Rubbish bins

Landfill Levy

Levy Impacts on Non-metropolitan Local Governments - October 2014

The Waste Avoidance and Resource Recovery Levy (WARR Levy) will increase from 1 January 2015. Waste management companies servicing the metropolitan area may approach non-metropolitan Local Governments to secure disposal arrangements. Local Governments need to be aware that there are a range of regulatory requirements that must be met prior to entering into disposal arrangements with waste management companies servicing the metropolitan area.

The infopage that was circulated to Local Governments is available here.

Landfill Levy Increase - May 2014

The State Budget for 2014-15 has been released and includes an increase to the Waste Avoidance and Resource Recovery (WARR) Levy, which is applied to metropolitan waste received at all landfills (metropolitan and otherwise).  Local Governments in the metropolitan area need to be aware of the increase, as it is likely to impact budgets in the 2014/15 financial year.

From 1 January 2015, the landfill levy rate will increase from $28 per tonne to $55 per tonne for putrescible waste, and from $8 per tonne to $40 per tonne for inert waste. These increases are estimated to raise an additional $16.6 million in 2014-15, and a total of $202.4 million over the four year budget period.

Of this revenue, 25% ($51 million) will be paid into the WARR Account to implement initiatives to manage, reduce, re-use or recycle waste, and to monitor or measure waste. In addition, $15 million will be provided to the Office of the Environmental Protection Authority to assist in service delivery. The remaining $137 million will help fund other government priorities.

The infopage that was circulated to Local Governments is available here.

Landfill Levy Background Paper - February 2012

The Municipal Waste Advisory Council (MWAC) endorsed the Final Landfill Levy Background Paper at its February 2012 meeting. The Paper is available here.

Key findings from the Paper were:

  • A high Levy does not equal a high recycling rate;
  • A variety of factors influence resource recovery (such as enforcement, leadership from Government, markets for products, collection systems, infrastructure, education and landfill price); and
  • The Levy alone is not a sufficient economic driver to reduce Municipal Solid Waste (MSW) to landfill.

 For more information, contact Rebecca Brown, Manager Waste and Recycling on 9213 2063 or at rbrown@walga.asn.au

Landfill Levy - May 2009

In the State Budget announcement, a proposed increase to the Landfill Levy (for both putrescible and inert material) was included. This meant a levy of $28/ tonne as of 1 July 2009 – and a council rate/waste charge increase of about $24 per household. The State Government also changed the Waste Avoidance and Resource Recovery Act 2007, to allow the additional funds to be directed to Department of Environment and Conservation activities instead of strategic waste management activities.

This decision was completely unexpected and did not involve any consultation with the Sector – the Association was expecting an increase to $8/ tonne (as per the current Regulations). 

The Association has been working hard to emphasise that:

  • A significant proportion of this additional revenue has to go back to Local Government to support and recycling and resource recovery operations (particularly given the low price for recyclable materials); and
  • The Levy needs to remain hypothecated to Strategic waste management activities - it is not a revenue raising tool for the State Government.

    For further information, please contact Manager, Waste and Recycling, Rebecca Brown on 9213 2063 or email rbrown@walga.asn.au

Waste Management Board Landfill Levy Review

In September 2007 the Waste Management Board engaged a consultant to undertake a review of some aspects of the Landfill Levy. The Consultant, Dr Micheal Blyth of Four Scenes Consulting Pty Ltd, conducted destop review of relevant reports and held interview with selected stakeholders.

The Municipal Waste Advisory Council has developed a Submission to the report. The MWAC Submission is available here. The Submission has been provided to the Waste Management Board.

Background

In 1998 Western Australia brought in a levy on waste sent to landfill in the Metropolitan area of $3 per tonne for putrescible wastes and $1 per tonne for inert wastes.  In some other states of Australia, most notably New South Wales, Victoria and South Australia, much higher levies are charged on waste sent to landfill. 

As of 1 October 2006 the Landfill Levy increased to $6 per tonne for biodegradable waste and $3 per cubic metre for inert waste. In addition to increasing the Levy the Minister also committed to establishing a statutory waste authority to oversee the expenditure of the additional funds raised.  The Municipal Waste Advisory Council expressed conditional support for the increase, based on the amount of the Levy being capped for the next two years and any further increases being justified by evidence of a reduction of waste to landfill. 

Although Local Government initially opposed the Landfill Levy, in 2005, the WA Local Government Association developed a Policy Statement on the Landfill Levy and Strategic Waste Funding which set out conditional support for the Levy System as a means of raising strategic funding for waste management.  The Policy Statement is available here