Melbourne Council sparks outrage by introducing $5500 ‘sneaky bin tax’

Lord Mayor Nick Reece has signed off a new permit fee to collect rubbish and it will deliver a hefty hit to already struggling Melbourne CBD businesses.

Lord Mayor Nick Reece and the City of Melbourne have been accused of creating “another sneaky bin tax” by introducing a new $5500 permit fee to collect waste from the council area.

The new $5500 fee was introduced as part of the council’s draft 2025-26 budget, which is open for public consultation, and would require every business that picks up rubbish or recycling within the municipality to pay to be allowed to operate.

Victorian Waste Management Association chief executive Peter Anderson said the industry was furious with Mr Reece and the council for creating a new $5500 tax that businesses would be forced to pay.

“This is absolutely another sneaky bin tax that the City of Melbourne has forced upon our industry with zero consultation,” he said.

“The tax will end up being pushed back on to ratepayers and consumers because our members will be forced to pass it on.

“The City of Melbourne has shown a complete lack of respect to the people who work in our industry – it’s like they’ve snuck up behind us and hit us over the head with a piece of four-by-two.”

Nick Reece launching the council’s budget. Picture: Jason Edwards

It comes after the Herald Sun recently revealed the council had introduced another permit fee of up to $401 for businesses to place their rubbish bins on public land – not including the cost of collection.

Committee for Melbourne chief executive Scott Veenker said that move was “a bin tax by stealth”.

Small businesses in the CBD, particularly restaurants, have expressed their fury at the latest tax impost from Town Hall when many are still recovering from the pandemic.

The Victorian Waste Management Association has members ranging from companies listed on the Australian stock market to small family businesses.

Mr Anderson said the smaller companies would feel this latest “tax grab” the hardest.

“Lots of companies have contracts for two or three years and they can’t renegotiate until that contract ends,” he said.

“This is completely unfair tax grab and just shows how out of touch the Lord Mayor and the City of Melbourne are when it comes to running a business is Melbourne.”

Melbourne Council is introducing a $5500 permit fee to collect waste from the council area. Picture: Ian Currie

This second “sneaky bin tax” comes despite Mr Reece pledging in the election to support businesses.

A media release sent out last October by the Nick for Melbourne campaign team said: “Under Nick’s leadership, Melbourne is committed to keeping taxes as low as possible. Nick will continue reducing red tape and supporting businesses of all sizes, ensuring the city remains a business-friendly environment that encourages growth.”

Mr Anderson said: “No one mentioned a $5500 new tax for our industry during the election”.

A City of Melbourne spokeswoman said more than 1,000 rubbish trucks from 60 different companies enter the city every day.

“Our community has told us these trucks are clogging our streets, creating noise around the clock, and negatively impacting public amenity,” she said.

“We’re proposing new fees for commercial waste operators to encourage more efficient operations and reduce the number of trucks on our roads.”

The spokeswoman said money from the fees would be used to “cover the costs of managing commercial waste and enforcing compliance” and the council was engaging with the waste industry on the new charge.

Originally published as Melbourne Council sparks outrage by introducing $5500 ‘sneaky bin tax’