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Waste export levy to be scrapped in federal budget after warnings
'recycling tax' would send more waste to landfill
(HTM) Source
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* **In short:** A charge on exported waste labelled a "recycling tax
* The federal government says it has heard industry concerns the lev
* **What's next?** The final stage of waste export rules, regulatin
A so-called "recycling tax" due to be imposed on waste exporters will
be scrapped as part of next week's federal budget.
The waste industry expressed fears a proposed $4 per tonne levy on
waste exports due to begin in July could send rubbish that would have
been recycled to landfill instead.
The levy was legislated by the Morrison government in 2020 as part of
laws to reduce and regulate waste exports after China caught Australia
off guard by saying it would no longer handle Australian rubbish.
But a price was never set and was left to the Albanese government to
determine when the final stage of the export ban would take effect.
In a submission ahead of the budget, the National Waste and Recycling
Industry Council said the levy amounted to a "tax on the recycling
industry" that would likely be passed onto local councils and
consumers.
Now federal Environment Minister Tanya Plibersek says the government
will formally reverse the legislated levy.
"Unlike the Liberals and Nationals, Labor listened to industry and
will not be introducing a levy on waste exports," Ms Plibersek said.
"We want to see more recycling and avoid waste going into landfill,
which this levy would have caused."
Environment Minister Tanya Plibersek said the government had listened
to industry concerns.(ABC News: Luke Stephenson)
## Scrapping levy part of Australia's move to deal with its own waste
Australia has been seeking to reduce its reliance on recycling rubbish
overseas since 2017 when China's "Operation National Sword" policy
left Australia without a buyer to process hundreds of thousands of
tonnes of Australia's waste.
Since glass, plastic and tyre exports were "banned" from export in
2021, the amount of that waste being sent offshore has been slashed
from about 255,000 tonnes a year to less than 80,000 tonnes a year of
regulated glass, plastic and tyre waste.
But more than 754,000 tonnes of paper and cardboard were still sent
overseas last financial year, mostly to Indonesia, India and Malaysia.
Paper and cardboard waste is the last export due to be regulated,
after the government invested $1 billion into a "Recycling
Modernisation Fund" to upgrade facilities to be able to meet strict
new contamination requirements.
In line with the final stage of export rules, recyclers were facing a
proposed $4 per tonne charge on waste exports — with that final price
due to be set in next week's budget.
But after consulting with industry, the government concluded the
charge could risk sending more waste to storage or even into landfill
if it ended up more cost-effective to do so.
Australian Council of Recycling chief executive Suzanne Toumbourou
said it was "common sense" not to tax recycling exports.
"What we really look forward to is a fuller review of the Recycling
and Waste Reduction Act," Ms Toumbourou said.
"When it comes to us producing [recycled] products that are fit for
purpose that can reach markets … we need to incentivise that and
accommodate more demand for that through any market, be it domestic or
offshore.
Ms Toumbourou said it would have been counterproductive for the
government to invest $1 billion in upgrading recycling facilities to
then tax the trade of those recycled products.
Suzanne Toumbourou says the government's waste reduction policy should
be thoroughly examined to determine whether it is fit for purpose.(ABC
News: Michael Nudl)
The change also fits into the government's wider strategy for more
packaging waste to be "recovered, reused, recycled and reprocessed"
domestically, with recycled content targets for supermarkets and other
major waste-makers expected to be made mandatory from 2025.
But some industry figures have expressed concern they will still have
to pay a licence fee to export waste at a cost of thousands of
dollars, effectively leaving them in the same position.
Waste Management and Resource Recovery Association chief executive
Gayle Sloan said it would add costs to recycled materials.
"I think it's greatly disappointing that there is an additional charge
being placed on recyclers that will be met by their customers,
generally councils, to export what is a commodity that has not got a
market or demand in Australia," Ms Sloan said.
"It's just going to add cost to what already is a fragile system."
## Waste inquiry begins hearings
A Senate inquiry into waste policy began hearings on Wednesday.
Shadow Environment Minister Jonno Duniam said the inquiry had already
heard claims that the government was handling recycling poorly.
Senator Duniam said the federal government had not allocated a single
extra dollar through the Recycling Modernisation Fund, and the delayed
improvement in capacity was forcing Australia to remain reliant on
sending waste offshore to be recycled.
He added that scrapping the waste export levy legislated by the
Morrison government would be ineffective if a fee for licensing
remained in place.
"A tax, levy and licence fee are the same thing - a disincentive for
industry to recycle paper and cardboard in the way that they know
best," Senator Duniam said.
"Tanya Plibersek needs to do more than gaslight industry with a
supposed good news story but secretly plan to clip honest businesses
with thousands of dollars in extra costs through an impending licence
fee."
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