2018-06-27 SM - Attachment 1 to Item 2 - Directions Paper Transforming Queensland's Recycling & Waste Industry

       The levy will have no direct impact
       on households
       On average, a Queensland household disposes approximately 700 kilograms
       of waste each year through the ‘red top’ kerbside bin service. The amount of
       waste disposed increases to approximately 800 kilograms each year when
       ‘self-haul’ waste is included.

       While it is proposed that the levy will apply equally across all general waste
       streams, the Queensland Government has committed to avoiding direct costs
       to households. This will be achieved in the following manner:
       • The Queensland Government will provide an annual advance on levy charges
           to those local councils that dispose of household MSW in the levy zone.
       • The rate of the annual advance is proposed to be set at 105 per cent of
           the tonnage disposed of in the previous financial year multiplied by the
           current levy rate. The formula will be reviewed in future years.
       • As an example, for a local council with 60,000 kerbside-serviced
           households, an annual average of 700kg of ‘red top’ bin waste per
           household and a levy rate of $70 per tonne, this equates to an annual
           advance payment of around $3 million.
       • If the local council makes savings in the amount of household waste that
           is disposed of—e.g. through the establishment of a new green waste
           collection service—any derived savings would be retained by the council.
       • This provides local government with enough money to offset its levy costs,
           avoid passing on costs to households, as well as providing additional
           funds to invest in measures to recover MSW and encourage the progressive
           reduction of disposal to landfill.
       • Over time, it would be anticipated that the relative proportion of payment
           would reduce as councils re-invest the funds to achieve greater efficiencies
           and diversion.

       This option is preferred to ensure an incentive for improving recycling and
       waste practices applies to household waste while meeting the Government’s
       commitment to avoid the direct costs of the levy being borne by households.

       To exclude household waste from the levy would undermine the objectives of
       transforming Queensland’s resource recovery, recycling and waste management
       industry as many household waste streams, such as organics, will have
       significant recycling value, particularly for emerging biofutures industries.

       Excluding MSW would also undermine the overall success of the waste strategy
       as it puts all the burden on small business and other industry sectors.

       Research into waste disposal levies in other jurisdictions across Australia and
       globally indicates that no other scheme excludes MSW.




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