On 25 February 2013 the NSW Minister for Environment announced a
$465.7 million waste management initiative, '
Waste Less, Recycle More. This follows KPMG's recent
independent review of the waste levy system. The package will be
rolled out over 5 years. This package includes significant funding
for both new infrastructure and the "renovation" of
existing infrastructure, as well as programs aimed both at industry
and councils. The initiative presents significant opportunities for
those involved in the waste industry.
Some highlights of the package are as follows:
$250 million Waste and Recycling Infrastructure package,
$70 million to the Organics Infrastructure fund and
program, with $43 million in contestable grants over 4 years.
This is largely aimed at supporting new and renovated
infrastructure and equipment to process co-collected food and
$70 million for improving systems for household problem
wastes, by creating and managing a network of drop-off centres
$60 million for the Waste and Recycling Infrastructure
fund, to target waste generated in waste levy regulated areas,
including business and industry waste. Specific target areas
include recovering recyclables from sorted and unsorted waste,
reuse, recycling and reprocessing recyclable materials, as well as
energy recovery from residual business and household waste.
Contestable grants will be open to councils, groups of councils,
not-for-profit organisations and industry including for renovating
and upgrading infrastructure and building and upgrading transfer
Business Recycling program of $35 million over 5
years, to fund large scale sorting facilities for mixed waste
streams from business and industry, as well as support the
introduction of such recycling services for smaller businesses;
$15 million Recycling Innovation fund, to improve the
efficiency of recycling facilities and establish recycled material
markets through infrastructure and targeted market support.
$137.7 to local councils to improve recycling and
decrease illegal dumping and littering, including:
$38.7 million, to be paid out in early 2013 to local
councils that pay waste levies, to assist the transition from
the Waste and Sustainability Improvement Payment program;
$70 million over 4 years, from 1 July 2013, to
councils, to improve recycling and reduce littering and illegal
$9 million for councils that pay waste levies to fund
regional coordinators, infrastructure planning and the development
of Regional Waste Avoidance and Recovery strategies;
$7 million to support regional and rural local
councils, to facilitate landfill consolidation, including
building and upgrading transfer stations and environmental
improvements to small landfills servicing rural communities.
Local councils also have exclusive access to $85.1
million of contestable grants and other programs
$44.3 million to support new and upgraded drop-off
centres for household problem waste;
$17 million to help local communities and councils
establish organics collection systems and community education;
Contestable grant funding and programs, for a further
$133.9 million, including for illegal dumping clean-ups,
household chemical collections and waste and recycling
infrastructure, to support levy paying communities.
There are also some proposed changes to the waste
The 10 % levy exemption for virgin excavated natural
material disposed of at a landfill will be reinstated, so
operators can re-use the material on-site for operational purposes;
A 5-year structural adjustment program by way of
graded deductions, will be introduced to assist the three metal
shredding operators in NSW modernise their operations.
These changes to the current waste levy program and funding
package present a number of opportunities to clients. If you would
like to discuss whether and how the exemption for the waste levy
applies or opportunities and applications for funding, please do
not hesitate to contact us.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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This legal update is an overview of existing eligible project activities and new project types proposed to be developed.
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