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

The levy will apply to all major waste streams
The waste disposal levy will apply to all general waste streams—MSW, Commercial and Industrial (C&I) waste and
Construction and Demolition (C&D) waste—and regulated wastes that originate from a defined levy zone or are
disposed to landfills within that zone.

Exemptions and concessions for specific waste streams are discussed later in this Directions Paper.


The levy rate will commence at $70 per tonne for all general waste streams,
with higher rates for regulated waste, and increase by $5 per year
A waste disposal levy needs to be set at a level that is        Table 1: Waste disposal levy rates
going to drive waste diversion and facilitate resource
recovery, without stifling business and economic growth.                                                         Levy rate
                                                                 Waste classification
                                                                                                              (per tonne)
Levies in other states vary considerably, with NSW having
the highest levy at $138.20 per tonne. This creates a            Regulated waste: Category 1                        $150
significant incentive for the transport of waste to lower
cost facilities.                                                 Regulated waste: Category 2                        $100
                                                                 General waste: C&D, C&I and MSW                     $70
A levy rate set at a minimum of $70.00 per tonne for
the disposal of all general wastes will ensure that an          Regulated wastes are those wastes, as defined in the
appropriate level of disincentive is provided to move           Environmental Protection Regulation 2008, whose
waste from disposal to higher order and value-add uses.         characteristics mean that they have the potential to
This rate has been suggested for the following reasons:         pose an increased risk to the environment if they are
                                                                not managed appropriately. Some of these wastes also
1. It avoids the high rate in the Sydney metropolitan           have high resource recovery value and there are disposal
   area of $138.20. A high levy rate would create a shock       alternatives available. A higher levy on these wastes will
   to the market and the current resource recovery              help to address some of the cost imbalance between
   infrastructure capacity may struggle to meet high            disposal and higher order recovery options.
   demand to divert material from landfill disposal.
   However, $70 per tonne is still considered to be high        Waste disposal levies in other states have annual
   enough to send an appropriate price signal to the            increments that increase the levy rate over time. The
   market and will act as an immediate incentive to divert      Queensland levy rates will increment at $5 per year over
   heavier materials, such as concrete, from landfill.           the next four years to continue to incentivise change
2. It is broadly in line with the rates in Victoria and South   in material recovery, recycling and waste disposal
   Australia, and would provide a strong market signal to       behaviours and practices.
   divert waste from landfill without the market shock of
                                                                Higher gate fees in NSW may maintain the incentive
   a rate in line with NSW.
                                                                to transport some waste to Queensland. Gate fees
3. It provides a disincentive to transport a significant        (excluding the levy rate) are determined by a combination
   proportion of interstate waste to Queensland.                of market factors and reflect impacts including site
                                                                management and disposal costs, competition and
                                                                relative scarcity of landfill space in proximity to Sydney.
                                                                This is why the new waste management strategy is also
                                                                proposing companion measures, such as landfill disposal
                                                                bans, to further reduce incentives for the transport of
                                                                interstate waste.

                                                                Further work will be informed through the Stakeholder
                                                                Advisory Group and public consultation processes to
                                                                develop the detailed levy model.




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