Australia sends millions of tonnes of valuable materials to landfill every year—materials that could be recovered, recycled, and transformed into new products. The solution isn't just about recycling more. It's about creating the right economic signals to make it happen.
Developed in collaboration between Veolia ANZ and the University of Sydney's Net Zero Institute, this research paper examines how Australia's landfill levy system can work harder to drive real change. Authored by our CEO Richard Kirkman alongside Dr Ali Hadigheh (Senior Lecturer in Structural Engineering) and Professor Deanna D'Alessandro (Director of the Net Zero Institute and Professor of Chemistry), the paper reveals practical pathways from cross-border waste dumping challenges to breakthrough innovations in carbon fibre recovery.
This partnership demonstrates what's possible when industry expertise meets academic rigour. With Richard serving on the Institute's Industry Advisory Board, we're actively bridging the gap between cutting-edge research and real-world deployment at scale. The Institute brings together researchers, industry, government and community to accelerate Australia's transition to net zero—translating research into actionable solutions whilst building capability in the next generation of leaders.
This paper is just one project in our ongoing collaboration. Together, we're turning insights into impact.
Waste Not, Want Not: Rethinking Landfill Tax for a Smarter Waste Future
This article, developed through a collaboration between Veolia and the University of Sydney, examines how smarter landfill levies can accelerate Australia’s circular economy—without sacrificing practicality for councils, communities or industry.
Dr Ali Hadigheh is a Senior Lecturer in Structural Engineering at the University of Sydney. His research expertise lies in the development of sustainable construction materials, waste recycling, and corrosion protection.
Professor Deanna D’Alessandro is Director of the Net Zero Institute and a Professor of Chemistry at the University of Sydney, recognised for research in inorganic and materials chemistry, particularly in carbon capture and clean energy technologies.
Dr. Richard Kirkman is CEO and MD of Veolia Australia and New Zealand, leading ecological transformation across waste, water and energy. With a doctorate from Imperial College London in Infrastructure for the Circular Economy, he serves on the University of Sydney's Net Zero Institute Industry Advisory Board.
Australia’s waste landscape (and why it matters)
Australia generates 75+ million tonnes of waste each year1. Around 63% is recovered through recycling or reuse, but a large share still goes to landfill. Construction and demolition and materials make up nearly 45% of the total—a reminder that our building boom brings a waste challenge alongside economic growth.
Landfilling carries real costs: methane from decomposing organics (a greenhouse gas 28–36× more potent than CO₂ over 100 years), risks of soil and groundwater contamination, and the lost value of materials that could be recovered.
To shift the system, the National Waste Policy Action Plan targets an 80% average resource recovery rate from all waste streams by 20302. A central lever is the landfill levy—the fee applied to waste sent to landfill—designed to make disposal less attractive and recycling more competitive.
What the levy is — and isn’t — doing
The levy’s intent is clear, but implementation varies by state and territory, which weakens its impact. Rates range from $0/tonne in the NT to $170+/tonne in metropolitan NSW3. That spread creates unintended behaviours: when Queensland removed its levy in 2012, cross‑border disposal spiked, with a 25% increase in C&D waste going to QLD4. The levy returned in 2019.
Just as crucial is how levy revenue is used. While levies raise substantial income, only about 30% is typically earmarked for recycling‑related initiatives5. Where funds slip into general revenue, confidence suffers and investment signals blur—especially in regions that most need infrastructure.
There’s also a common concern that higher levies drive illegal dumping. NSW data, however, shows no strong correlation between levy rates and dumping incidents. Enforcement quality, public education, and access to legal disposal options appear to matter more.
Industry’s view: Three practical fixes
From operators’ perspectives, levy reform should focus on:
- Harmonisation across jurisdictions – to reduce cross‑border waste transport, simplify
compliance and de‑risk capital planning. - Revenue transparency and reinvestment – clearer, credible allocation of levy funds to recycling infrastructure and innovation.
- Learning from international models – draw on the UK and EU experience where landfill taxes sit within broader, coherent circular‑economy strategies.
The climate dividend of diverting organics
Organic waste (food and garden materials) is about 40% of municipal solid waste sent to landfill in Australia and is the primary source of the waste sector’s emissions (which are around 3% of national emissions).
Diverting organics offers a fast, measurable climate win: avoiding one tonne of food waste to landfill can prevent over one tonne of carbon dioxide equivalent over the life of its decay. Composting and recycling options carry significantly lower emissions profiles than landfilling.
What Works Elsewhere
United Kingdom
The UK introduced a landfill tax escalator in the late 1990s, providing a clear, rising price signal that unlocked investment in recycling and advanced treatment. It also set up the Landfill Communities Fund, directing a portion of tax revenue into local environmental projects. Results have followed: the UK’s household recycling rate is 44.6%, with Wales leading at 57%, Northern Ireland at 50.2%, England at 44% and Scotland at 42.1%6.
European Union
The EU embeds landfill taxes within circular economy frameworks: material certification, end‑of‑life product stewardship, deposit‑return schemes, and pay‑as‑you‑throw systems—supported by regulatory clarity and constructive stakeholder engagement. EU averages: 40.8% recycling overall, 65% for packaging, and 49% for municipal waste. Nations like Germany, Austria and the Netherlands exceed 50% municipal recycling, illustrating the value of stable, integrated policy7.
Innovation Spotlight: Wind Turbine Blades (and Carbon Fibre)
New waste streams bring new opportunities. The renewable sector is set to generate ~500,000 tonnes of composite waste (from wind turbine blades) annually by 2030, climbing to ~840,000 tonnes by 2050.
Carbon fibre—critical for aerospace, automotive and clean‑energy applications—is currently 100% imported in Australia8. Recovering it from end‑of‑life blades would reduce supply chain risks and bolster local advanced manufacturing.
A research team led by Dr Ali Hadigheh at the University of Sydney is transforming how industries manage composite waste, with groundbreaking innovations that promise major environmental and economic benefits. They are developing advanced recycling pathways for waste composites generated by the renewable energy, aerospace, construction, and sports sectors. One of their key breakthroughs is a solvolysis-based recycling method that breaks down fibre-reinforced polymer (FRP) composites at significantly lower temperatures—preserving up to 90% of the original fibre strength, which is around 10% higher than conventional thermal techniques. This method also slashes energy consumption by up to 70%, making it a more sustainable and cost-effective alternative9.
The team has also engineered smart concrete components using pulverised FRP waste from aeroplanes and carbon bikes. These materials act as self-sensing systems for structural health monitoring, enabling buildings and infrastructure to “communicate”; when they experience stress, overloading, or cracking, enhancing safety and resilience of our infrastructures10. Dr Hadigheh’s group is pioneering the use of microbes to recycle carbon and glass FRP composites, offering a biologically driven solution that further reduces environmental impact and energy use11.
Where to from here: Practical opportunities
- Harmonise levy structures across jurisdictions to reduce distortions and provide investment certainty.
- Make revenue use transparent and earmark a greater share for recycling and resource‑recovery infrastructure.
- Incentivise innovation via grants, tax credits and public–private partnerships (especially for
complex/strategic materials). - Support regions with tailored infrastructure funding and community education to close access and performance gaps.
- Expand circular‑economy tools (product stewardship, deposit return systems, pay as you throw systems, certification) to send consistent signals across markets.
Reinvesting levy revenues into advanced recycling can deliver productivity gains: building high‑value industries, skilled jobs, and local capacity in critical materials (e.g. carbon fibre, rare earth elements). That strengthens supply‑chain resilience and lowers production costs through energy‑efficient recycling.
Conclusion
Australia’s landfill taxes are pivotal — but their effectiveness depends on consistency, transparency and alignment with broader environmental and economic goals. With closer industry–government–research collaboration, we can turn levies into a clear, credible signal that accelerates infrastructure investment, spurs innovation, and moves Australia decisively toward a smarter, circular economy.
Authors
- Dr Ali Hadigheh, Senior Lecturer in Structural Engineering, University of Sydney.
- Professor Deanna D’Alessandro, Director, Net Zero Institute and a Professor of Chemistry at the University of Sydney.
Dr Richard Kirkman, CEO & MD, Veolia Australia and New Zealand.
2https://www.dcceew.gov.au/sites/default/files/documents/national-waste-policy-action-plan-2024.pdf
3 https://www.epa.nsw.gov.au/Your-environment/Waste/waste-levy/levy-regulated-area-and-levy-rates
4Dumped waste levy recycled by Queensland in a bid to stop rubbish at the border - ABC News
6Department for Environment, Food & Rural Affairs (Defra). (2024).UK Statistics on Waste: Waste from Households – 2010 to 2023. Retrieved from https://www.gov.uk/government/statistics/uk-waste-data
7European Commission. (2024).Landfill waste – Environment.
Retrieved from https://environment.ec.europa.eu/topics/waste-and-recycling/landfill-waste_en
8CSIRO. (2024).Australian Material Flow Analysis to Progress to a Circular Economy.
Authors: Miatto A., Emami N., Goodwin K., West J., Taskhiri S., Wiedmann T., & Schandl H.
Retrieved from: https://research.csiro.au/circulareconomy/wp-content/uploads/sites/303/2024/03/24-00034_ENV_REPORT_MaterialFlowAnalysisToCircularEconomy_WEB_240305-2.pdf
9https://doi.org/10.1016/j.compositesb.2023.110786
10https://doi.org/10.1016/j.conbuildmat.2025.140516
11provisional patent: https://ipsearch.ipaustralia.gov.au/patents/2024903495
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