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'A cost we simply cannot absorb': councils push back on state government’s 'bin tax'

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The state government has hit local councils with a bin tax, meaning ratepayers will have to pay for the waste they send to landfill.

Sunshine Coast and Noosa councils are among 19 Queensland councils that will be forced to pay the state waste levy.

From July 1, the affected councils in waste levy zones will no longer receive a 100 per cent offset, which the state government had previously paid. That offset was intended to prevent the levy from being applied to household bins.

Local Government Association of Queensland (LGAQ) chief executive officer Alison Smith said the offset had dropped to 70 per cent for some councils for this financial year.

She added that the offset amount was forecast to drop each year going forward unless the state government agreed to a reset.

“If you’re in the waste levy zone, your council will be forced to choose between passing the cost on to ratepayers, or having less money for council services like parks, libraries and community facilities,” Ms Smith said.

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“The waste levy is part of the state government’s plan to reduce the amount of rubbish sent to landfill and to increase recycling.

“However, when the former state government first introduced plans to reduce the levy offset paid to councils, it made two promises: ensuring the levy has no direct impact on households and that a $2.1 billion investment into recycling options and other markets for kerbside waste occurs to ensure households had the options they needed to divert waste out of their bins in order to avoid the tax.

“That investment and those options are not in place, meaning households don’t have appropriate waste diversion options.”

Sunshine Coast Council rates waste charges are set to increase by $2.35 per week.

Sunshine Coast mayor Rosanna Natoli said as one of Queensland’s fastest-growing regions, her region was already feeling the pressure on waste services.

Under the 2025-26 council budget, the standard 240-litre wheelie bin (general waste and recycling) and the 240-litre garden organics bin collection services will rise a total of $2.35 a week.

“We’re working hard to manage that growth responsibly, without passing unnecessary costs onto our householders,” Cr Natoli said.

“Our community expects us to deliver efficient, sustainable waste services – and we do.

“But the state’s waste levy amounts to a bin tax that hits households directly and it’s a cost we simply cannot absorb.

“This campaign is about protecting our residents.

“It’s not just about bins – it’s about fairness.

“We’re standing with the LGAQ to say no to a bin tax because it’s our job to stand up for our community.”

The recent state budget showed an estimated $477 million in revenue will be generated by the state government from the waste levy in the 2025-26 financial year.

Ms Smith said councils wanted a reset.

“We welcome the launch of a new Queensland Waste Strategy that is currently out for public consultation, but we are calling for a pause on any reduction to the waste levy offset payments to councils until this review is completed,” she said.

The LGAQ has launched a #Binthetax campaign using an animated ibis called Chooky the bin chicken.

“Don’t dump the cost on ratepayers; bin the tax, it stinks,” is the start of Chooky’s commentary on the bin tax.

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