Changes to the Landfill Levy Regulations

A decision to increase the landfill levies for inert and putrescible landfills by 300% was announced on 14 May 2009 as part of the State Government’s 2009/10 Budget. The increase in the landfill levies is a necessary step to reduce waste going to landfill and support increased rates of recycling, particularly in the construction and demolition sector.

The State Government decided to introduce this increase from 1 January 2010 rather than 1 July 2009. The deferral of the increase until 1 January 2010 was intended to provide additional time for affected industries to prepare for the changes and will allow the Waste Avoidance and Resource Recovery Amendment Bill 2009 to be enacted prior to the 300% increase in levies taking effect. Until this time, the existing scheduled levy rates under the Waste Avoidance and Resource Recovery Levy Regulations 2008 will apply. From 1 July 2009, these rates were $3/cubic metre at Category 63 landfill and $8/tonne at Category 64 and 65 landfills.

The Government introduced the Bill into the Legislative Assembly on 18 June 2009. To ensure that waste management priorities continue to receive funding consistent with existing levy revenue, the Bill provides that at least 25 percent of the forecast levy revenue is to be directed to the Waste Avoidance and Recovery (WARR) Account. Under the Bill, the Waste Authority remains responsible for administering the WARR Account and funds from the WARR Account can only be used for purposes related to waste management.

The Bill also provides for the Department of Environment and Conservation to use levy revenue for broader environmental and conservation purposes. This approach to hypothecation is consistent with the practise in New South Wales, Victoria and South Australia, which all apply levy revenues to a broader range of purposes than waste management alone.

The geographic extent of the landfill levy will not be changed under the amendments. The levy will still apply only to waste disposed in the Perth metropolitan area, or to waste from the metropolitan area disposed anywhere in the State. The Government has also made no announcements on future increases to the landfill levy. However, Hon Donna Faragher MLC, Minister for Environment; Youth has indicated she will be paying close attention to the effect of the increased landfill levy on recycling and resource recovery outcomes.

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