From 1 July 2026 the City of Melbourne removed the tiered compactor fee for businesses using its waste and recycling hubs and now charges 75 cents per kilogram of waste put through the hub compactors, plus 50 cents per kilogram for food waste disposed through the hub food-waste service. Separately, commercial waste collectors picking up from CBD businesses now need a waste collector permit costing $3,750 per truck per year. Both measures were endorsed in the council's 2025-26 Budget. For a hub user the bill now tracks weight exactly; for everyone else the permit cost arrives indirectly, spread across the collector's CBD customers.
What changed on 1 July 2026
| Item | Before | From 1 July 2026 (City of Melbourne) |
|---|---|---|
| Waste and recycling hub compactor use | Tiered fixed fee | 75c per kilogram of waste disposed |
| Hub food-waste service | — | 50c per kilogram of food waste |
| Waste collector permit (commercial collectors servicing CBD businesses) | No annual per-truck fee | $3,750 per truck per year |
The hub charges apply only to businesses that use the council's shared waste and recycling hubs, typically small laneway and arcade traders without room for their own bins. The permit applies to the collectors, not directly to the businesses they serve, but collectors run the CBD as a route and the cost lands somewhere in the pricing.
What 75c a kilogram means for a hub user
Under a tiered fee, a business that halved its waste saved nothing until it dropped a tier. Under a per-kilogram charge every kilogram counts, in both directions.
| Waste per week through the compactor | Weekly charge at 75c/kg | Annual (52 weeks) |
|---|---|---|
| 50 kg | $37.50 | $1,950 |
| 100 kg | $75.00 | $3,900 |
| 200 kg | $150.00 | $7,800 |
| 300 kg | $225.00 | $11,700 |
Food waste through the hub's food-waste service is 50c per kilogram, so a café that separates 60 kg of food scraps from 100 kg of total waste pays $30 for the food stream and $30 for the remaining 40 kg of general waste, $60 in total against $75 for putting everything through the compactor. Separation is now directly rewarded.
Hub versus your own bin
A CBD business with room for a bin has a comparison to make. On Bundle Waste's 2026 benchmarks a 240L general-waste bin collected weekly costs $55–85 a month in the CBD, a 660L bin $95–175 and an 1100L bin $140–245, with the $177.19 per tonne landfill levy already inside the price. A hub user putting 100 kg a week through the compactor pays about $325 a month at 75c per kilogram. Whether the bin wins depends on density: 100 kg of mixed café waste fills more than a 240L bin, so the honest comparison for that business is a 660L bin at $95–175 a month against $325 at the hub.
The $3,750 permit and how it flows through
A collector running a truck through the CBD five days a week pays $3,750 a year for that truck's permit. Spread across 150 CBD customers on the route it is $25 a year each; across 300 customers it is $12.50. Those are illustrative numbers, not council figures, but they show the scale: the permit is real money for a small collector with one or two CBD trucks and a rounding error on a national operator's rate card. Waste Management Review reported industry criticism of the permit when it was proposed; the council's stated aims include managing collection times and truck movements in the central city.
Practically, CBD businesses should expect three things on 2026-27 invoices from their collector: a new line item or a rolled-in increase referencing the City of Melbourne permit, tighter collection windows, and pressure to consolidate streams so fewer trucks enter the city.
What to do now
- Hub users: weigh a typical week. At 75c per kilogram the fee is transparent, and separating food waste to the 50c stream and cardboard to recycling cuts it immediately.
- Bin users: ask your collector in writing how the permit is being recovered. A $3,750 per truck charge does not justify a per-customer increase of hundreds of dollars.
- Everyone: compare the hub charge, your current bin contract and a benchmarked alternative side by side. Bundle Waste's free audit does exactly that, using your invoices and current CBD rates.
Sources
- City of Melbourne, Waste charge
- City of Melbourne, Waste collector permits
- City of Melbourne, Waste and recycling for businesses
- Waste Management Review, Industry blasts proposed Melbourne waste permit
- EPA Victoria, Waste levy rates 2026-27
Frequently asked questions
What is the City of Melbourne waste charge from 1 July 2026?
What is the Melbourne waste collector permit?
Do CBD businesses pay the $3,750 permit fee directly?
How much will a CBD café pay at 75c per kilogram?
Is a private bin cheaper than the council hub for a CBD business?
Why did the City of Melbourne introduce these charges?
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