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Dedicated waste minimisation funding

In September 2007, the government has released a Cabinet paper with its preferred option to secure funding for waste minimisation initiatives. The government proposes to introduce a national waste levy on all waste going to landfill.

What does the Cabinet paper say about a levy?

  • A levy on waste disposal sends a clear signal about the way New Zealand views waste, and shifts the cost away from those who take responsible action to reduce waste, and onto those who do not.
  • It is proposed that a national waste levy applies to all waste disposed at landfill.
  • The levy is initially set at $10 per tonne excluding GST. This is likely to generate $31 million per year for waste minimisation improvements.
  • Operators of disposal facilities will have to pay the levy based on the weight of material disposed at the facility.
  • The levy will be collected by the Ministry for the Environment from disposal facility operators.
  • Operators of waste disposal facilities can choose to pass the cost of the levy on to their customers (households and businesses). 
  • Operators of a waste disposal facility have to report to the Ministry for the Environment on the amount of waste disposed at the facility.
  • Fifty percent of the money that is generated by the levy will go to local authorities, on a population basis, so that they can improve waste minimisation in their area.
  • The remaining 50 percent (minus administration costs) of the money will be put into a contestable fund. Councils, communities, businesses and other organisations can apply for funding from this fund to set up new waste minimisation activities. 
  • The Minister for the Environment will review the levy regularly to see whether it is effective and adequate.

See questions and answers webpage for information on the national waste levy.