Struggling charities plead for state government help on waste levy

Victorian charities fear they may have to cut vital services or shut down without urgent state government intervention.

The state government’s Municipal and Industrial Landfill Levy is set to increase in 2023.

Charities are warning they will be forced to slash vital services without urgent state government intervention.

A week after the Victorian government inked a $15m deal with Netball Australia, a coalition of desperate charities say they need just a tenth of that to avoid shutting down.

Without the $1.5m reprieve, they have warned they will be unable to offset the government’s Municipal and Industrial Landfill Levy which is set to increase in 2023.

Charitable Recycling Australia chief Omer Soker said the move would impose an extra $1.5m-a-year cost on charities they could not afford.

He said the increase would threaten the viability of many charities already struggling because of severe volunteer shortages.

The government boosted funding to charities last year to offset the levy, but Mr Soker said repeated attempts to secure an ongoing commitment had been futile.

“It’s just wrong. Victoria is the only state that doesn’t want to protect charities from these levies.”

“They’ve got $1.1bn invested in their sustainability fund and they’re still looking to hit charities for a measly $1.5m.

The move to impose an extra $1.5m-a-year cost on charities is ‘just wrong’, charities say. Picture: Renae Droop

“They’ve got the cash. It’s a tiny, tiny amount. It doesn’t make sense, I don’t know why they want to hurt charities.”

Victorian charities spend close to $4m a year on waste management to clear unwanted donated items and manage illegal dumping.

A government relief fund helps cover the costs of the levy, but Mr Soker said without more funding charities would be under unprecedented strain.

“Victorian charity shops divert 158,000 tonnes from landfill and generate $132 million for social good, and if the Victorian Government imposes these extra costs on charities, all it will do is reduce their capacity,” Mr Soker said.

“It will mean an increase in waste going to landfill and a reduction in welfare services for Victorians in need. By hurting charities, the Victorian Government will also hurt the environment and community.

“We don’t want the waste dumped on us. We didn’t create the waste. We don’t own it. Why is Victoria trying to tax us on it?”

A government spokesman said $8.6m had been provided since 2014 to support the charitable recycling sector.

She said a decision on whether the program is continued would be made by the next government.