Michael Dobbs, Environmental Health Officer – Ballina Shire Council NSW

From 1 July 2009 the NSW Labour Government introduced the waste and environment levy to include local government areas in NSW along the coast north of Port Stephens to the Queensland border and west of Sydney to the Blue Mountains and south of Wollondilly.
This extended area became known as the “Regional Regulated Area” and the authority to attach the levy to these facilities was derived from application of “section 88 of the POEO Act 1997 (POEO Act)”. This meant that occupiers of certain scheduled waste facilities are required to pay the waste environment levy, similar to the charged to waste facilities in the metropolitan areas of Sydney, Wollongong and Newcastle.
The introduction of the waste and environment levy was meant to provide an incentive to waste facilities to recycle, reuse and reprocess materials for reuse in the marketplace. A deduction from payment of the S88 levy can only be claimed when waste is either:
- Transported from a waste facility to another place for the lawful reuse, or
- To another facility for lawful recycling, processing, recovery or disposal, or
- Where waste is used for an approved purpose
The current rate for Regional Regulated Areas is $10.00 per tonne with a rise of $10.00 + CPI in July for each of the next 6 years.
The levy is meant to be an economic driver of the resource recovery and the recycling and processing of waste in order to divert and minimise waste to landfill. The State Governments objective as enunciated in legislation is for the diversion off 66% of waste currently disposed of to landfill by 2012
The levy is applied to all waste entering the landfill excluding waste approved for operational purposes. As each year passes the cost to councils of disposing of waste to landfill will increase along with the fees Council will be required to charge in order to recover costs. It is thought that this will drive programs that will reduce waste to landfill or provide an incentive to develop alternate processing and disposal methods.
In addition to the costs of disposal, the cost of licence compliance has also increased substantially. Materials entering the landfill for the intermediate capping, cell maintenance and road works, are now subject to the levy. This has immediate financial implications for the daily operations of the landfill due to licence conditions or licence compliance issues such as daily cover.
Prior to July 2009 sites were able to source shale/clay for $7 – 15 per tonne, but by placing the current $10.00 levy on top of this the cost of materials required for maintenance works and licence compliance has nearly doubled, as only approved final capping and cell construction materials attract the “approved operational purpose” levy exemption.
Within 5 years with the levy at $50.00 (+CPI) per tonne, landfills will only remain sustainable by establishing cost efficient recycling and reprocessing techniques and reuse recovery of materials for onsite purposes with daily cover, cell and road maintenance attracting the levy.
The DECCW initially indicated that 50% of the levy would be returned to Council for approved purposes which would generally involve sustainability and waste reduction, with the approved purpose not being specified or tied by the regulators. However, as the levy approached this was reduced to 50% of the levy pertaining to municipal kerbside collections, and the money could be used for purposes determined by the regulators. If a Council did not have approved programs as per the regulators’ deemed purposes, they risk not receiving the levy return. Additional, the amount was reduced to a percentage of the pool of funds dedicated for the payment by the State Government to be determined on a pro rata basis.














