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Environment Protection Authority

Environmental Issues

Waste and recycling

Stockpile management

To claim a deduction for waste, facilities need to know when that particular waste was received and have suitable systems to substantiate this. Where a facility stockpiles waste before processing it or transporting it off-site, they should ensure that they record:

  • the amount of waste in tonnes, and its dollar value (i.e. applicable levy rate), added to the stockpile and recycling process
  • the amount of waste in tonnes, and its dollar value, transported from the site.

Deductions cannot be claimed for waste that was received more than 24 months before the date on which the deduction is claimed. Deductions that cannot be substantiated may be disallowed by the EPA.

Preferred method for stockpiling waste

Since deductions are calculated at the levy rate that was applicable at the time the waste was received, waste received in different financial years should be stockpiled separately wherever possible.

 Example: Waste received over two years – separately stockpiled

 Between 1 January and 30 June, a facility received 5,000 tonnes of mixed building and demolition waste (levy rate: $95). Between 1 July and 31 August a further 3,000 tonnes was received (levy rate $105).

 During September, 6,000 tonnes is crushed and progressively removed from the site. The 6,000 tonnes is drawn from the waste received after July with the balance from the previous year.

 The value of the transported waste deduction will be calculated as follows:

  • 3,000 tonnes X $105.00 plus 3,000 tonnes X $95.00 = $600,000

 Note: The levy rates are for this example only.

FIFO: First in, first out rule

Site-specific circumstances may make separate stockpiling based on financial years impractical. As a result, stockpiles awaiting processing may contain waste which has been received in two or more financial years.

When claiming deductions for these stockpiles the accounting principle known as the first in, first out (FIFO rule) will be applied.

Under the FIFO rule, the value of a deduction will be calculated by first applying the lowest levy rate applicable to waste in the stockpile. Once all that waste in that stockpile has been accounted for (i.e. either transported off-site, used pursuant to an approved operational purpose or disposed of in an active cell), the value of a deduction can be calculated at the next highest levy rate and so on.

 Example: Waste received over two years – stockpiled together

 The following example assumes that all waste is removed within two years of receipt and is not stored in separate stockpiles by financial year of receipt.

 Between 1 January and 30 June a facility received 5,000 tonnes of mixed building and demolition waste (levy rate $95). Between 1 July and 31 August a further 3,000 tonnes is received (levy rate $105).

 During September, 6,000 tonnes is crushed and progressively removed from the site. The transported waste deduction will be calculated as follows:

  • 5,000 tonnes X $95.00 plus 1,000 tonnes X $105.00 = $580,000

 Note: The levy rates are for this example only.

Stockpile identification

Regardless of the method of stockpiling, each stockpile must be given a unique stockpile identification number and the amount and type of waste added to or removed from the stockpile each day must be recorded. Each stockpile will be surveyed at least twice a year in accordance with Waste Levy Guideline 5 – Topographical and Volumetric Surveys in the Waste Levy Guidelines (PDF 509KB). Also refer to the volumetric surveys webpage.

Page last updated: 31 July 2015