Compost, FOGO, FOGO, Opinion

Unlocking $81 million for councils to lead organics recovery

Organics mandate

By: Ilan Levy Nadelsticher
The New South Wales (NSW) Government is taking a big step toward a circular economy. A new mandate regarding organics requires all Councils to offer a Food Organics and Garden Organics (FOGO) service by 2030. Businesses (supermarkets, cafes, universities, and hospitals etc), are required to have a food waste collection service, with a staged implementation beginning in 2026. This move is meant to reduce the amount of waste going to landfills, particularly in Greater Sydney, where landfill space is expected to run out by 2030. The goal is to either turn food and garden waste into useful compost for farms, parks, and sports fields through composting, or generate electricity via anaerobic digestion (AD).

Large supermarkets will also need to report the amount of food they donate to charities like OzHarvest, SecondBite, and Foodbank. To assist, the NSW Government is supporting local councils, businesses, and other groups that will be making these changes through a $81 million funding package.

Breaking down the $81 million support package

The NSW Government is providing funding to make it easier for different sectors to switch to FOGO services. The main areas of support include:

  • $72 million for local councils, which will be used for:
    • New bins, kitchen caddies, and liners
    • Audits to check for contamination and education programs for the community
    • A statewide campaign to help households and businesses get used to FOGO
    • Extra staff to help roll out the FOGO services.
  • $9 million for other projects, including:
    • $4 million to help apartment buildings start FOGO
    • $3 million for a statewide advertising campaign to encourage people to change their habits
    • $1 million for yearly education campaigns in councils that already have FOGO services
    • $1 million for a pilot program using artificial intelligence to target areas with high contamination.

Funding opportunities for councils

A key part of the funding plan is the Go FOGO grant program, which offers $50 million to help councils start FOGO services. There will be two rounds of grants each year until 2027, Rounds 1, 2, and 3 have already been granted, but there is still $31.5 million available for future rounds. Councils are encouraged to apply for this funding to make sure their waste management plans follow the new rules.

Key grant conditions:

  • Councils have flexibility in how they use the funding, whether for staff, education, bins, or contracts.
  • Payments are made in three stages, with the largest payment upfront.

Eligibility criteria:

  • Only local governments are eligible to apply.
  • The funding supports the rollout of FOGO or Food Organics Exemption (FOE) services.
  • The FOGO collection service must run weekly for at least 7 years.
  • It must include providing kitchen caddies and usage instructions.
  • Waste must be processed at a lawful offsite facility.
  • Community education must be part of the plan.
  • Applications must be submitted through the SmartyGrants portal.

Funding allocation:

  • $50 per single-unit dwelling transitioning from no service to weekly FOGO.
  • $25 per unit transitioning from no service to weekly FOGO collection.
  • $10 per household moving from garden-only collection to FOGO/FOE.
  • An additional $50,000 is available for areas with a large number of multi-unit dwellings.

The road ahead: ensuring compliance and long-term success of organics

The NSW Government’s FOGO mandate is a step toward reducing landfill waste and promoting sustainability. By separating food and garden waste, the program will help divert one million tonnes of waste from landfills each year, mostly by turning it into valuable compost for agriculture and public spaces.

Looking ahead, the success of this initiative will depend on ongoing community engagement, industry collaboration, and government support. This mandate not only sets a positive example for NSW but also paves the way for other States to adopt similar measures and drive a nationwide shift toward sustainable waste management.

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