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Waste Disposal Levy FAQs

What is subject to the levy?

Any waste that is disposed of at a waste disposal facility as defined under the Waste Minimisation Act 2008 (for example, a landfill) is subject to the levy.

Who is responsible for paying the levy?

Disposal facility operators must pay the levy based on the weight of material they dispose of at their facility, but they may pass this cost on to the waste producer, for example households and businesses. 

Why was the waste levy set at $10 per tonne?

The primary purpose of the levy is to raise revenue for waste minimisation projects. At $10 per tonne (plus GST), it will provide revenue to make progress on projects that reduce waste. It was decided to take a conservative approach to setting the levy amount so it:

  • is less likely to result in behaviour such as illegal dumping
  • reduces the impact on businesses and households
  • reduces the risk of inefficient spending of the revenue
  • allows the effects, both positive and negative, resulting from the levy to be assessed.

Will the levy rate of $10 change?

The Minister for the Environment will regularly review the effectiveness and rate of the levy to ensure that it is generating an appropriate level of revenue and recognising the costs of disposal on society, the environment, and the economy, while being mindful of its effect on unwanted behaviours such as illegal dumping.

The first review of the levy will take place in 2011. If it is decided that the cost of the levy needs to be increased, this could be achieved in stages.

How will the levy funding be used?

Funding will be available for initiatives that will help more New Zealanders to reduce, reuse and recycle.

Half of the total money generated by the levy will go to territorial authorities, on a per head of population basis, to assist them with minimising waste in their area. 
The remaining levy money (minus administration costs) will be put into a waste minimisation fund, to be used to fund further waste minimisation activities around New Zealand. 

What will the Ministry do with the reporting information being collected?

The reporting information collected from disposal facilities will be used to calculate the amount of levy money to be paid by each facility, and to provide statistics on waste that the Ministry can use to inform future policy development and environmental reporting. Examples of these Ministry reports include State of the Environment, and the New Zealand Waste Strategy. 

The Ministry considers information collected from individual sites to be confidential and intends only to make aggregated data available to the public.

If this is a national levy, why do different facilities charge different amounts for waste?

While disposal facilities are charged a common levy rate of $10 per tonne of material disposed at landfill by the Ministry, the total price you are charged by the facility also includes their own costs to run the facility, which are likely to be different at each facility.

Is the levy likely to cause an increase illegal dumping?

At $10 per tonne, the levy is unlikely to encourage an increase in illegal dumping. 

Whilst illegal dumping can be driven by the high cost of disposal, other factors such as lack of enforcement, limited educational resources and undesirable consumer behaviour can also contribute to this behaviour. Experience from similar schemes imposed at a regional level has found there is little evidence to show that illegal dumping rises directly as a result of increased disposal charges.

How can I minimise the cost of the levy to my business or household?

Those who continue to dispose of waste at landfill will pay more. Those who reduce waste generated, sort and recover waste will be able to avoid the extra cost, and effectively be rewarded for good practice.

Many companies already divert over 50 percent of their waste from landfill. There are also a number of companies that divert over 70 percent of their waste for beneficial reuse. These companies are not only operating in an environmentally sound way, but are saving themselves a lot of money at the same time.

You can minimise the cost of the levy to your household by reducing the amount of rubbish your household produces – try reusing or donating old products, or choosing products with little or no packaging. By recycling and composting as much of your waste as possible you can save on the cost of council rubbish bags.

Do other countries have a waste levy?

Waste levies are used in a variety of other countries including Australia and several countries in Europe.

There are a number of different approaches that have been taken to implementing a levy, but most are seeking similar outcomes that the New Zealand waste disposal levy hopes to achieve. Some key differences include different levy rates based on waste type and location, and increasing levy rates annually until a fixed price cap is reached.

The UK, Ireland and several regions within Australia all have schemes similar to that being implemented in New Zealand.

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Last updated: 22 September 2009