South Australia increases waste levy

South Australian Treasurer Tom Koutsantonis has announced that as part of the 2016–17 state Budget, the solid waste levy will increase from $62 per tonne to $103 per tonne by 2019–20. The first tranche increase of $5 came into effect from 1 July, with an additional $14 per tonne increase to be applied from 1 September.

The planned increases are designed to raise an additional $64 million over the four-year period. According to Koutsantonis, the additional funds will be “reinvested into industry development to grow jobs, promote recycling and lower carbon emissions”.

Waste Management Association of Australia (WMAA) CEO Martin Tolar said the announcement “represents a mixed bag for our industry and our local government members”. He noted that while many industry participants were aware an increase in the levy of approximately $5 per tonne was coming, most were unaware of the second increase set for 1 September.

“Such late notice is problematic, as we are now five days into the new financial year and budgets have been set many months ago,” said Tolar. “Revisions at this late stage will prove to be both costly and difficult.”

The WMAA has, however, welcomed the decision to use the money raised via waste levies to increase recycling rates and create more jobs in the sector. According to South Australian Branch President Mark Rawson, “The Treasurer’s decision was the result of many years of hard work to get the government to release funds for the development of the industry, as has happened in other jurisdictions around the country.”

While Tolar is supportive of the outcome, he said it is “disappointing that existing levies could not have been used as the basis for the investment back into the industry”.

“What we are seeing is a robbing-Peter-to-pay-Paul approach to industry development,” he said.

“WMAA is somewhat concerned that of the $64 million that will be raised, only $26.4 million will be directly invested back into the waste management and resource recovery industries. Of particular concern is the open-ended nature of the almost $22 million that will fund South Australia’s transition to a low-carbon economy and make Adelaide a carbon-neutral city.

“Based on the information at hand, it looks like the state’s waste sector is bearing the bulk of the cost to transition South Australia towards a low-carbon economy — a cost we believe should be borne equally by the entire South Australian business community.”

The WMAA plans to undertake consultation with its members before issuing a formal response to the announcement.