Waste Recycling Industry Association of Queensland (WRIQ) has released advice following the state Government’s release of QLD’s Energy from Waste Policy and its decision to defer the landfill waste levy.
Mark Smith, WRIQ CEO said the QLD Government has had to make tough decisions in the wake of Covid19 and that’s included deferral of the landfill levy.
“Responding to this we’ve put advice together with the support of one of Australia’s leading law firms, Minter Ellison, so our members are supported to adapt to this recent announcement,” he said.
The association, in collaboration with Minter Ellison, has released a two page alert for its members following the state Government’s new developments that will impact landfill operators across QLD.
“I don’t want to see rogue operators exploiting the situation and one of the ways industry and government can reduce this is both of us playing a role in communicating about expectations and changes and that’s what we’ve done with this advice,” Mark said.
In its advice to WRIQ members, the alert states that the announcement of a six-month deferment to the waste levy increase that was set to begin on July 1 2020, may also impact on the entities who use landfill facilities, depending on how their payment arrangements with landfill operators are structured.
WRIQ advised members that the amounts for the waste levy are set out in Schedule 1 of the Waste Reduction and Recycling Regulation 2011 for the foreseeable financial years until 2022.
“The waste levy will therefore remain at $75 per tonne for general waste, $105 per tonne for category 2 regulated waste, and $155 per tonne for category 1 regulated waste, until 31 December 2020,” the alert to WRIQ members states.
It was initially proposed $5 per tonne increases across all categories of waste, effective 1 July in each financial year, however the effect of the Government’s proposed change will be to defer the increase for the 2020-21 financial year to commence on 1 January 2021.
WRIQ advises members to consider proposing a variation to the contract, or consider whether ‘change of law’ clauses apply.
One reason for landfill operators to review their contractual arrangements in light of the deferral is because of the requirement under section 72K of the WRR Act that in order to claim ‘bad debt credits’ back from the State, should your customers become insolvent in the future and not pay, the ‘service delivery charge’ excluding GST imposed on the insolvent customer must not have been more than the waste levy at the relevant time, the alert stated.
The association said members need to take necessary steps for a manual override for six month and any misrepresentations in standard documentation should be corrected when the deferral occurs.
In its advice to local governments, WRIQ said they will need to factor this in to any budgetary decisions made on the assumption of an increased levy, and ensure that any representations made about the amount of the levy in relevant materials provided to ratepayers, including on all websites are correct.
Smith said industry feedback is welcome and he is encouraging any business operating in Queensland’s waste and resource recovery sector to take part in its regulator survey.
“This information collected provides us an evidence base to encourage better alignment with government processes and commercial realities around a number of factors including proposed changes to landfill pricing the notification period given to businesses,” he said.
WRIQ has also received advice from the QLD Minister for Environment, Leeanne Enoch, and the association is taking steps to organise more detailed explanation of the policy to its members.