On 23 August 2016 the NSW Government released the draft Waste Avoidance and Resource Recovery Amendment (Container Deposit Scheme) Bill 2016 (Bill) and discussion paper for public exhibition. The Bill proposes to amend the Waste Avoidance and Resource Recovery Act 2001 by inserting a new Part 5 which establishes a container deposit scheme (CDS) to promote litter reduction and the recovery, reuse and recycling of beverage containers. Due to commence in July 2017, the CDS is one of the NSW Government's methods of achieving a reduction in the volume of litter in NSW by 40% in 2020.1

Features of the CDS

Under the CDS, anyone who returns an empty eligible beverage container to an approved collection depot or reverse vending machine will be eligible for a 10 cent refund, to be funded by beverage suppliers who bring such containers into NSW. A network of depots and reverse vending machines will open across the State to receive the empty containers. All beverage suppliers and retailers must sell eligible beverage containers that display the required NSW Environmental Protection Authority (EPA) approved CDS labelling.

The Bill sets out the objectives and basic framework of the CDS, and enables further details to be provided for under regulation.

The key elements of the CDS are:

  • the establishment of a single scheme coordinator (Scheme Coordinator) appointed under contract by the Minister for the Environment (Minister), responsible for ensuring that State-wide access and recovery targets are achieved, and that refunds are paid for any eligible containers that are returned to a collection point;
  • the establishment of multiple network operators (Network Operators), appointed under contract by the Minister, who will directly run or contract with collection point operators, to ensure there is an effective collection network for people to return their containers for the refund;
  • the payment of refunds by collection point operators to persons who deposit eligible containers at collection facilities;
  • the establishment by the Scheme Coordinator of a cost recovery scheme (Supply Arrangement) under which beverage suppliers (Suppliers) agree to make contributions towards funding the refunds and any handling and administration fees; and
  • an obligation on Suppliers to apply to the EPA for container approval, and to display a refund marking on approved containers.

Offences

The Bill proposes that monitoring and enforcement of compliance with the CDS by the Scheme Coordinator and Network Operators will be administered by the EPA under the powers conferred by Chapter 7 of the Protection of the Environment Operations Act 1997 (NSW). Fines may be imposed for breaches of contractual obligations by the Scheme Coordinator or Network Operators.

Suppliers will be prohibited from supplying beverages in containers that are subject to the CDS, unless they enter into a Supply Arrangement, and obtain the requisite approval from the EPA.

Penalties also apply in respect of a failure by collection point operators to maintain accurate records of refunds paid to and the identity of persons applying for refunds (contingent upon the number of containers for which a refund is claimed).

Review and submissions

The Queensland and NSW Governments have entered into discussions about setting up a single scheme administrator to deliver a CDS in both states.2

The Government seeks feedback on how the scheme will be co-ordinated, the network of collection points, and how refunds to the public will work, and is calling for public submissions to be made by 5pm on 21 September 2016. Information in relation to submissions can be found here.

Please contact Breellen Warry in our Sydney Property and Projects team if you would like assistance in preparing a submission or require more information regarding the likely impact of the Bill.

Footnotes

1 State of NSW, 'NSW Container Deposit Scheme' (Regulatory Framework Discussion Paper, Environmental Protection Authority, August 2016) p 2.

2 Queensland Government, 'Container deposit scheme for Queensland' (Media Release, 22 July 2016) < http://statements.qld.gov.au/Statement/2016/7/22/container-deposit-scheme-for-queensland>.

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.