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                    Waste Charge

                    A waste collection truck about to empty a recycling bin.
                    The Waste Charge enables City of Melbourne to recover costs for waste services. It is audited annually by the Essential Services Commission and does not generate additional revenue for City of Melbourne.

                    ​​​​To see how your waste charges are calculated, refer to the residential and commercial rates information below.    

                    To have your say on how we can best use the Waste Charge to reduce waste and improve recycling, please visit Participate Melbourne.

                    Residential rates

                    In 2023-24, residential properties valued above the median price of $500,000 pay a waste collection charge of $383 per year. Properties valued at or below the median price pay a concessional rate of $16​​​​​​0 per year.  

                    Your waste collection charge pays for services including recycling, food organic and hard waste collection. 

                    Ratepayers who do not use City of Melbourne’s waste collection services are not charged a waste collection fee. 

                    Commercial rates

                    Commercial properties pay a public realm waste charge to help keep our city clean. This includes services such as street cleaning, public litter and more. 

                    This waste charge is calculated using the Capital Improved Value (CIV), a rate-in-the-dollar calculation according to individual property values.

                    Frequently asked questions

                    Why is the City of Melbourne itemising waste charges?

                    Under the Waste and Recycling Act and Recycling Victoria reform, all councils are required to provide waste collection services to residential properties. 

                    City of Melbourne is itemising waste charges for greater transparency, so ratepayers can see a breakdown of their rates and what waste services cost. 

                    The cost of managing waste is increasing beyond Consumer Price Index. To enable City of Melbourne to cost-recover for these services, we have separated this charge to better understand the true cost of the service.    

                    ​This new charge will ensure our customers pay for the services they use and establish opportunities for future incentives. This is a fairer and more transparent model that will enable us to incentivise ratepayers to minimise waste and increase recycling outcomes.  

                    The itemised Waste Charge brings the City of Melbourne in line with 73 other Victorian municipalities who are obligated to provide waste services in accordance with the Recycling Victoria Policy. 

                    Commercial properties and waste services

                    Commercial properties are not obligated to receive the City of Melbourne’s waste services.  

                    City of Melbourne currently provides services to commercial properties in instances where:

                    • The businesses waste generation rates align with the residential service (up to 120 L of garbage and 240 L of recycling collected once per week).
                    • A commercial customer has access to a waste compactor (and they pay separate fees through accounts payable).
                    • City of Melbourne has targets to meet to minimise trucks in the city and bins stored in public spaces.  
                    • City of Melbourne is looking to further increase options for commercial properties to opt-in to waste and recycling services to help achieve our targets. 

                    When will the Waste Charge be itemised?

                    ​The itemised Waste Charge applied from 1 July 2022 and appears on Annual Valuation and rate notices issued from mid-August.

                    Is the Waste Charge a new tax designed to increase revenue?

                    No. City of Melbourne has always charged a waste charge for residential ratepayers and some commercial ratepayers. This was included as an overall charge. We are itemising this charge to make it more transparent for our ratepayers. 

                    The Waste Charge is audited by the Essential Services Commission on behalf of the Victorian Government. The objective of this change is not to increase revenue, only to recover the costs of waste which is an essential service for the community.

                    How is the Waste Charge fee for residential properties determined?

                    The Waste Charge includes the cost of waste collections, disposal and processing, hard waste and other materials collection services. These services currently cost approximately $20m per annum and are recovered from users through the fee model. 

                    In 2023-24, residential properties valued above $500,000 will pay a flat $383 Waste Charge. Residential properties valued below or equal to $500,000 will pay a flat concession fee of $160.

                    The median house price is determined by the Valuer-General Victoria each year. In 2023-24 the median house price in the City of Melbourne has been set at $500,000.

                    I own a high-rise apartment which uses a private waste collection service. Am I exempt from the Waste Charge?

                    ​Yes. Residential customers will only pay the Waste Charge if they are receiving a City of Melbourne waste collection service. About 20 per cent of ratepayers in the City of Melbourne do not use our waste collection services.

                    How is the Waste Charge fee for commercial properties determined?

                    If you are a commercial business receiving a City of Melbourne waste collection service, you will be charged a fixed fee determined on the valuation of the property. In 2022-23, for properties valued above the median $505,000 a flat fee of $378 will apply. Properties below and equal to the median $505,000 will pay a flat fee concession of $150. 

                    Commercial properties that don’t receive City of Melbourne collection services will just be charged the public realm fee which includes services that help keep our city clean, such as dumped rubbish collections, public litter bin services, street cleaning and more. These services currently cost City of Melbourne approximately $23m per year. 

                    The Waste Charge for commercial properties is determined using a similar calculation for general rates. Commercial property owners will pay a variable rate in the dollar amount according to their Capital Improved Value (CIV) property value.

                    I am a commercial business that currently opts in to a City of Melbourne waste service. If I cancel this, will it reduce my fee?

                    ​No. If a business cancels their City of Melbourne service, they will pay the public realm charge instead of the waste collection charge.

                    There is no itemised Waste Charge associated to my property – why?

                    ​If there is no itemised Waste Charge on your rates notice, it is because you are not receiving a City of Melbourne waste collection service. 

                    As a residential property owner, can I cancel the waste collection service?

                    ​No. Under the Local Gove​rnment Act, City of Melbourne is obligated to provide waste collection services to all residential properties. 

                    Private waste collection services will only be permitted under certain circumstances (access constrains or where the property requires services over the current level of entitlements).

                    Will the Waste Charge increase every year?

                    ​The Waste Charge will be reviewed every year and will align with the costs to deliver the service. 

                    The charge is calculated based on cost recovery mode and is audited annually by the Essential Services Commission on behalf of the Victorian Government.

                    How can I reduce the Waste Charge?

                    There is currently no option to reduce the Waste Charge, however, City of Melbourne is looking into appropriate incentives that reduce waste and are of benefit to residents and businesses.

                    If you would like to provide feedback on potential incentives please visit Participate Melbourne.

                    If I downsize my bins will the Waste Charge be reduced?

                    ​No. The Waste Charge includes the cost of bin deliveries and changes to service to accommodate various needs of residents. City of Melbourne is looking at incentives that help reduce waste and benefit residents. If you would like to provide feedback on this, please provide your feedback via Participate Melbourne.

                    I've never used the waste service – can I request a refund?

                    City of Melbourne has taken appropriate steps to ensure customers are only charged for services they use. If you believe you have not received a service, please contact us to discuss the matter.

                    I operate a commercial business with a private collection service. Can I change to a City of Melbourne waste service and reduce my fees?

                    If your business generates more than 120 L of garbage and 240 L of recycling per week, we're unable to provide you with a service. If you'd like to provide feedback on this, please visit Participate Melbourne.

                    City of Melbourne will only provide a waste collection service to commercial properties where the total waste generated equates to 120 L and 240 L of recycling or less. We can't subsidise private collection services and can only undertake full cost recovery.

                    City of Melbourne is reviewing our current service collection offerings to commercial properties.

                    My bin is regularly missed. Why should I pay the Waste Charge?

                    ​As a ratepayer you should expect to receive a consistent and high level of service. Your feedback is highly valued to help us to better manage service levels. Unfortunately we can't remove the charge as waste is an essential service and under the Local Government Act, we are obligated to provide it.

                    If you have an issue with bins being missed, please let us know so we can resolve the issue.

                    Your rates

                    Pie chart representing what your rates pay with Waste Charge taking up approximately an eighth and the remainder for all other council services. See full description below. 

                    The Waste Charge in your rates covers the following:

                    • Victorian Government taxes
                    • Street cleaning and amenity
                    • Collection and disposal of:
                      • General waste and recycling
                      • Litter and dumped waste
                      • Hard waste
                      • Food and garden organics
                      • Business waste
                      • Electronic waste.

                    The remainder of your rates help to pay for all other Council services, including:

                    • Roads and infrastructure
                    • Public health and safety
                    • Community services
                    • Arts and culture
                    • Roads and infrastructure
                    • Business Concierge.

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