Terms of reference: Review of the Waste and Environment Levy

The Waste and Environment Levy (the waste levy) is a market-based instrument established under the Protection of the Environment Operations Act 1997 and applied to drive waste avoidance and help resource recovery compete against traditional landfill disposal.

Similar instruments are used by jurisdictions around the world. In Sydney, the levy commenced in 1971 and over time has progressively extended its coverage to areas of expanding population growth.

The levy increases annually by $10 per tonne (plus CPI adjustments) for the next four years. In 2015-16, the levy will be about $120 per tonne in the Sydney, Hunter, Central Coast, Illawarra and Shoalhaven regions in today’s dollars.

The review will call for, and consider submissions from stakeholders.

Stakeholders have identified some general issues associated with the operation of the waste levy and the use of waste and environment program funds enabled by the levy. These include:

• the potential for funding new waste infrastructure to improve resource recovery of household and commercial waste
• the quantity, distribution methods, and use of funds for local government resource recovery and environment programs
• impacts of the levy on competitiveness and resource recovery outcomes of recycling operations that operate in internationally traded sectors
• the use of funds to facilitate recycling of commercial and industrial waste and to combat illegal dumping, particularly of asbestos waste.

Stakeholder submissions will be published on the OEH website on receipt (unless otherwise marked as confidential). The review’s output reports will be prepared for consideration by the NSW Government. The Government will provide a copy of the review report alongside its formal response.

The review report is to be completed and provided to the Government for its consideration within five months of the announcement of the review.

Impact on the recycling industry

1. Examine any evidence presented that the application of the levy to recycling sectors is impacting on competitiveness or the attainment of maximum economically efficient recycling.
2. Review the effectiveness of the levy on recycling across different streams (i.e. Municipal Solid Waste, Commercial and Industrial Waste, and Construction and Demolition Waste) and make recommendations for improvement, as necessary.

Impact on household waste

3. Analyse data and evidence presented and provide advice on the impact of the levy on households and the effectiveness of the levy in supporting greater resource recovery from household waste.

Funding arrangements

4. Review and report on the existing funding arrangements available to local councils and industry for waste and resource recovery initiatives, programs, infrastructure and combating illegal dumping.
5. Review and make recommendations on ways to improve the effectiveness of the levy in supporting investment in and the financial viability of resource recovery infrastructure.
6. Review the effectiveness of the Waste and Sustainability Improvement Program (WaSIP) delivery and identify funding priorities for waste and resource recovery initiatives, programs and infrastructure.

Review impact of illegal dumping

7. Assess any evidence that links the levy to an increase in illegal dumping in NSW.
8. Assess potential approaches for helping combat illegal dumping, particularly of asbestos waste.

Other matters

9. Make other recommendations as appropriate.