“A huge lick of money”: Whitehorse to pay $65 million in landfill levy as waste contract extended

Whitehorse Council has had to bite the bullet and renew its waste services contract for another two years despite it costing an additional $65 million over the eight-year life of the contract.

💰 What is the charge? The State Government created its landfill levy in 2011, aiming to discourage the creation of waste which can only be sent to landfill. 

📈 Rising costs: Since it was first introduced in 2011, the cost of the State Government’s landfill levy has increased from $44 per tonne to $169.79 per tonne.

🤝 Joining forces: In 2021, Whitehorse Council signed a joint agreement with 11 other councils to enter into a four-year contract with landfill disposal companies to outline where the rubbish would go, followed by a two-year extension.

• During its meeting last Monday, councillors approved a motion to extend the contract again – from April 2027 to March 2029.

💲 How much will Whitehorse pay? The council has projected it will spend more than $94.5 million over the eight-year life of the contract – more than $65 million via the landfill levy and more than $29 million via the contract.

• Whitehorse residents currently pay a standard charge of $263.25 for waste services.

🫸 Taking its toll: Whitehorse councillor Blair Barker said he believed the landfill levy should be lessened and eventually scrapped as it incentivised people to dump their rubbish illegally and forced the council to pass costs onto ratepayers.

• 🗣️“$65 million would buy us a new swimming pool for Nunawading,” Barker told the Eastern Melburnian. “That’s a huge lick of money that’s being passed onto households.”

⏭️ What’s next: Whitehorse was one of nine councils to sign an agreement to divert 95 percent of landfill waste to a waste-to-energy facility in Gippsland, with the facility set to become operational by 2029.