The landfill levy for putrescible waste in Western Australia will jump to $28/tonne from July 1 this year. The shock 300% increase, revealed as the state’s budget was handed down last week, appears to have been decided without any stakeholder consultation. Inside Waste understands the state will now seek to amend its WARR Act to allow the increased revenue to be directed to DEC activities other than waste.

The levy for putrescible waste was expected to rise to $8/tonne on July 1, but the government has taken a more aggressive approach to “create a disincentive to dispose of waste to landfill”. It says the impact on local government authorities, if the increase is passed on in full, will result in the average householder being charged an estimated extra $24 per year through their local council rates.

The levy for inert waste is also being hiked up 300% to reach $12/m3. The waste industry is now scrambling to prepare for the unexpected changes, which are due to take effect in about six week’s time.

The state’s landfill levy has to date been fully hypothecated back to the waste industry, a condition that has been the envy of waste operators in other states. But it appears WA is looking to follow the lead of other states.

Inside Waste understands Environment Minister Donna Faragher is seeking to amend the states Waste Avoidance and Resource Recovery (WARR) Act 2007 to allow the collected revenue to be directed to Department of Environment and Conservation (DEC) activities other than waste.

With over 1.25 million tonnes of waste disposed to putrescible landfill in Perth (2004 figures), the new $28/t landfill levy could potentially generate around $35 million, while the roughly 1.5 million tonnes of inert C&D waste could generate a further $18 million, making $53 million in total.

The 2009-10 State Budget itself forecasts the increased levy will produce $39 million in extra income for the state. Total expenditure for delivery of services by DEC as outlined in the budget is about $308 million.

Interestingly, the budget does not expect diversion from landfill to rise, forecasting a recycling rate of 40% in 2008/09 and the same in 2009/10.

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