Budget 2019: Surprise Solid Waste Levy rise to force councils to pay millions more for dumping
Councils across South Australia are hastily revising budgets — with most looking at higher rate increases — after being hit with an unexpected increase in a charge to dump waste at landfills.
Local
Don't miss out on the headlines from Local. Followed categories will be added to My News.
- State Budget 2019: Your five-minute guide
- The Budget had a clear focus on housing and infrastructure
- What the State Budget means for your suburb
Rates are expected to rise further across South Australia in the wake of the State Government’s unexpected increase on waste dumping fees.
Councils across South Australia are hastily revising budgets — with most looking at higher rate increases — after being hit with an unexpected rise in a charge to dump waste at landfills.
One furious mayor said increasing the levy was “hypocrisy writ large” by a government which wanted to introduce rate capping.
The Solid Waste Levy will rise to $110 per tonne next month and then to $140 from January, costing councils an extra $8.5 million — a figure not factored into annual business plans.
The increase, announced in the State Budget, caught councils by surprise, with mayors saying most of their plans — already sent out for public feedback — were about to be approved by elected members.
The plans are now being revised by executives across metropolitan and regional councils as they try to work out how they will cover the new impost.
Most are looking at higher rate increases, cuts to services, cancellation of projects or using surpluses to cover the higher bill to dump rubbish.
Tea Tree Gully Council already has called a special meeting for Thursday night to vote for a higher rate increase to cover the extra $1 million over two years it will have to pay.
Salisbury, Playford and Gawler councils will pay a total extra of $1.4 million, despite owning and operating a recycling processing plant at Edinburgh.
The Solid Waste Levy has increased in recent years as governments have tried to reduce the amount of waste being sent to landfills, most of which are privately owned and operated.
Councils have responded by aggressively pursuing recycling, which not only encourages the circular economy but reduces the weight of red and blue lid bins, the contents of which are sent to landfills.
The levy is collected by the Environment Protection Authority and paid into the Green Industry Fund, which recently has been used to fund responses to the China National Sword recycling crisis.
Local Government Association president Sam Telfer said it was “an outrage the State Government has launched this stealth attack on ratepayers”.
“We’ll be asking councils what this unjust levy hike means for their rates and making sure that every ratepayer is aware of every dollar that this disappointing decision is costing them,” he said.
Mr Telfer said the Government should be working with councils to make waste and recycling more affordable “instead of adding to the cost-of-living of all South Australians”.
Playford mayor Glenn Docherty said it was “extremely disappointing” the waste levy increase had been announced without any warning to councils as they decided their budgets for the next financial year.
“We have to consult with the community on our budget and proposed rate increase and without any consultation we are hit with this huge increase from the Government,” he said.
“This increase is disproportionately disadvantageous to growth areas like Playford which puts hugestrain on budgets which are already stressed by trying to fill gaps in infrastructure already left by state governments in our community.”
Prospect mayor David O’Loughlin said increasing the levy was “hypocrisy writ large” by a government which wanted to introduce rate capping.
“Really, this is the final nail in the coffin of their hypocritical, bogus rate capping campaign,” he said.
“It is dead and buried. Mums and dads are propping up this excuse of a surplus.
“It is a dodgy surplus propped up on a rubbish tax.”
Mr O’Loughlin wanted to know if the State Government had sought advice from the Essential Services Commission about the waste levy increase.
“We have worked hard to keep our rate increase around 2.75 per cent, we have spent $18 million on a new civic centre, not one cent came from the State Government and we are hit with this.
“It will undo everything we have done with our plans and attempts to be reasonable and respectful of our ratepayers.”
Mr O’Loughlin said the State Government “had no respect” for the council’s long term budget planning or its ratepayers.
Gawler mayor Karen Redman said the higher levy would cost her council $125,000 which would have to be found from within its existing budget.
“Across the three northern suburbs we are looking at $1.4 million across three councils,” she said.
“We are not rich communities, $1.4 million is a bloody lot of money.”
Ms Redman said councils had only three options — increase rates, cut services and projects or use money from surpluses, if they had them.
“We have all tried to keep our rate increases to a minimum, some councils were not going to increase them at all,” she said.
“That’s not going to happen now.
“We now have to work out where we are going to get the money from. Do we cut news footpaths, a sporting project or do we get rid out of our surplus.”
Marion mayor Kris Hanna said the waste levy increase would cost his council an extra $404,000 in the next financial year, with ongoing annual increases of $600,000.
“That’s a significant impact on our budget,” he said.
“We had settled on a 1.8 per cent average rate rise, one of the lowest rises among South Australian councils.
“If we want to retain that we will have to cut something.”
Mitcham mayor Heather Holmes-Ross said she was “absolutely blown away” by the levy increase as it had come by surprise.
“The State Government knew all councils were deciding their budgets and had gone out for community consultation with their proposed rate increases,” she said.
“To hit us with this now is pretty disappointing, I must say.”
Treasurer Rob Lucas defended the lack of consultation with councils before the levy increase was announced, saying there were many decisions in State Budgets which were implemented without consultation.
“You don’t go out and consult with councils to say how much would like us to increase the levy, they’ll say nothing,” he told ABC Adelaide.
“We know what the position of the councils is going to be. You don’t go into consultation beforehand to say we’re going to actually tax you more on this.”
Mr Lucas said the previous Labor government had increased the levy from $5 to $100 over a period of time.
“We know what the council’s views were,” he said.
“The way we justify this is, this is the way we’re going to save West Beach and Henley Beach.”
According to the State Government, if councils increased rates to pay for the higher waste levy without making any improvements to waste management, the average for each South Australian household would be an extra $8 for this year, rising to $15 in coming years.
‘Beyond words’: Motorcyclist killed in collision identified as father
The 22-year-old man who died in a devastating motorcycle crash on Sunday in Hope Valley has been remembered by his loving family and friends.
‘He built an empire’: Adelaide night-life legend’s legacy remembered
The man who brought big names such as Calvin Harris, The Rudimentals and Rihanna to Adelaide will be remembered for how he transformed the city’s music scene.