A $70 per tonne waste levy will be introduced in Queensland, under a proposal the government insists will not have a direct cost for households.
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The plan is aimed to stem the tide of New South Wales trucks coming across the border to dump thousands of tonnes of rubbish in Queensland landfills.
Queensland is the only mainland state without a waste levy, after it was scrapped under Campbell Newman's LNP government in 2012, when it was $35 a tonne.
The new waste levy would begin in early 2019, and would also apply to Queensland waste taken to landfill, not just rubbish from interstate.
The waste levy will increase by $5 for the next four years.
But councils in far north Queensland and in most of western Queensland, except for Mount Isa, will be free from a levy - except for any waste brought into the zone from outside.
The waste levy zone will include 38 local government areas out of 77, which covers 90 per cent of Queensland's population.
Affected councils will get a 105 per cent rebate on their waste - calculated based on the tonnage disposed of in the previous financial year multiplied by the current levy rate - to make sure they do not need to pass on the impact to households, but the rebate will reduce over time.
For example, for a council with 60,000 kerbside-serviced households, with an annual average of 700kg of 'red top' bin waste per household and a levy rate of $70 per tonne, this equates to an annual advance payment of about $3 million.
If councils made any savings in the amount of household waste disposed of, they could keep the extra money.
Deputy Premier Jackie Trad said the rebate to council would reduce over time because there would be less waste dumped in landfill "because we're actually managing our waste better".
"There will be no flow-on effects from the waste levy to households, it will be same cost as it currently is to put your wheely-bin out," she said.
Ms Trad said the state needed to act to stop "dreadful amounts" of interstate dumping.
"We need to act in order to ensure that we leave a great legacy for future generations," she said.
Sydney's waste levy next year will be $141.70, but Ms Trad said Queensland would not need to charge a similar amount to retain a disincentive, as companies would still need to bear the cost of transporting the waste to Queensland.
A government directions paper stated matching Sydney's high levy would create a "shock to the market and the current resource recovery infrastructure capacity may struggle to meet high demand to divert material from landfill disposal".
Ms Trad said the details of predicted revenue from the waste levy and the cost of the rebate would be detailed in the upcoming state budget.
There will also be rules to prevent stockpiling as a long-term way to avoid the levy.
Chamber of Commerce and Industry Queensland opposes the levy, arguing it unfairly slugs regional Queensland businesses for a predominantly south-east Queensland issue.
CCIQ general manager Kate Whittle questioned why the levy, which was designed to deter NSW from dumping in south-east Queensland, needed to become a blanket levy paid by businesses across the state.
"The prospect of another levy will mean Queensland businesses have to absorb further cost imposts on their operations, adding even more pressure to already tight profit margins," she said.
LNP leader Deb Frecklington said the waste levy would cost families.
"This tax will hit every industry from construction to manufacturing, tourism and hospitality because it will cost more for businesses to dispose of their waste," she said.
"Those businesses will have no choice but to pass the cost on to their customers or be out of pocket themselves, and that's not fair."
The Australian Industry Group Queensland head Shane Rodgers called for the introduction of the levy to be delayed to give businesses time to explore other waste options.
"Seven months' notice is simply not enough," he said.
Mr Rodgers said most companies would have little choice but to pass on the levy costs.
LNP Environment spokesman David Crisafulli described the waste levy as a "revenue strategy", while opposition Small Business spokeswoman Fiona Simpson slammed it as a "cruel joke".
A $35 per tonne waste levy was introduced in Queensland in December 2011, and collected $42.9 million during the seven months it was in place.
