Landfill Levy FAQs

​Why is there a landfill levy?

The Tasmanian Government landfill levy encourages people to reduce waste, and to reuse or recycle materials instead of sending them to landfill.

The introduction of the landfill levy was a step towards better waste management and resource recovery in Tasmania. It helps fund projects that support local industries, create job opportunities, and educate the community about waste reduction. Additionally, it is used to fund programs that tackle littering. The levy is part of a broader plan by the Tasmanian Government to improve how we handle waste.

A landfill levy is one of a range of strategies being developed by the Tasmanian Government to improve resource recovery in Tasmania. Information about other initiatives can be found on the NRE Tas website, including the container refund scheme, grants programs, phasing out of a range of single use plastics​, and improved litter reporting systems.

When did the landfill levy start?

The landfill levy commenced on 1 July 2022.

How much is the levy, and why?

The Tasmanian Waste Levy Impact Study 2020 found that the best way to reduce waste and increase resources recovered from landfill was to introduce the levy in stages over multiple years:

• ​An initial rate of 12 fee units per tonne for the first two years (2022 to 2024)
• After two years, the levy increased to 24 fee units per tonne (2024 to 2026)
• From 1 July 2026, the levy will be collected at its full rate of 36 fee units per tonne.

The fee unit value for the 2026–27 financial year is $1.96. Based on this, the landfill levy will be $70.56 per tonne.

For a typical household, the expected impact of the 1 July 2026 increase is an additional $23.68 per year.

The levy amount is set in the Act and Regulations as fee units so it keeps pace with inflation. This means the actual levy charged will change as the fee unit rate is adjusted each year. Some of this cost may be reflected in council tip fees or, in some cases, in council rates.

According to the Impact Study, the levy is expected to inject $121 million back into the economy in the decade following its introduction. Additionally, it aims to significantly increase recycling and waste recovery rates, with a target of reaching 69 per cent by 2030, up from 45 per cent.

 Waste Levy Impact Study - UrbanEP (PDF 3Mb)​

Why is the levy going up?

The increase on 1 July 2026 is the final step in a staged schedule that was set in legislation when the levy was introduced. The levy rate is moving to its full level of 36 fee units, which will be $70.56 per tonne based on the 2026–27 fee unit value.

The dollar amount will continue to be adjusted each year in line with changes to the fee unit value.

Tasmania's landfill levy remains the lowest in Australia. This brings Tasmania into line with the approach taken by most other Australian jurisdictions and ensures sufficient funding to improve waste and resource recovery infrastructure statewide.

The increase will return more funding to Tasmania, supporting local jobs, projects and businesses that expand reuse, repair, recycling and recovery options and drive the transition to a circular economy.​

Do people in other states have to pay a levy?

Yes. Most Australian states and territories have a landfill levy in place. Some jurisdictions, such as New South Wales and South Australia, have operated levies for several decades.

Levy structures vary across the country, with some states applying uniform statewide rates and others using tiered systems based on location.

In regional areas across mainland Australia, landfill levies are typically in the range of $70 to $100 per tonne, although they can be higher in some jurisdictions such as South Australia. The average is around $80 per tonne.

In metropolitan areas, levies range from $88 per tonne in Western Australia to $174 per tonne in New South Wales. 

At $70.56 per tonne, Tasmania’s landfill levy remains the lowest in Australia.

​Why is the levy going up when cost of living pressures are already stretching budgets?

The Tasmanian Government understands that many households and businesses are facing higher costs, including housing, fuel and everyday expenses. The timing of the final increase reflects the staged schedule set in the legislation when the levy was introduced. It was designed to give councils, businesses and the community time to plan and reduce the amount of waste they send to landfill.

​Unlike many other costs, all revenue from the levy remains in Tasmania and is reinvested in projects and initiatives that support waste and resource recovery services that benefit the community. The levy is also only charged on waste sent to landfill. People can reduce the amount they send to landfill over time by making use of recycling, reuse and organics options where they are available.

What does the increase mean for me?

Households and businesses do not pay the levy directly. It is paid by landfill operators on each tonne of waste they dispose of to landfill. Some of this cost may be reflected in tip fees or, in some cases, in council rates. The impact will vary depending on how operators manage their waste services and charges.

Importantly, there is a difference between tip fees and the levy. Tip fees are set by individual landfill operators or councils and include a range of costs beyond the levy. See the question on tip fees for more detail.

For a typical household, the expected impact of the 1 July 2026 increase is an additional $23.68 per year.

Your local council will provide information about any changes to its fees or rates.

Will councils or landfill operators put their tip fees up?

It is recognised that cost increases are a concern for households and councils, which is why the levy has been introduced gradually and remains the lowest in Australia.

The levy is one of several costs that landfill operators must consider when setting gate fees at the tip and managing their budgets. Some councils or landfill operators may decide to pass part of the levy cost on through changes to tip gate fees or rates, while others may manage it in different ways. These are decisions for individual councils or operators.

If you want to know whether fees or rates will change in your area, please contact your local council or landfill operator, or check its website for information.

Is everyone in Tasmania charged the same levy?

The levy applies consistently across Tasmania, ensuring all landfill disposal is treated the same regardless of location. However, the amount effectively paid can vary. In some remote areas (King Island, Flinders Island and the West Coast), a full rebate and additional assistance is provided. This recognises differences in costs and access to services and supports fair application of the levy statewide.

Will my tip fees or rates go down if I recycle or reuse more?

Not necessarily. While recycling and reusing reduces the amount of waste sent to landfill (and therefore the amount of levy paid overall), it doesn’t automatically lead to lower tip fees or council rates for individuals.

This is because councils and landfill operators set their own fees based on a range of factors, including operating costs, infrastructure and service delivery, not just the levy.

While tip fees are set by individual operators, there are steps you can take to reduce the amount of waste you send to landfill, which means less levy is paid on your waste, See the next question for more detail.

How can I reduce what I pay at the tip?

The simplest way to reduce what you pay at the tip is to send less waste to landfill. The levy is not charged on materials that are reused, recycled or sent to approved organics facilities. You can reduce what you take to landfill by:

• ​Using your kerbside recycling service correctly
• Using a food or garden organics service where it is available
• Taking reusable items to a tip shop or reuse centre

Separating problem wastes such as e-waste, paint or chemicals and using appropriate collection services.

For more information on what services are available in your area, contact your local council.

​When I go to a Waste Transfer Station, will I have to pay the levy?

Waste Transfer Station operators pay the levy on waste that they eventually dispose to landfill, so they are likely to pass on the levy cost to the public through their gate fees. 

It is expected that operators attempt to divert waste materials towards recycling as much as possible by collecting items such as glass, paper, plastic, e-waste, cardboard, batteries, clothing, polystyrene, construction materials, paint tins, furniture, mattresses and more. This can help reduce their costs, which may in turn help limit costs to the public. In addition, members of the public can reduce the amount they take to waste transfer stations by making use of recycling, reuse and organics options where they are available, reducing fees overall.

​Will I need to pay the levy on materials that can be recycled?

The levy only applies to waste disposed of into landfill. If you go to a resource recovery facility, you will only pay the facility's operational or handling fees (if they charge them). If you go to a waste management centre that includes both a landfill facility and resource recovery facilities (e.g. tip shop or bins for recycling materials), you may be able to avoid or reduce what you pay if you divert waste into resource recovery options. 

If in doubt, ask the operator of the facility. ​​

Do businesses have to pay the levy?

Businesses that send their waste to landfill may pay increased fees either at the landfill gate or through council rates. However, if businesses recycle, reuse and reduce their waste, this will reduce the amount of levy paid on their waste.​

Has there been consideration for the effect of the levy on businesses and the community?

Yes. The authors of the Tasmanian Waste Levy Impact Study 2020 consulted with local government, State agencies, regional organisations, industry bodies, commercial waste generators, landfill operators and resource recovery operators about the impacts of a levy. 

Feedback from the study, as well as feedback on the Government's 2019 draft Waste Action Plan, showed strong support for the introduction of a state-wide landfill levy for its environmental benefits and for the development opportunities it will stimulate for the resource recovery sector.

The Tasmanian Waste Levy Impact Study 2020 found that the Tasmanian community would be better off with a levy than without a levy, due to the broader benefits to society that a landfill levy brings.​

What consideration has been given to charities?​

Charities and not-for-profit businesses that receive donations of goods from the public for repurposing and recycling play an important role in the circular economy.

Receiving donations from the public makes them vulnerable to having waste dumped at their premises. There is also residual waste from their operations, such as donations that are unusable or not fit for purpose.

The Tasmanian Waste and Resource Recovery Board administers an assistance program to charitable recyclers. The Charitable Recycler Rebate Program​ was launched in February 2023 following consultation with Charitable Recycling Australia. The rebate program was determined to be a more effective mechanism than an exemption. Registered charitable recyclers can apply for a rebate on the levy paid on residual waste from their operations.

​​​​Who is imposing and collecting the levy?