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Why do charges go up?

An explanation of why charges for Kimbriki's services increase

Kimbriki Environmental Enterprises Pty Ltd, with the Northern Beaches and Mosman Councils as shareholders, trading as Kimbriki Resource Recovery Centre is providing an essential service to the community.We operate in a highly regulated industry which involves high costs to ensure we comply with all environmental, legal, WHS and workplace requirements

As an example, Kimbriki is required to develop a site master plan which steps out how the site will be managed over time up until the landfilling operations cease. Following closure of the landfilling operation, Kimbriki is required to rehabilitate and landscape the site to enable several sporting fields to be constructed for use by the community. In addition, Kimbriki has to carry out environmental monitoring on the site for at least 30 years after closure.

The estimated total cost of these works is $191 million.

These funds must be collected over time from our gate fees and put aside from our normal operations to cover Kimbriki’s liability. The money cannot be spent for other purposes.

The EPA – Environment Protection Authority is the regulator for the operation of Kimbriki. The EPA now requires licenced waste operators to comply with an extensive range of new regulations. http://www.epa.nsw.gov.au/wasteregulation/legislation.htm

These include:

  • All vehicles must be weighed
  • Each site has maximum limits of material which can be stockpiled otherwise charges apply
  • New reporting requirements for tracking asbestos and tyres
  • Risk based licensing and changes to financial assurances

These requirements all have a financial and administrative impact on waste operators. For example, Kimbriki spent over $1 million installing new weighbridges in early 2016.

The EPA requires financial assurances from waste operators which are cash guarantees. This money is not available to the business to use for capital works or operational costs.

By 2020, Kimbriki plans to spend $30 million on capital works primarily for the purpose of improving our management of surface water, leachate and compliance with regulations.

These funds have to be generated from our gate fees.Information on the EPA website explains the situation: http://www.epa.nsw.gov.au/wasteregulation/waste-levy.htm

Waste levy

The Protection of the Environment Operations Act 1997 (POEO Act) requires certain licensed waste facilities in NSW to pay a contribution for each tonne of waste received at the facility. Referred to as the ‘waste levy’, the contribution aims to reduce the amount of waste being landfilled and promote recycling and resource recovery.

About the waste levy

The details and calculation of the waste levy payable by licensed waste facilities are set out in the Protection of the Environment Operations (Waste) Regulation 2014 (referred to as the 2014 Waste Regulation) and the Waste Levy Guidelines (PDF 509KB).

The Waste Levy Guidelines contain specific legal requirements which occupiers of ‘scheduled waste facilities’ must meet in addition to their obligations under the 2014 Waste Regulation.

The guidelines explain how waste is measured to calculate levy liability, when certain levy deductions can be claimed, and how records and reports are required to be made, kept and provided to the NSW Environment Protection Authority (EPA) in order for the occupier to fulfill their obligations under the 2014 Waste Regulation.

Where the waste levy applies

The waste levy applies in the regulated area of NSW which comprises the Sydney metropolitan area, the Illawarra and Hunter regions, the central and north coast local government areas to the Queensland border as well as the Blue Mountains, Wingecarribee and Wollondilly local government areas.

Waste levy rates 2017-18

The 2017–18 levy rates apply from 1 July 2017. The waste levy rate calculation is prescribed in the Waste Regulation as follows:
  • Metropolitan Levy Area: $138.20 per tonne
  • Regional Levy Area: $79.60 per tonne
In line with the 2014 Waste Regulation, the 2018–19 levy rates will again increase by Consumer Price Index (CPI) only.

Concessional levy rates

The 2017–18 concessional levy rate for virgin excavated natural material is:
  • Metropolitan Levy Area: $124.38 per tonne
  • Regional Levy Area: $71.64 per tonne.
The 2017-18 concessional levy rate for shredder floc is:
  • Metropolitan Levy Area: $69.10
  • Regional Levy Area: $39.80

Period SMA ERA RPA
2009-2010 $58.80 $52.40 $10.00
2010-2011 $70.30 $65.30 $20.40
2011-2012 $82.20 $78.60 $31.10
2012-2013 $95.20 $93.00 $42.40
2013-2014 $107.80 $107.80 $53.70
2014-2015 $120.90 $120.90 $65.40
2015-2016 $133.10 $133.10 $76.70
2016-2017 $135.70 $135.70 $78.20

The EPA is spending a portion of the money from the levy on these projects: