New waste rates
Published on 14 June 2022
Video transcript
Our waste management services keep Banyule a clean and tidy place to live however waste costs have increased significantly due to a few things.
The Victorian Government has doubled the landfill levy in the last two years and is requiring councils to recycle more and we no longer send recyclables overseas for processing.
These costs are much more than the cap placed on increasing general rates. About 14% of Banyule's general rates revenue is required to manage waste.
To provide more transparency waste costs are being removed from general rates and two new waste rates are being introduced. A kerbside waste rate and a public waste rate.
This is a fairer system to cover the cost of delivering waste services to the community.
Rateable properties that receive a kerbside collection will be charged the kerbside waste rate. This pays for your rubbish recycling and food waste collection as well as your hard rubbish collections.
All rateable properties will be charged the public waste rate as this pays for waste collection in public places plus street sweeping and managing dumped rubbish.
These rates were introduced on July 1, 2022 and you will see the new charges on your rates notice in August.
Want to do more to help the environment and bring down costs? Less waste to landfill and more recycling is better for the planet and will also help to manage increasing costs, so let's work together to reduce our waste and keep Banyule a beautiful place to live.
Head to banyule.vic.gov.au/WasteRates for more information.
Costs to provide waste and recycling services have risen over the last few years, significantly outpacing costs for any other service and well above inflation.
Rising costs have been absorbed by local governments for many years. Without action, we would need to look at other ways to address this significant financial shortfall, which could result in unwanted cuts to essential community services or important infrastructure.
The overall goal is to reduce waste and make better use of things we use. A circular economy is one that exchanges the typical cycle of make, use, dispose in favor of as much re-use and recycling as possible. The longer materials and resources are in use, the more value is extracted from them. Extending the life of products and materials prevents the over-generation of waste and helps recovers the full value of products.
Public and kerbside waste rates
From 1 July 2022, we will separate the costs of managing waste from general rates and introduce two waste rates: one for kerbside collections and one for public waste services.
The Public Waste Rate will finance waste services in public areas. It will be included on all rateable properties in Banyule, as the entire community benefits from these services:
- street-sweeping
- dumped rubbish collections
- laneway clearance
- litter and refuse collection and disposal
- park litter collection and disposal.
The Kerbside Waste Rate will finance household kerbside collections: rubbish, recycling and FOGO. The kerbside collection service includes:
- 140 litre rubbish bin* (collected every 2nd week from 4 July 2022)
- 240 litre recycling bin (collected every 2nd week from 4 July 2022)
- 120 litre FOGO bin* (collected every week from 4 July 2022).
- 2 hard waste or bundled branches collections each year per property.
*Properties that choose to receive a larger 240 litre rubbish or FOGO bin will be charged an additional fee that appears separately on your rates notice in line with our fees and charges.
The 2 rates will appear on your 2022/2023 rates notice, which you will receive in late July.
Reasons for the separated rates
Waste costs have increased significantly, at a rate well above the rate cap imposed by the Victorian Government that applies to general rates.
There are many reasons for this, including:
- the amount of waste produced in our community has increased
- the cost of managing waste has increased
- the Victorian Government is increasing the landfill levy
- the Victorian Government is requiring councils to recycle more.
Most other Victorian councils have already introduced separate waste rates. Until now, Banyule Council has paid for waste services out of general rates income.
Any increase in general rates is controlled by a rate cap pegged to the Consumer Price Index (CPI). Waste costs have increased well above CPI. About 14% of Banyule’s general rates revenue is now required to manage waste.
By taking waste costs out of general rates, general rates will be reduced and we can adjust the waste rates according to the actual costs of delivering waste services. We will continue to help our community reduce landfill, a major cost to our budget and the environment.
With better recycling and new services such as FOGO (Food organics and garden organics), we believe waste costs will plateau and potentially reduce.
Additional information
Amounts and rates changes
We conducted financial modelling on the new waste rates to determine the likely impact on ratepayers.
With waste costs separated out of general rates, most ratepayers will see a reduction in their general rates, depending on their property valuation.
When you add the reduced general rate and the new waste rates, the modelling showed that on average ratepayers would pay an extra 50 cents per week in their 2022/2023 rates.
General rates
Rises in the general rate are capped by the Victorian Government, in line with the CPI.
In 2022/2023 we will apply the capped rise of 1.75%.
As always, individual ratepayers may see a different rise or fall in their rates. This depends on your property valuation.
Changes to services
We are introducing a FOGO waste recycling service across the entire municipality from 4 July 2022.
This is a kerbside bin collection and will be covered by the Kerbside Waste Rate. We will continue to provide all the other usual kerbside and public waste services.
Community consultation
The waste rates were advertised in the Proposed Budget 2022-2026 and the community was encouraged to have a say.
We also ran a series of community consultations that discussed the new waste rates in context with our proposed Budget, Rating and Revenue Plan, Asset Plan and Financial Plan.
Differences in rates
The waste rates will be set according to property values, in the same way that general rates are set.
This progressive rating method is a more equitable way to pay for the many services we deliver and that are used by everyone, regardless of their income.
It is a common misconception that ratepayers and residents only pay for the services they use; this has never been the case.
Rates are used to fund our facilities and services ranging from parks, roads, footpaths, street trees, planning and building services, emergency management, kindergartens, maternal and child health, aged services, libraries, events and more.
Opting out and hardship consideration
We provide a waste service to every eligible property and everyone benefits from waste services in public areas. Ensuring all households have access to a waste and recycling service is important for the health of everyone. You cannot opt-out from the proposed rates.
Support is available for residents experiencing hardship or disadvantage and special circumstances, such as large households, or those who may create additional waste due to a disability.
Please contact 9490 4222 for more information.
Renting
The waste rates are payable by the property owner who receives rate notices. Renters do not have to pay them.
Private waste service and commercial property
All ratepayers will pay the Public Waste Rate, because the whole community benefits from clean parks and public places.
Only properties that receive a kerbside waste and recycling service will pay the Kerbside Waste Rate.
Multi-unit developments that provide their own domestic waste service and other dwellings that do not receive a Council collection will not pay the Kerbside Waste Rate.
Commercial and industrial properties will only pay the Kerbside Waste Rate if they contain a residence that has a regular kerbside waste service.
Council income
The new rates do not simply increase our income. They only recoup the cost of providing waste and recycling services. If the cost of providing waste and recycling services decreases, the waste rates will decrease.
Waste rates cannot be used to fund other services we provide. Residents can help manage costs by reducing general rubbish and not contaminating your recycling or FOGO bin.
Future changes
The waste rates will recoup the cost of providing waste and recycling services and will be adjusted in the proposed budget each year to reflect changes in the cost of providing waste services.
Victorian Government decisions (for example, the increase to the municipal landfill levy) have a big impact on waste costs, so reducing the amount of waste to landfill helps reduce overall costs. The Victorian Government’s Recycling Victoria plan sets out what services councils must provide, including a new glass recycling service to be introduced by 2027.
As we work towards reducing the amount of waste to landfill and minimising contamination of recycling, we hope that waste costs will level out or reduce.
Recycling bins for glass only
This will not happen for a few years.
The Victorian Government requires all Victorian councils to introduce a household glass recycling collection by 2027, but this will be preceded by a state-wide container deposit scheme being introduced in 2023.
We are waiting until it has more information on how the container deposit scheme will operate before deciding on the details of our glass service.
Adding a new bin is a complex and expensive exercise and we want to ensure we get it right.
Next steps
The new waste rates will apply from the 2022/2023 rates year and you will see these itemised on your rates notice issued in August 2022.