Managing waste in a growing city like Sydney is no small task and the NSW waste levy plays a key role in making sure that waste is handled responsibly. Introduced to encourage recycling and reduce the amount of rubbish sent to landfill, the levy adds a cost to waste disposal, creating a financial incentive for businesses and households to adopt more sustainable waste practices.
But understanding how the waste levy works—and what it means for your day-to-day operations or household expenses—can be confusing. From how the rates are set to their impact on recycling and disposal costs, this article will break down everything you need to know about navigating Sydney’s waste levy.
At Sydney City Rubbish, we try to ensure our readers and clients are armed with all the necessary information. Whether you’re running a construction business, managing a commercial site, or simply trying to reduce your household waste bill, being informed can help you make smarter, more cost-effective waste decisions.
Speak to our waste management experts today.
What is the NSW waste levy, and how does it work?
The NSW waste levy is a government charge designed to reduce landfill use and encourage recycling by making waste disposal more expensive. By increasing the cost of sending waste to landfill, the levy creates a financial incentive to recover and recycle materials instead.
Recycling helps conserve natural resources, protect the environment, and reduce the harm caused by landfill, littering, and illegal dumping. However, because recycling involves additional sorting and processing, it can be more costly than disposal. The waste levy helps close this cost gap, making recycling a more viable option.
First introduced in Sydney in 1971, the levy now applies along much of the NSW coast, from Shoalhaven to the Tweed. EPA-licensed waste facilities in two designated zones—the Metropolitan Levy Area and the Regional Levy Area—must pay the levy on waste received. Rates differ between regions and are adjusted annually in line with the Consumer Price Index (CPI).
Can adjusting the waste levy improve recycling rates?
Setting the waste levy at the right level is key to encouraging recycling and reducing landfill use. When the cost of disposal increases, recycling becomes a more competitive and attractive option.
Currently, NSW waste levy rates are adjusted annually in line with the Consumer Price Index (CPI). However, between 2009 and 2016, rates rose by an additional $10 per tonne each year, on top of CPI increases. Independent analysis by Marsden Jacob Associates found that these above-inflation increases significantly reduced the amount of waste going to landfill—particularly construction and demolition (C&D) waste, as well as commercial, industrial (C&I), and municipal solid waste (MSW) in the Metropolitan Levy Area.
By 2016, the levy was helping divert around 3 million tonnes of waste from landfill each year. Since then, CPI-linked adjustments have maintained these gains, but recycling rates have plateaued.
As part of an ongoing review, the NSW Government is now considering whether increasing levy rates beyond inflation once again could drive further improvements in recycling and resource recovery across the state.
How does the waste levy affect businesses and households in Sydney?
The waste levy directly influences the cost of waste disposal for both businesses and households across Sydney. As landfill fees increase, so too does the price of general waste collection services. This makes it more costly to dispose of unsorted waste, encouraging people to separate recyclable materials and reduce the volume they send to landfill.
For businesses—particularly those in construction, hospitality, retail, and manufacturing—the levy can significantly impact operational costs. Efficient waste management and improved recycling practices not only help reduce environmental impact but can also cut disposal expenses in the long run.
Households may notice higher council rates or waste service charges, especially if large volumes of general waste are being collected. However, by recycling more and using green or hard waste services wisely, households can help manage costs while supporting a cleaner Sydney.
Ultimately, the waste levy is designed to encourage smarter, more sustainable waste habits across the community.
Does the waste levy have an impact on rubbish removal services?
Yes, the waste levy has a significant impact on how rubbish removal services operate—and what they charge. Since the levy increases the cost of sending waste to landfill, removal companies must account for these additional expenses when setting their prices. The more landfill-bound waste a service handles, the higher the disposal costs, which are often passed on to customers.
This creates a strong incentive for rubbish removal providers to adopt more sustainable practices. Many services now focus on sorting loads to divert recyclable materials away from landfill, helping to lower their own costs and reduce environmental impact. For customers, this means that properly separating waste before collection and choosing eco-conscious providers can help minimise fees.
Ultimately, the waste levy is pushing the entire waste industry—rubbish removal services included—towards smarter, more efficient, and environmentally responsible waste management.
Speak to our team today about affordable rubbish removal services in Sydney
Need assistance from an expert rubbish removal company? At Sydney City Rubbish, we offer efficient and affordable junk removal services for businesses and households in the Sydney CBD and surrounding areas. If you need to get rid of a large volume of waste, or just need a general declutter, we’re here to help.
