Solid Waste Levy increase — could it send your budget to the tip?
19 June 2019
By now, most of our readers will have learned about an aspect of the State Budget which will materially affect every council in the State – a significant increase in the Solid Waste Levy, imposed under the Environment Protection Act 19931.
Currently, the metropolitan levy is $100 per tonne of waste disposed to landfill. Prior to the State Budget being handed down, the estimates issued by the Government were that it would rise to $103 for the next financial year. Most councils have used this estimate in the formulation of their draft annual business plan and budget, long term financial plan and proposed rates declaration, which would, in most if not all cases, have been subject to public consultation by now.
However, the budget includes an increase of the levy to $110 per tonne from 1 July this year, rising again to $140 per tonne on 1 January 2020. Even assuming an even distribution of waste disposal over the year, this equates to more than a 20% increase in this cost to councils over and above the estimated increase.
As is clearly the case, this increase is causing consternation across the State, particularly in terms of the impact that it will have on councils’ prepared budgets and proposed rates. Concerns are also being expressed by councils wishing to ensure that if these increases are to be reflected in their revenue documentation that the appropriate processes are followed where there is to be an adjustment to any of their financial plans and/or rating proposals.
Of course, the proposed increase to the levy must still receive the support of the Parliament – which is never certain. Having said that, if councils wish to revise their annual business plan/budget or their rate proposals, they will need to ensure that the processes set out in the Local Government Act 1999 are adhered to and that relevant considerations are taken into account in finalising the documents for the consequent adoptions and/or declaration processes.
If you have any questions in relation to any of the issues raised in this Alert, please contact Michael Kelledy on 8113 7103 or mkelledy@kelledyjones.com.au.