ACCC grants interim authorisation to allow Battery Stewardship Scheme to continue with limited levy and rebate adjustments.
The ACCC has granted interim authorisation with a condition to the Battery Stewardship Council (BSC) to continue operating the Battery Stewardship Scheme with a limited adjustment of the Scheme's levy and rebates.
The BSC was formed in 2018 with the primary goal of establishing a Battery Stewardship Scheme to significantly increase battery collections and recycling in Australia.
In September 2020, the ACCC granted authorisation to the BSC to establish and operate a national scheme which manages end-of-life batteries. Under the Scheme, the BSC imposes a weight-based levy on imported batteries at a rate of 4 cents per equivalent battery unit.
By granting interim authorisation, the ACCC will allow the BSC to adjust the levy to take account of changes in the Consumer Price Index since the Scheme's commencement.
"The Scheme results in significant environmental benefits by diverting the number of batteries headed for landfill, as well as raising public awareness around battery disposal and re-use," ACCC Deputy Chair Mick Keogh said.
"This interim authorisation is needed to ensure the Scheme's financial viability, given that costs have risen since its inception."
Under the interim authorisation, the BSC will also be able to progress the development of new levy arrangements involving an eco-modulated levy to be applied based on battery type. This aims to provide sufficient funding to ensure that rebates provided to participants in the Scheme reflect the actual costs of safe collection and sorting, and to reward processing performance.
"Granting interim authorisation provides the BSC with financial stability, enabling it to maintain the Battery Stewardship Scheme while the ACCC completes its assessment of the proposed broader levy and rebate arrangements," Mr Keogh said.
In order to address the continued risk of harm from consumers storing button batteries, the ACCC has imposed a condition that the BSC continue implementing its Button Battery Safety Strategy.
"We acknowledge the broader issues raised by interested parties in relation to the Scheme's performance so far as well as the pathway forward," Mr Keogh said.
"We will investigate these issues further in our draft determination."
The interim authorisation will take effect from 4 June 2025 and will remain in place until the ACCC issues its final determination, unless it is revoked or amended by the ACCC.
The ACCC is continuing to assess the BSC's substantive application, which includes proposals to broaden the scope of the Scheme and further develop levy and rebate mechanisms. Stakeholders will have a further opportunity to comment on the ACCC's draft determination.
More information, including the ACCC's reason for decision, is available online on the ACCC's public register at Battery Stewardship Council.
Note
ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act (CCA).
Section 91 of the CCA allows the ACCC to grant interim authorisation when it considers it is appropriate and in the public benefit. This allows the parties to engage in proposed conduct while the ACCC is considering the merits of the substantive CCA authorisation application.
The ACCC may review a decision on interim authorisation at any time, including in response to feedback raised following interim authorisation.
Background
Product stewardship is an environmental management strategy that means whoever designs, produces, sells or uses a product takes responsibility for minimising that product's environmental impact through all of the stages of its life cycle.
The BSC is a not-for-profit entity established to oversee the Battery Stewardship Scheme, which promotes the safe collection, recycling, and disposal of end-of-life batteries. The scheme does not cover automotive lead-acid batteries or batteries already included in other recycling programs.
The BSC first sought authorisation in 2020 for a static, weight-based levy which was charged on imported batteries at a rate of 4 cents per equivalent battery unit. The weight-based charge on imported batteries (or equivalent fee to be paid by members of the scheme) is to be passed on to consumers as a visible levy and used to fund the scheme and a rebate system for service providers responsible for the battery's collection, sorting and processing.
That authorisation is due to expire on 26 September 2025.
