Circulars

17-25 – Container Deposit Scheme and waste management contracts

What’s new or changing

  • The NSW Container Deposit Scheme (the Scheme) will commence on 1 December 2017, with a 10 cent refund claimable on eligible containers.
  • Under the Scheme, operators of Material Recovery Facilities (MRFs) will be able to claim a portion of the refund on containers collected from kerbside recycling using the MRF Protocol.

What this will mean for your council

  • MRFs can begin claiming a refund on containers they process for councils on 1 December 2017. However, MRFs can only continue to claim the refund after 1 December 2018 where:
    • if there is no existing refund-sharing agreement, the MRF and council have put a refund-sharing agreement in place; or
    • if there is an existing refund-sharing agreement, where the council has notified the Environment Protection Authority (EPA) in writing that in the circumstances it is fair and reasonable.
  • Councils with waste management arrangements with MRFs should consider updating their contracts to share in the benefits of the Scheme.

Key points

  • Councils should be aware that the NSW Government will provide support to councils to assist with renegotiation of kerbside waste management contracts and other agreements affected by the Scheme.
  • This support aims to ensure that councils and their ratepayers are well placed to share in the proceeds of refunds claimed under the Scheme.
  • The EPA will make more detailed information available to councils during September 2017, along with communication and marketing support for engagement with residents.
  • Councils are encouraged to consider taking advantage of this support before finalising waste management contract renegotiations.

Where to go for further information

Tim Hurst
Acting Chief Executive