The Government plans to increase the waste disposal levy $15 per tonne over the next few years.
Budget 2024 documents show the levy for municipal landfill will rise to $75 by July 1, 2027, following two $5 increases in 2025 and 2026. The same will apply to construction and demolition fill ($45 by 2027) and managed or control fill ($20 by 2027).
"The proposed changes would equate to an estimated increase in levy costs of around $5 per annum per household by July 1, 2027," the documents say. "Levy costs for waste disposal of a new-build house could increase by around $45 per house, while levy costs for disposal of materials from a typical house demolition could increase by around $205."
According to the Budget documents, this year's $10 increase on July 1 was legislated by the previous Government and would remain in place.
Environment Minister Penny Simmonds said the Coalition Government would also introduce a bill allowing it to "fund a broader range of environmental outcomes, such as restoring freshwater catchments".
The levy would remain split 50/50 between central and local Government.
"Local Government will continue to have a 50 percent allocation so they can focus funding on local projects to minimise waste and contribute to a more sustainable country for us all," Simmonds said.
"The Government initially intends to invest its share of the waste levy funds in prioritising waste infrastructure development and remediating contaminated sites such as vulnerable landfills, with future investment priorities to include work on kerbside recyclables, construction and demolition waste, and organic waste.
"Levy increases introduced by the previous Government require the levies for municipal and construction and demolition landfills to increase by $10 per tonne on July 1, 2024. New changes to levy rates will see incremental increases continue from July 1, 2025, to July 1, 2027, but at a much slower rate."
The combined central and local Government take from the levy would increase to $1.195 billion from $1.025 billion over the next four years, the documents say.
"Getting ahead of climate change is important for New Zealand to help prevent avoidable costs over the long-term and this incremental levy change means we can invest further in reducing our waste and preparing for natural disasters," said Simmonds.
Climate Change Minister Simon Watts believed the waste disposal levy's expansion, alongside other Budget 2024 initiatives, would help Aotearoa meet its "emission reduction targets, including the overall goal of carbon net-zero by 2050, while continuing to prepare New Zealand for the more frequent severe weather events that climate change will bring".
"Budget 2024 provides the foundation for us to reduce our emissions and increase our resilience, while ensuring that our response is providing value to hardworking Kiwis."
