Landfill Levy FAQs

​​​​What is the Tasmanian Government Landfill Levy? 

The Tasmanian Government landfill levy is a fee on waste disposed of in  landfills, effective from1 July 2022. The aim of the levy is to reduce the amount of waste going to landfill. This will benefit the environment and create economic benefits by keeping the resources that can be recovered from waste circulating in the productive economy. We call this the 'circular economy'.

The levy is set through the Waste and Resource Recovery Act 2022 and Regulations, the legislation requires a levy to be paid by landfill operators for each tonne of waste that is received at the landfill. Landfill operators usually pass on the cost of the levy to their customers.  Most landfill operators already charge a gate fee to cover their operational costs.

​Why is there a new landfill levy?

The Tasmanian Government Landfill Levy is to encourage people to reduce waste, and to re-use or recycle materials instead of sending them to landfill.

The introduction of the landfill levy is 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 will also be used to fund programs that tackle littering. This 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.

How much is the levy, and why?

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

  • An initial rate of 12 Fee Units per tonne for the first 2 years (2022-2024)
  • After two years, the levy will increase to 24 fee units per tonne (2024-2026)
  • After a further two years (2026 onwards), the levy will increase to 36 fee units per tonne. 

​The landfill levy for 2024-​25 will be $44.88 per tonne.

  • ​The levy amount is set in the Act and R?egulations as fee units so it keeps pace with inflation. This means that the actual levy charged will change as the fee unit rate is adjusted each year.  It is expected that the cost will be passed on to householders and businesses at the landfill gate and through Council rates. As the levy increases through time, projections over a 10-year period are that the average cost to householders would be $7.67 per person per year.

The levy is expected to inject $121 million back into the economy over the next 10 years. Additionally, it aims to significantly increase recycling and waste recovery rates, with a target of reaching 69% by 2030, up from the current 45%.​

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

When did the landfill levy start?

The landfill levy commenced on 1 July 2022.

​Who is imposing and collecting the levy?

The Tasmanian Government has implemented the levy through the introduction of legislation. Landfill operators (including councils that operate a landfill) are required to pay the levy to Department of Natural Resources and Environment Tasmania, who administer the levy and ensure compliance with all levy regulations.

Levy funds are directed into a dedicated reinvestment account established and managed in accordance with the legislation.​

​What happens to the levy collected?

Funds from the levy are used to promote resource recovery, providing opportunities for recycling businesses, and to educate the public about waste and levy regulation.

For more information on how the levy is being re-invested back into improving waste outcomes for Tasmania see the Waste and Resource Recovery Board website.

How will regulation and compliance be managed?

Regulation and compliance of the levy system will be managed through officers of the Department of Natural Resources and Environment Tasmania, according to the legislation and relevant regulations. 

The potential for additional littering and dumping because of the levy's introduction will be addressed through additional capacity for the Environment Protection Authority (EPA) to undertake relevant compliance activities.​

Do businesses have to pay the levy?

Businesses that send their waste to landfill will pay increased fees either at the landfill gate or through council rates. However, if businesses recycle, re-use and reduce their waste, they will pay less at the gate.​

Will the levy increase result in more illegal dumping?

Illegal dumping by the public has occurred for a long time before the levy. There may be an increase in illegal dumping of rubbish, such as in bushland areas. The reasons why some people dump their rubbish are not clear. Although logically there is a link between the cost of disposal and illegal dumping, for some people it is simply anti-social behaviour.

To discourage illegal dumping the Government has recently increased fines for littering and illegally dumping waste and increased resources for the investigation and prosecution of illegal dumpers. Some of the levy revenue will further support programs that tackle littering and illegal dumping (including education) around the State.​

Do people in other states have to pay a levy?

Yes. Most states and territories currently have a waste levy, and some states have had a levy in place for decades.?

The average rate of the levy in regional areas on mainland Australia is around $80 per tonne. The landfill levy in metropolitan areas around Australia varies between $85 per tonne (Western Australia) to $170 per tonne (New South Wales).​

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 will 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 will reduce their costs, and therefore the cost to the public.

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. ​

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 can bring.​

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 and will be able to apply for grants programs offered by the Waste and Resource Recovery Board.

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. 

It is a statutory function of the Tasmanian Waste and Resource Recovery Board to administer an assistance program to assist charitable recyclers. This process was developed after consultation with Charitable Recycling Australia and took into account their advice that a rebate program was a more effective mechanism than an exemption.​

How will the levy funds be governed?​

The Waste and Resource Recovery Act 2022 establishes the Tasmanian Waste and Resource Recovery Board (the Board). 

The Board is a statutory entity of five to seven members who are appointed by the Minister. Further information about the Board is available on the Waste and Resource Recovery Board webpage.

Levy funds will be governed by the Board.

What are the main roles of the Board?​

The Tasmanian Waste and Resource Recovery Board​ has developed a strategy to guide waste and resource recovery activities across Tasmania. The key objectives are to divert waste away from landfill and increase resource recovery. The functions of the board include monitoring the effectiveness of practices across the State to drive continuous improvement. 

 Further information about the Board is available on the Waste and Resource Recovery Board webpage.

What are the benefits of the levy, in the long term​?​​

Landfill can harm the environment over time by polluting groundwater, emitting odours, contaminating the land, and producing the potent greenhouse gas methane Landfills also occupy valuable land that could otherwise be used productively, and attract pests, that can make the land more challenging to manage.

Many waste materials can instead be reused, recycled, or converted into useful resources (ie. compost, fuel), all of which align with circular economy principles. The landfill levy is predicted to reduce waste to landfill by 210,000 tonnes per year by 2030/31, which will extend the life of existing landfills and reduce the need for new facilities.

The levy is providing a source of funds to further stimulate the growth and development of resource recovery and reprocessing businesses and operations throughout the State. According to the Tasmanian Waste Levy Impact Study 2020, the resource recovery sector creates 6.4 jobs per 10,000 tonnes of recovered waste, hence the levy could result in around 130 new Tasmanian jobs.

Contact

Waste Levy and Data Group

GPO Box 44,
Hobart, TAS, 7001.