Reducing cross-border waste issues through levy reform

Significant differences in landfill levies across states and territories are leading to levy avoidance. Each year, an estimated 1.5 to 3 million tonnes of waste is transported significant distances, dumped, stockpiled or mislabelled to reduce or avoid state levies.93

Most worryingly, hazardous material is sometimes taken across state borders and disposed of inappropriately.94

Dealing with interstate waste is a particular challenge in New South Wales and Western Australia because their levy rates for solid, liquid and hazardous wastes are more variable than in other states.95

The Australian Government should demonstrate best practice levy structures, pricing and administration to accommodate harmonisation. To support reform, it will need to collect information about which waste streams are levied, the definitions applied, where the levy liability is charged and how the levies are administered.96

Introducing a consistent, harmonised levy pricing strategy would remove interstate levy differences and address the inappropriate movement and disposal of waste between states.97 The result would be enhanced environmental protection and increased resource recovery.98

The pricing strategy should be supported by national protocols that define:

•  which wastes should be levied (solid, liquid, hazardous)

•  time limits for recycling before a landfill levy is charged

•  levy liabilities (for example, at generation point)

•  distances that waste can be moved

•  how the levy is administered.99