authorities.”

An interim report will be provided to the Government by 18 October 2017, with a final report due by 17 November 2017.

The closing date for submissions is 26 September 2017.

Details on how to make a submission are available from the investigation’s website at: www.qldwasteinvestigation.com.au

Waste and recycling council calls for levy portability

Enforcing landfill levies across state borders will prevent further unnecessary cross border transport of waste, the National Waste and Recycling Industry Council believes (NWRIC).

Following the ABC’s Four Corners report on August 7, three government reviews have been commissioned into the Australian waste and recycling industry – a review by a legal expert on behalf of the Queensland Premier, a NSW Upper House inquiry and a Commonwealth senate review. The NWRIC is offering solutions to the problems addressed by these reviews.

Interstate waste transport
A key issue raised by the reviews is the use of lower cost landfills in south east Queensland for the disposal of NSW construction and demolition waste. The reviews will also address challenges in recycling markets, a better use for landfill levy revenue and illegal practises.

While the haulage of waste materials from Sydney to Brisbane is undesirable, it is not illegal. The trade has been created by regulatory disparity between NSW and Queensland. Private industry have been lobbying for a regulatory solution on this issue for more than three years.

The regulatory disparity could be solved by either implementing a landfill levy in Queensland of $40 per tonne or more, or by reducing the landfill levy in NSW on construction and demolition material down to $100 per tonne or less. However, the NWRIC does not recommend either of these options as levies should stable and if introduced, should be carefully planned.

The NWRIC is instead proposing that state governments make landfill levies ‘portable’ across state borders. This means that levies applicable should be based on where waste is generated, not where it is landfilled. If implemented by neighbouring states, this solution will also prevent unnecessary interstate waste movements between Victoria, NSW and South Australia.

The council is currently liaising with the Heads of EPAs taskforce to promote this effective interim solution. Over the longer term, the NWRIC is calling for all states and jurisdictions to harmonise the regulations covering the Australian waste and recycling industry. Regulatory harmony will promote investor confidence and prevent future undesirable consequences.

The Queensland Government is leading an investigation into this same issue. A couple of weeks ago, they announced that retired Supreme Court judge, Peter Lyons QC, will lead the independent investigation into interstate waste transport. It comes after a roundtable jointly chaired by the Premier Annastacia Palaszczuk and Environment Minister Steven Miles.

“We are sending a clear message to interstate operators transporting waste to this state,” Ms Palaszczuk said.

“Mr Lyons is a highly regarded former Supreme Court Judge and Queen’s Counsel who will commence immediately to investigate the interstate waste transportation issue.”

The scope of his investigation will include incentives for movement of waste from other states and how to prevent this from occurring, opportunities for regulatory reform, and the role of other states and the Commonwealth.

Ms Palaszczuk said Mr Lyons’ duties will also include consultation with industry, specifically those who participated through the roundtable process.

“I have asked for a report, including recommendations be provided to government by mid-November.

In addition to the investigation, government is taking steps to ensure operators are complying with the law.

Minister Miles said Operation TORA involving officers from the Department of Environment and Heritage Protection (EHP), Department of Transport and Main Roads (TMR) and Queensland Police Service (QPS) is continuing.

“Officers on the ground are blitzing interstate trucking waste,” he said.

“This is an important industry that contributes to the economy and employing thousands of Queenslanders.”

Recycling Markets
The emerging ‘circular economy’ in Australia is subject to unpredictable price fluctuations in the global market. Currently, glass has a marginal value, and plastic prices are at a historic low. The stockpiling of materials prior to recycling is a normal process in the recycling market, and stockpiled glass from kerbside collection is neither a hazardous material nor a fire risk.

In order to stimulate recycling markets, the NWRIC is proposing that more landfill levy money be hypothecated back to industry. The NWRIC advocates this revenue be used to support uniform and comprehensive regulatory enforcement, statewide waste management and recycling infrastructure planning and the creation of viable, long term markets for recycled products.

Where levy revenue is to spent directly on infrastructure projects, the NWRIC proposes that funds be offered as loans rather than grants – as this structure ensures transparency, accountability and a level market. The Clean Energy Finance Corporation serves as an existing model for this type of program.

To assist governments in creating the regulatory conditions conducive to stimulating investment into the circular economy, the NWRIC has produced its National Roadmap for a Circular Economy. Read more about it here. This document offers a range of regulatory solutions to improve the environmental, social and economic performance of Australia’s waste and recycling industry, and is available from the NWRIC website.

 

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