What are typical landfill levy charges in Australia and how do they impact cost?

Landfill levies are one of the biggest drivers of rising waste costs in Australia — but most businesses don’t realise how much of their general waste bill is actually levy, not service.

If your business operates across multiple states, the impact is even greater. Levy rates vary significantly by region, and the way these charges are bundled into waste invoices can make it difficult to see where your money is really going.

This edition breaks down typical levy rates nationwide, what they mean for your budget, and how multi-site businesses can reduce their exposure.

What Is a Landfill Levy and Why Does It Matter?

A landfill levy is a government-mandated charge applied to every tonne of waste sent to landfill.
It exists to discourage landfill disposal and encourage recycling, resource recovery and more sustainable practices.

For businesses, this means:

General waste is the most expensive stream
Any contamination that pushes recycling into general waste attracts full levy charges
Levy increases flow directly into your waste invoices
Multi-site operators may pay significantly different rates depending on location

Put simply: the more general waste your business produces, the more levy you pay.

How Landfill Levies Affect Your Waste Costs

Landfill levy is built into every general waste invoice. It is rarely itemised, which means businesses often don’t realise how much they are paying.

A typical general waste bill looks like:

Collection and transport
Disposal fee
Landfill levy
Contractor margin

Depending on the state, levy can represent:

30% to over 60% of your total general waste cost.

That means even if service frequency doesn’t change, your cost can still rise year after year as levies increase.

Hidden Cost Risks Businesses Should Watch

Levy charges are predictable. The risks surrounding them are not.

Key risks include:

1. Contamination
When recycling bins are contaminated, they are reclassified as general waste — attracting full levy fees.

2. Over-serviced general waste
If your general waste is collected more often than needed, levy costs multiply.

3. Poor visibility over tonnages
If your provider doesn’t give accurate reporting, your business may be paying levy on avoidable waste.

4. Multi-state complexity
Different levy rates across regions can distort budget planning, often without transparency.

These risks quietly inflate waste budgets every year.

How to Reduce Your Levy Exposure

You cannot avoid the levy — but you can reduce how much you generate.

Practical actions that deliver immediate impact:

1. Reduce general waste volume

Right-size bins and collections based on actual need, not fixed schedules.

2. Increase recycling streams

Cardboard, organics, soft plastics (where available), metals, film, timber — all attract little to no levy.

3. Standardise signage and bin placement

Lower contamination = fewer reclassifications = lower levy.

4. Educate staff

Quick toolbox talks and simple visual signage consistently lower general waste reliance.

5. Request transparent reporting

You should be able to see general waste tonnage, contamination events, and levy exposure monthly.

6. Use a broker model rather than a single hauler

A broker (like us) can shift material into lower-cost streams, re-design services, and use multiple partners without landfill bias.

These strategies reduce cost and improve sustainability outcomes.

How Nationwide Waste Solutions Helps Businesses Manage Levy Costs

Nationwide supports multi-site companies by providing:

Clear visibility of how much levy your business is actually paying
Reporting that breaks down general vs recycling tonnages
Service redesign to reduce general waste and shift material into lower-cost streams
Contamination reduction programs
Standardised bin setups across all locations
Monthly dashboards showing levy exposure, costs, and diversion
No landfill ownership — meaning no financial incentive to bury your waste

Our customers consistently achieve:

Lower general waste volume
Higher diversion
Reduced contamination
More predictable budgets

And that means less levy and lower overall waste spend.

Ready for a Landfill Levy Cost Review?

If you want to understand how levy charges are impacting your waste spend, we can help.
We’ll review your current services, break down your levy exposure, and show you where the real savings opportunities are.

Contact us today!