Regulatory Impact Statement for a Tasmanian waste levy

OVERVIEW

In its draft Waste Action Plan, the Tasmanian Government committed to consider the introduction of a levy on solid wastes disposed of to landfill across the state.

Being new legislation, there was a requirement for the government to assess the costs and benefits of a waste levy in delivering a targeted outcome, while investigating impacts on competition and other parts of the Tasmanian economy.

KEY INFO

Location:

Tasmania

Stakeholders:

Tas Government NRE Tasmania

Solutions:

Waste Avoidance, Reuse & Recycling

THE BRIEF

Drawing on Urban EP’s prior subject matter knowledge and experience in introducing waste levy legislation in another Australian jurisdiction (i.e. Victoria), the team was asked to:

• Prepare a Regulatory Impact Statement (RIS) in line with the Legislative Impact Guidelines

• Quantitatively model material flows, costs and benefits, and environmental impacts under BAU and under scenarios involving a range of different levy settings

• Engage widely with affected Tasmanian sectors, gather evidence of areas where the levy may lead to adverse consequences, and put forward measures to correct those consequences

• Put forward levy fund reinvestment models to optimise the allocation of public capital in support of the draft Waste Action Plan objectives

• Identify key activities and costs associated with implementing the levy

• Put together and communicate findings in plain language, in support of the Tasmanian Government’s consultation with the community and industry on the impacts of introducing a waste levy.

THE RESULTS

The study determined the competition impacts, public benefits, effects on different sectors and achievement of policy objectives for a range of waste levy options. In doing so, a preferred waste levy model was identified while satisfying the Tasmanian Government’s requirements for drafting legislation as set out in the Legislative Impact Guidelines. Potentially adverse consequences associated with the introduction of a waste levy were also explored, to inform public consultation and deliberations on the need for additional measures to optimise outcomes and reduce potential harms to the environment and the Tasmanian community.

The team framed the waste levy and related policy settings as a unique opportunity for Tasmania to transition towards a circular economy while coupling related levy re-investments to Brand Tasmania’s place-based branding strategy.

Following public consultation and parliamentary debate the preferred waste levy model was introduced in Tasmania.