Waste disposal levy increase from June 

New waste disposal levy increases are scheduled to take effect from June 2026, expanding the range of disposal sites covered by the levy and increasing costs for material sent to landfill – however, not all groups are happy 

From June, the levy rate for construction and demolition fill will increase from $35 to $40 per tonne, while the levy for municipal landfills will rise from $60 to $75 per tonne. Managed or controlled fill levies will remain at $15 per tonne. Further increases are planned through to 2027. 

The waste disposal levy, administered under the Waste Minimisation Act 2008, is charged on waste sent to approved landfill and disposal facilities. Revenue collected through the levy is shared between central and local government and is intended to support waste minimisation and environmental initiatives. 

Historically, the levy applied mainly to municipal landfills. However, reforms introduced in recent years progressively expanded the levy to cover additional disposal facilities including construction and demolition fills, industrial monofills and managed fills. 

Encourage waste reduction 

The Ministry for the Environment says the staged increases are intended to encourage waste reduction, improve recycling rates and help fund waste infrastructure projects. 

Environment Minister Penny Simmonds said the changes were designed to improve New Zealand’s waste and resource recovery systems. 

“Funds from the levy are shared between central and local government. Local government will continue to have a 50% 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.” 

The Government has also broadened the purposes for which its share of levy revenue can be used. Amendments to the Waste Minimisation Act now allow central government funding to be directed toward a wider range of environmental projects, including contaminated site remediation. 

Reforms criticised 

The amendments to the Waste Minimisation Act have attracted criticism from Zero Waste Network Aotearoa, which argues the changes dilute the original purpose of the levy. 

The organisation said expanding the Government’s ability to spend levy revenue on broader environmental priorities could reduce investment in waste reduction infrastructure and resource recovery systems. 

“We need to spend $2.4bn to set New Zealand up with the right infrastructure so that businesses and households have the systems they need to be able to reduce, reuse and recycle,” said Zero Waste Network Aotearoa spokesperson Sue Coutts. 

Coutts said the revised rules risked diverting funding away from long-term waste minimisation efforts. 

“This is a nightmare scenario for the resource recovery sector,” Coutts said. 

“Instead of wisely investing the waste levy funds in infrastructure and systems to prevent and reduce waste, which would reduce long term costs and risks for councils and communities, the Government is frittering away the investment capital to shore up operational budgets and mop up problems created by polluting industries.” 

Coutts also criticised the broadened funding scope under the amended legislation. 

“Up until now the waste levy has been a ‘polluter pays’ charge with all of the funds generated going towards preventing and reducing waste,” Coutts said. 

“The Government’s portion of the funds can now be used to reduce environmental harm or increase environmental benefit. This is so broad that it basically becomes a slush fund.” 

Waste reduction in practice 

The construction sector is expected to face some of the most direct impacts from the levy increases due to the large volumes of waste generated through demolition, excavation and building activity. 

Some companies are already attempting to reduce the amount of material sent to landfill. 

In 2024, PlaceMakers introduced changes aimed at reducing plastic wrapping used across parts of its supply chain, including adjustments to pallet wrapping and packaging practices. PlaceMakers no longer wrap orders unless requested by customers, or if the product is in storage or rain is forecast. 

Customers who request wrapping are charged a $5+GST fee, with proceeds donated to Forest & Bird.