Do some simple mathematics and you will realise that waste operators are about to cop a bill for at least $68.4M this coming fiscal year.
In the 2016-17 year, 912,000 metric tonnes of waste was transported from other states to QLD to dump. As QLD did not have a waste levy, it made a lot of financial sense to waste operators. Especially when compared to other states such as NSW where the waste levy starts at $141.20 per tonne.
QLD is about to introduce a waste levy of $75 per tonne for all interstate waste. Multiply that by 912,000 tonnes and this will cost waste operators $69.4M.
They, will of course, pass this on to customers. More so those from NSW where it made financial sense to shift the waste across the border.
We predict that the impact to waste customers in NSW and other states will be higher than this. To dump this quantity of waste in NSW would cost a whopping $128.7M.
Apart from environmental reasons, there are now compelling financial reasons to look harder at waste. This includes reducing waste, alternate disposal methods and reducing weight of waste.
We have been working with many businesses on this problem. The results have been overwhelming. Both from a financial standpoint but also from a gross reduction in waste. Which of course delivers a triple bottom line benefit.
All states are also about to increase environmental levies for waste to landfill. All businesses need to keep a firm eye on supplier increases over the coming month.
Waste costs to soar as recycling to create a further problem
What will exacerbate this problem is the announcement from Malaysia this week. They intend to return contaminated plastic waste to countries that have shipped it to them. There has been a marked increase in shipments of waste to SE-Asian nations. Especially since China started turning back waste under the white sword policy.
Australia’s recycling industry cannot cope with the demand it has. This ongoing problem will further impact waste costs in Australia. As facilities fill up with recyclables – the cost for space will lead to cost increases for business.
Time to Act
If you are a significant generator of waste, there is no further opportunity to rest of your laurels. Price per tonne thinking to reduce expense is delivering limited or zero return anymore.
As waste costs continue to rise. Recycling becomes less commercially viable. And, businesses fail to act on reducing waste – this will be an ongoing spiral of cost increases. Reducing waste is the responsibility of all businesses. And for those with a sustainability plan, no longer something that can be ignored.
If you want to do something about it then talk to us. We can work with you and our supplier Wasteflex to look at managing your waste needs. Both for immediate and future benefit.