The Government has confirmed its proposals originally announced in July last year regarding the waste levy increase and expansion.

This means that from 1 July 2021, the waste levy will increase from $10 per tonne to $20 per tonne for municipal (Class 1) landfills. This rate will continue to progressively increase annually, reaching $60 per tonne on 1 July 2024. 

This decision also reaffirms the timing of expansion of the waste levy to additional classes of landfill: 

  • Construction and demolition (Class 2) landfills will have the levy applied at a rate of $20 per tonne from July 2022, increasing to $30 per tonne on 1 July 2024.
  • Managed fill (Class 3) and controlled fill (Class 4) will both have the levy applied at a rate of $10 per tonne on 1 July 2023.                                                                                                                              

It is projected that the increased and expanded levy will bring in revenue of approximately $276 million per annum by the end of the 2024/25 financial year – a significant increase on the current revenue of approximately $36 million per annum.
 
The Government will invest this revenue into waste minimisation projects and initiatives to continue a transition towards a circular economy for Aotearoa New Zealand. Half of the levy revenue will continue to be distributed to territorial authorities for waste minimisation work. 

The 1 July 2021 changes will mostly impact facilities already subject to the levy. However, some facilities may now meet the definition of a class 1 facility. It will work with territorial authorities and undertake monitoring and compliance activities to help identify any additional sites that should pay the levy.

The Ministry for the Environment (MfE) will continue to administer the collection of the waste disposal levy as it expands through the Online Waste Levy System, as well as undertaking compliance, monitoring and enforcement activities in relation to compliance with the payment of the waste levy and record keeping requirements.
 
The detail of the legal requirements for operators will be outlined in the regulations when these are gazetted. It expects this will happen in the next month.

For more information, please email wastelevy@mfe.govt.nz