Media release – Derwent Valley Council, 23 January 2025
Waste levy should be used to develop innovative solutions to waste management challenge
The Derwent Valley Council says the State Government should use the millions of dollars raised through its annual landfill waste levy collected from councils to develop innovative solutions to Tasmania’s waste management challenges.
Derwent Valley Mayor Michelle Dracoulis says the State Government collects tens of millions of dollars annually through councils, from every ratepayer in the State, via the landfill levy and this will increase significantly in coming years.
The Derwent Valley Council has already called for the establishment of a working group comprising representatives from the 12 southern Tasmanian councils, the State Government and relevant stakeholders to design the transition from the current disparate services to a collaborative and more efficient regional model.
Mayon Dracoulis said money from the levy could be used to fund the working group, as well as supporting other initiatives.
“In the 2024/2025 and 2025/2026 financial years, the State Government will collect more than $20 million annually from councils by way of the waste levy and this is a tax on every ratepayer in the state,” she said
“This will rise to $30 million a year from 2026/2027, and Derwent Valley Council’s payment will rise from $310,000 to $465,000 annually, totalling almost $2 million over the current six-year period, a significant amount for a relatively small council and ratepayer base.
“The real issue is that much of the levy funds appear to go straight to State Treasury and is likely absorbed into the Government’s general revenue.
“For example, the Tasmanian Waste and Recovery Board 2024 High Priority Investment Package allocated just $3.5 million spread amongst some 20 infrastructure projects around the state.
“I’m not opposed to the imposition of the levy as it is everyone’s responsibility to effectively manage the waste we create, but much of the money collected should go to dealing with current and future waste management issues.”
Mayor Dracoulis said this complex and resource-intensive task was increasingly being left to local government to resolve and it demanded technical expertise, significant financial investment and compliance with stringent environmental regulations.
“As well as looking at the establishment of a regional waste management authority for southern Tasmania and similar initiatives for other regions of the state, levy funds could also investigate initiatives such as converting waste to energy, with generating plants already operating successfully overseas in the United Kingdom, Europe, the USA and Japan.
“Australia is now joining this global movement, with Western Australia leading the way developing energy from two waste recovery plants in Perth. The first facility will provide environmentally safe waste management infrastructure while generating enough renewable baseload energy to power 50,000 Perth homes and the second has received backing from the Federal Government’s Australian Renewable Energy Agency and the Clean Energy Finance Corporation.
“This demonstrates that federal funding could be available to supplement the money already collected through the landfill levy. If Tasmania can grasp the opportunity, it would demonstrate how energy recovery can complement the 3Rs (Reduce, Reuse & Recycle) that underpin modern waste management strategies.
“The advantages are obvious. Waste to energy facilities reduce landfill dependency, generate renewable energy and provide a solution for materials that can’t currently be recycled. They create local jobs, both during construction and operation, and can become community assets when thoughtfully and creatively designed like many overseas examples.”
Mayor Dracoulis says while our waste volumes may be smaller, Finnish technology is available and offers modular, prefabricated facilities that can process 150-200 tonnes per day, with the ability to add capacity as needed. These facilities support circular economy principles by maximising energy extraction while minimising emissions.
“It would require a collaborative approach, with local councils working together to provide sufficient feedstock volumes to make such a facility economically viable, and the working group proposed by the Derwent Valley Council could examine this as a priority for the southern region.
“It is time we had a serious discussion about waste to energy in Tasmania. With careful planning and collaboration, we could transform our waste management challenges into an opportunity for environmental and community benefit.
“But such initiatives require the State Government to free up the funds collected through the landfill levy and allocate them where they were intended, to resolve Tasmania’s waste management challenge,” Mayor Dracoulis said.
This is in accord with government statements, including:
- “The introduction of a landfill levy is a long-term approach to improving waste management and resource recovery in Tasmania.
- The landfill levy aims to divert materials that can be reused, repaired, recycled, or made into new materials, away from landfill, helping to find more valuable uses for these materials and reducing landfill.
- Funds raised from the landfill levy are being invested directly into the waste and resource recovery sector, supporting existing industry to reduce waste and creating new jobs and businesses for Tasmanians.”
