Managing the Municipal and Industrial Landfill Levy

Expected to be tabled in July 2018


Objective To determine whether the Municipal and Industrial Landfill Levy (MILL) distributions are consistent with, and achieving, their legislative purposes.

Issues In Victoria, a landfill levy system plays an important role in minimising waste impacts on the environment and promoting investment in alternatives to landfill. Funds from the levy are also used to fund agencies responsible for waste planning and management in Victoria. Councils and landfill operators pay the levy, collected through tip fees.

Victoria’s population is expected to increase from 5.8 million to 8.9 million by 2043, and total waste generation is likely to almost double from 12.2 million tonnes in 2011–12 to 20.6 million during this period.

There have been ongoing issues with the landfill levy system—namely, its transparency and management and whether the funds’ expenditure is meeting the system’s intended legislative purposes. The administration of the fund was transferred from Sustainability Victoria to the Department of Environment Land Water and Planning (DELWP) to address these issues. Since 2012, the fund has increased by 294 per cent to $466.25 million, while the amount distributed through grants has decreased by 34 per cent to $23.2 million in 2015–16.

This audit will assess whether the landfill levy system is being managed transparently and is meeting its intended legislative objectives.

Proposed agencies DELWP, the Environment Protection Authority, Sustainability Victoria, the Metropolitan Waste and Resource Recovery Group and the Gippsland Waste and Resource Recovery Group