Waste levy decision to cause $200m hole in Budget
A levy imposed by the State Government is set to leave an almost $200 million hole in the Budget. But the Treasurer sees the drop as a “success”. Here’s why:
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THE State Government’s waste levy is set to leave an almost $200 million hole in the Budget as fewer southerners dump their rubbish in the Sunshine State.
The major revenue shortfall follows a massive 60 per cent reduction in the amount of waste entering Queensland from NSW, with hundreds of thousands of fewer tonnes coming across the border.
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A levy hike of $5 per tonne was expected to come into effect from Wednesday, but new laws will defer the increase until January 1 to give businesses relief amid the coronavirus pandemic.
The Courier-Mail can reveal the levy has so far collected about $243 million this financial year, which the Government says is almost $200 million less than it was forecast to raise.
Treasurer Cameron Dick attributed the shortfall to the “success” of the levy in diverting waste away from landfill and into recycling.
“Importantly, our plan to increase jobs and investment in recycling industries is working,” he said.
“The amount of waste coming into Queensland from NSW has fallen by about 200,000 tonnes in the first nine months of the 2019-20 financial year since the waste levy was introduced.
“That is a 60 per cent decline on the previous year.”
Mr Dick said the Government understood businesses were hurting due to the pandemic, which was why they decided to defer a planned levy hike that would have increased the levy by $5 per tonne from tomorrow.
The move is expected to cost the Budget about $10 million over the next six months.
“Other states including NSW and Victoria have taken similar steps,” Mr Dick said.
“The Palaszczuk Government’s decision will save businesses around $10 million in fees over the next six months, while also ensuring Queensland does not once again become the dumping ground for southern states.”
The Treasurer said the economic downturn caused by COVID-19 had led to a reduction in landfill volumes which made it “impossible to accurately forecast future trends”.
The levy currently costs between $75 and $155 a tonne depending on the type of rubbish involved.