Big new tax on rubbish to be announced by Bligh Government

CourierMail.com.au

QUEENSLAND business is set to be hit with a major new tax aimed at slashing the millions of tonnes in waste produced each year.

Ahead of Tuesday's State Budget, the Bligh Government will on Saturday unveil plans for a new waste levy of $35-$150 a tonne from July 1, 2011.

The levy, which is likely to ignite a bitter dispute with business, will apply to waste sent to landfill sites by the commercial, industrial, construction and demolition industries.

It is expected to raise about $380 million over the first four years.

Premier Anna Bligh said Queensland had to move in line with other states with a levy or risk becoming a dumping ground for the nation's rubbish. "For too long, Queensland has been one of Australia's biggest waste generators," Ms Bligh said.

"Even worse, we've too often chosen landfill over recycling to deal with our mounting waste.

"Furthermore, other mainland states not only have a waste levy but are actually increasing theirs, exposing Queensland as an even cheaper place for interstate companies to dump their waste."

About 32 million tonnes of waste is dumped in Queensland each year, with only two million tonnes generated by households.

The Government hopes the levy will be an incentive for business to conserve and recycle. However, industry leaders are certain to accuse the Government of milking business for more money at the worst economic time which will cost jobs.

Under the scheme, business will be charged $35 per tonne for general waste, $50 for low-hazard waste and $150 for high-hazard waste.

About $159 million of the levy will go to assisting business to reduce rubbish while $120 million would help councils introduce better waste management facilities.

The remaining money will go towards environmental initiatives.

Treasurer Andrew Fraser said the industry waste levy will be lower than southern states, "but it needs to provide sufficient incentive to recycle waste rather than send it to landfill".