NT government seeking consultation about introducing a waste levy

A waste levy may soon be introduced in the Northern Territory, with the government acknowledging it could have ‘significant impacts’ on businesses.

UPDATE: THE Territory Government is considering the introduction of a waste levy which could have “significant impacts” on businesses.

The Department of Environment, Parks and Water Security has released a tender for a consultant to develop options available around landfill and waste levies and to advise on the best options for the Territory.

The tender was released Monday and closes January 24.

The tender document says the levy is being considered as part of the Government’s Circular Economy Strategy 2022-2027 which aims to reduce waste and increase reuse and recycling.

The strategy was released last year by Environment Minister Eva Lawler and the public consultation phase will end on January 30.

The consultant tender document says the Territory’s waste represents one per cent, or approximately 0.44m tonnes, of Australia’s overall waste output with 32 per cent coming from construction and demolition, 32 per cent from commercial and industrial waste and 38 per cent municipal solid waste.

The Territory’s recycling rate is 19 per cent compared with 63 per cent nationally.

The document says less than 100 tonnes per year of waste is imported to the Territory, and is largely waste oils destined for reuse at the Mataranka lime facility.

“With the proposed construction of the Tellus Holdings Pty Ltd Chandler hazardous waste facility south of Alice Springs, there is scope for a significant increase in the importation of hazardous waste into the NT within a relatively short period of time,” the tender document says.

“There is also an opportunity for the Territory to increase its economies of some waste types to generate small scale local waste reprocessing facilities. Waste will continue to increase with the development of industry in the NT and increasing population.”

The report says waste levies are currently legislated in Victoria, New South Wales, South Australia, Western Australia and Queensland, which reintroduced a levy in 2019. Tasmania has conducted a Waste Levy Impact Study in anticipation of commencing a levy in July 2022 and the Australian Capital Territory is exploring options to implement waste levies.

“The Northern Territory does not have a levy, or a firm policy on the introduction of a waste levy in the Territory,” the document says.

“A number of large scale projects are seeking to establish in the Territory. The introduction of a waste levy could have significant impacts on business models for some projects. There is a need to provide clarity and certainty to industry regarding government’s position on waste levies.

“The Territory has committed to investigating a waste levy framework suitable to the Territory context. To be of net benefit to the Territory, a levy would need to incentivise material recovery, deter landfilling of waste, and support improvement of waste and recycling infrastructure in the Territory, while addressing the Territory’s unique waste management challenges, particularly in regional and remote areas. A cost-benefit analysis (CBA) on implementation of a waste levy in the NT is required to inform government consideration on the matter.”

NT Chamber of Commerce chief executive Greg Ireland said City of Darwin had significantly increased dumping rates by up to 300 per cent last year and additional increases would be unwelcome.

“This was a significant increase in overheads and certainly a bitter pill to swallow for businesses in terms of waste expenses that certainly weren’t budgeted for which were ultimately passed onto the consumer,” he said.

“We’d be concerned if there was any planned increase for business waste costs at this point of time.

“Territory businesses suffer from volume related issues. Recycling is minimal or very expensive if we are doing it. Costs for transportation has to be trucked down south so my understanding it’s already expensive without additional increases.”

Environment Minister Eva Lawler says the Government wants to reduce overall waste dumped in landfill.

“The Territory Labor Government is working towards reducing the amount of waste we generate and increasing the volume of recycling while protecting the environment.

“We were one of the first jurisdictions to bring in a ban on single-use plastic bags in Australia and shares the public’s concerns about the environmental impacts of single use plastics. In 2020-21, more than one million containers were returned by Territorians to approved depots under the container deposit scheme.

“Recently we released the Draft Circular Economy Strategy for public comment. The draft Strategy is the NT’s plan to implement the National Waste Action Plan, focusing on turning waste into a resource and the creation of local jobs.

“This consultancy tender will look at how we can maximise further waste industries in the Territory, by incentivising materials recovery and reprocessing, deter landfilling of waste and ensure a revenue stream to support the improvement of waste and recycling infrastructure in the Territory which supports local businesses and local jobs.”

A recent independent review described the Queensland levy as a ‘tax grab’

EARLIER: THE NT government may soon introduce a waste levy, as it looks to follow in the footsteps of other states and territories.

A tender released by the Department of Environment, Parks and Water Security on Monday revealed the NT government was seeking consultation about the waste levy options available to the Territory.

“The introduction of a waste levy could have significant impacts on business models for some projects,” the tender documents state.

“There is a need to provide clarity and certainty to industry regarding government’s position on waste levies.

“To be of net benefit to the Territory, a levy would need to incentivise material recovery, deter landfilling of waste, and support improvement of waste and recycling infrastructure in the Territory, while addressing the Territory’s unique waste management challenges, particularly in regional and remote areas.”

The Territory’s waste is largely comprised of construction and demolition, commercial and industrial, and municipal solid waste.

Metal waste extracted from landfill at the Shoal Bay Waste Management Facility. Picture: Che Chorley

The recycling rate across the Territory for these waste streams is 19 per cent, more than three times below the national recycling rate.

The tender follows the release of the government’s draft NT Circular Economy Strategy 2022-2027, which is available for public consultation until January 30, 2022.

The tender documents allude to increasing the importation of waste into the Territory, which is currently minimal.

“With the proposed construction of the Tellus Holdings Pty Ltd Chandler hazardous waste facility south of Alice Springs, there is scope for a significant increase in the importation of hazardous waste into the NT within a relatively short period of time,” the document state.

“There is also an opportunity for the Territory to increase its economies of some waste types to generate small scale local waste reprocessing facilities.”

Waste levies are currently legislated in Victoria, New South Wales, South Australia, Western Australia and Queensland (reintroduced in 2019), while it is anticipated Tasmania will introduce a levy in mid-2022. The ACT is currently “exploring options” to implement waste levies.

The Queensland government’s reintroduction of a waste levy was met with strong opposition, with critics accusing the government of using the levy as a “tax grab”. In late 2021, an independent report revealed the state was falling behind in its rubbish reduction goals.

Originally published as NT government seeking consultation about introducing a waste levy