To provide certainty to industry and councils, the NSW Government has announced waste levy rates will not rise above the Consumer Price Index in the 2026-27 financial year.
The NSW Government is continuing its detailed consideration of options to reform the waste levy, which is an important tool to reduce waste sent to landfills and drive recycling and resource recovery in the state.
It follows the release of a NSW Government issues paper that explored a range of reforms, such as potential adjustments to the levy rates and area boundaries, to improve the effectiveness of the levy and its administration and drive a safe, circular economy in NSW.
We acknowledge the decision to hold levy rates stable in 2026-27 may be disappointing for some in the waste and recycling industry.
The NSW Government will continue to carefully consider the feedback on the issues paper from local government and industry stakeholders about what the future levy rates should be.
We have also taken seriously the views of local government, which has expressed the need for greater support for waste and recycling programs to meet growing service and infrastructure demands.
The NSW Government will provide further updates on the future of the waste levy in the first half of 2026.
Minister for the Environment, Penny Sharpe said:
"The waste levy is an incredibly important tool that can shape our state's recycling and resource recovery efforts, drive investment in waste infrastructure, and protect our environment.
"Any changes to the current program must strike the right balance in ensuring our waste is managed appropriately and meeting community expectations in a cost-of-living crisis.
"We will report back in the first half of 2026 on the future of the waste levy as we work together to drive a flourishing circular economy in NSW."
