Sustainability
2 min read
By Pedro Carreira
Updated 25 June 2026
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.
Key Numbers
- Metro levy 2025–26: $169.79/tonne
- Metro levy 2024–25: $129.27/tonne
- Pass-through per 1100L lift: $5–15
- Rural municipal levy: $84.78/tonne
What You Need to Know
The landfill levy is a state charge on every tonne sent to landfill, and your provider passes it straight through — typically $5–15 per lift on a 1100L general bin. It has climbed well above CPI, so a bin that looked affordable two years ago quietly costs more each renewal:
| Levy band (2025–26) | Rate |
|---|
| Metropolitan Melbourne | $169.79/tonne |
| Metro — prior year (2024–25) | $129.27/tonne |
| Rural municipal | $84.78/tonne |
| Rural industrial | $149.33/tonne |
Diverting to recycling and organics avoids the levy entirely, which is precisely the financial lever Recycling Victoria — A New Economy is built around. As an independent broker, Bundle Waste audits your invoice for free to check the levy is being applied correctly, compares a network of providers, and is paid only from the savings we find.
Related Resources
Related Questions
How can my business reduce waste to landfill?+
Key strategies: 1) Source-separate all recyclables (50–70% diversion), 2) Food organics program (20–40% for food businesses), 3) Compact cardboard, 4) Staff training, 5) Quarterly audits, 6) Set diversion targets. Every tonne diverted from landfill avoids the full $169.79/tonne metro levy.
What is waste-to-energy?+
WtE facilities combust residual waste to generate electricity. Victoria's first large-scale facility at Maryvale processes 325,000 tonnes/year. Disposal costs expected $150–200/tonne — below landfill. WtE only accepts residual waste that cannot be recycled.
What are carbon offsets from waste diversion?+
Each tonne of organic waste diverted from landfill prevents 1–2 tonnes CO2-equivalent methane. Recycling aluminium saves 95% of production energy. Large generators can earn ACCUs worth $30–35 each through carbon markets.
What does the landfill levy fund?+
Funds: Sustainability Victoria programs ($40+ million/year), recycling infrastructure, circular economy initiatives, resource recovery upgrades, council waste education, contaminated site remediation, and EPA operations.
How does landfill gas affect the environment?+
Landfill gas is approximately 50% methane (28x more potent than CO2 over 100 years). Victorian landfills produce a significant volume of greenhouse gas emissions each year. Food waste is the primary methane generator.
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
