City of Melbourne bins laiden with Lord Mayor Nick Reece’s ‘new tax’

A new bin tax is worming its way towards Melbourne’s CBD businesses, stinging them hundreds of dollars for the privilege of using their bins.

Hundreds of CBD businesses are set to be slugged up to $401 by Town Hall in a move that has been labelled “a bin tax by stealth”. Picture: Supplied

Hundreds of CBD businesses are set to be slugged up to $401 by Town Hall in a move that has been labelled “a bin tax by stealth”.

A new permit fee was introduced in the City of Melbourne’s draft budget for 2025-26 that will require businesses to pay for the use of public land that a commercial bin sits on.

The fee will range between $46 per year and $401 annually, depending on the size of the bin.

Committee for Melbourne Chief Executive Scott Veenker slammed the move as a money grab and another way Town Hall was making life harder for city business owners.

“This is a bin tax by stealth,” he said.

“City businesses already pay waste charges, and they rightly expect the simple act of placing a bin on kerb to be included in that – not subject to an additional permit fee of up to $401.

“If we want a thriving city, we must make it easier, not harder, for all businesses to operate.”

The new bin tax comes despite Lord Mayor Nick Reece pledging in the election to support businesses.

The new bin tax comes despite Lord Mayor Nick Reece pledging in the election to support businesses. Picture: Jason Edwards

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.”

A CBD cafe owner, who wished to remain anonymous for fear of Town Hall targeting her business, said: “We aren’t rich people, we work hard for every dollar we make.

“How can you turn a free permit into something that costs hundreds of dollars?

“This was done without any warning and no one who runs a cafe or restaurant will think this is a good idea.

“Nick Reece has no idea how hard it is to run a business in the City of Melbourne and he is making it even harder.”

A council spokeswoman said the new charge would “help deliver more efficient and cost-effective waste infrastructure – such as shared compactors and recycling hubs.”

“Currently, around 5 per cent of businesses leave bins in public spaces permanently – at no cost – while others pay to use outdoor areas for purposes like dining,” she said.

“Businesses have told us they want to expand into outdoor dining, but the smell and appearance of nearby bins are a barrier.”

“Introducing a fee would allow us to invest in better ways to keep bins and trucks off our streets.

“We’re proactively contacting permit holders to gather their feedback as part of the draft Budget process.”