Sustainability
2 min read
By Pedro Carreira
Updated 25 June 2026
Organic waste collection is a separate bin for food scraps, garden waste, and compostable materials, sent to commercial composting facilities instead of landfill.
You need one if food waste makes up 30%+ of your general waste (common in hospitality, cafes, supermarkets, aged care). Organics processing costs $0.08-0.15/kg vs general waste at $0.15-0.25/kg — switching 200kg/week of food waste from general to organics saves $60-200/month plus reduces your landfill levy exposure.
Key Numbers
- Organics processing: $0.08–0.15/kg
- General waste processing: $0.15–0.25/kg
- Food-waste threshold to switch: 30%+ of general waste
- Saving on 200kg/week diverted: $60–200/month
- Metro landfill levy 2025–26: $169.79/tonne
What You Need to Know
The case for a separate organics bin is simple economics: every kilogram of food waste you move out of the red bin avoids the gap between general processing and organics processing, and stops carrying the metro landfill levy of $169.79/tonne. The streams most likely to clear the 30% threshold are predictable:
- Hospitality and cafes — plate scrapings, prep trim and spoiled stock
- Supermarkets and grocers — expired produce and bakery waste
- Aged care and catering — high, consistent daily food volumes
- Function and event venues — large, bursty post-service loads
This is the direction Victoria is heading anyway — under Recycling Victoria — A New Economy, FOGO collection rolls out statewide by 2030, so right-sizing organics now gets ahead of it. As an independent broker, Bundle Waste audits your invoice free, benchmarks organics rates across a network of providers, and is paid only from the savings we find.
Related Resources
Related Questions
How can my business reduce food waste going to landfill?+
Three tiers: (1) Prevention — audit your menu/ordering to reduce overproduction (saves up to 15% on food costs), (2) Redistribution — donate edible surplus via OzHarvest or SecondBite (tax deductible), (3) Organics recovery — separate food scraps into a dedicated organics bin for commercial composting ($0.08-0.15/kg vs $0.15-0.25/kg for landfill). A cafe diverting 80% of food waste from general to organics can save $80-150/month and reduce landfill emissions by up to 70%.
What is the Victorian landfill levy and how does it affect my costs?+
The Victorian landfill levy is a state government charge on every tonne of waste sent to landfill. For 2025-26, it is $169.79/tonne for metropolitan Melbourne (up from $129.27 in 2024-25). This levy is passed through to businesses via their waste provider, typically adding $5-15 per lift for a 1100L bin. The levy has risen well above CPI in recent years. Diverting waste to recycling and organics avoids the levy entirely, making diversion financially compelling.
How can I reduce packaging waste in my supply chain?+
Five strategies: (1) Ask suppliers to use returnable packaging (saves up to 40% on packaging waste), (2) Switch from expanded polystyrene to recyclable alternatives, (3) Consolidate deliveries to reduce packaging frequency, (4) Join the Australian Packaging Covenant Organisation (APCO) for guidance and industry benchmarks, (5) Use a cardboard baler to compact and sell cardboard — businesses generating 1+ tonne/month of cardboard can earn $50-150/month from recyclers. Bundle Waste connects clients with cardboard buyers.
See exactly what you are overpaying
Bundle Waste reviews your current waste invoices and benchmarks them against a network of Melbourne providers — free, with a written report in 5 business days. You will see what you pay now, where the hidden charges are, and the rate we can negotiate. You only pay from the savings we find: no savings, no fee.
Get my free waste audit →
Updated 25 June 2026
