A " Re-Think " on waste levies !

As recently as two decades ago, getting rid of the rubbish that accumulates around the average home was simply a matter of hooking up the trailer to the car - and taking it to the tip.    In many areas there was no charge because this was deemed covered within council rates - and those that did charge kept the fee way below ten dollars.

The ecology people started a panic with the claim that our landfills were filling too fast and the mantra that " waste is bad " caused tip fees to rise sharply.   We were urged to " recycle " and thus began the era of " selective charging ".   Dumping an old mattress attracted a special rate, and that was quite separate from the charge to dump old televisions or electronic equipment.    Now - arriving at the tip with that trailer attached can attract fees that leave no change from a fifty dollar note.

Professional rubbish removal companies in New South Wales are now finding that it is cheaper to truck our rubbish to Queensland, because the tax regime in that state is lower.  Because of exorbitant tip fees, we are seeing ordinary homeowners avoiding a trip to the landfills and dumping their rubbish in parks and city streets.

This " special item " extra charge is impacting on the removal of deadly asbestos.    Asbestos is present in all homes built before 1986 and it's removal to a landfill incurs a special charge at the rate of $ 107.80 a tonne, and that is on top of the already inflated high tip charges.

The result has been predictable.   The desperate people with an asbestos problem are regularly dumping it in the dead of night - and in many cases it is putting the public at risk.   If asbestos is broken or crushed, the fibres that cause deadly diseases float in the air and can accumulate in the lungs of innnocent people.  The only way to safely remove asbestos is to wet it down and encase it in plastic bags.    The worst case scenario - is to have it exposed on a public street.

The New South Wales government is proposing to remove that $ 107.80 a tonne levy on asbestos as a public safety measure.   The incidence of public dumping has been rising, despite draconian fines and the threat of a gaol term for offenders.   It is simply an impost that encourages law breaking.

Now would be a very good time to re-examine the entire waste levy system.   It is not possible to tax rubbish out of existence, and what these waste levies have degenerated into is simply a " tax grab " to fill other tax shortfalls.

Like all tax matters, a simple algorithm comes into play.   Once the Treasurer finds a new tax source, it is inevitable that in future years the rate of that tax will increase because governments always have an increasing need for funds.   The original reason for that tax is quickly forgotten - and any new problems it's imposition is causing are ignored.

It would be very hard to find a logical reason why disposing of the inevitable waste of modern living should be viewed as a " tax opportunity " !