Territorial authorities and the waste disposal levy

A $50 levy on each tonne of waste sent to municipal landfills is collected from landfill operators. This will increase to $60 on 1 July 2024.

Half of the money collected by the Ministry for the Environment (the Ministry) through the waste disposal levy is paid to territorial authorities (TAs) on a quarterly basis each year. The remaining money (minus administration costs) is put into the Waste Minimisation Fund.

TAs must spend the levy money they receive to promote or achieve waste minimisation. This spending must be in accordance with their waste management and minimisation plans (WMMPs). The amount of levy each TA receives is determined by the number of people in each district. 

WMMPs prepared by each territorial authority set out how the levy will be used.

See Waste levy spending: Guidelines for territorial authorities.

TAs currently provide a voluntary report to the Ministry each year describing how the levy has been spent. From 1 July 2024 this reporting will be compulsory (rather than voluntary) with the first report due on 30 September 2025 (for the 2024/25 financial year).

TAs must adopt a WMMP and review their plan every six years. Before adopting or reviewing a WMMP a territorial authority must conduct a waste assessment under section 51 of the Waste Minimisation Act 2008 (WMA).

Section 33 of the WMA requires the Ministry to retain levy money payable to a TA if the TA has not reviewed its WMMP in the six-year timeframe. The Ministry has no discretion here and has a legal obligation to retain the levy money if the WMMP review is not complete.

TAs may create a joint WMMP with other TAs.

For more information see the WMMP guidelines

The share a TA receives is calculated using the following formula.

Notes to formula

• levy collected is the total levy money collected in the financial year
• levy refunded is the total levy refunded in the financial year, in accordance with the regulations under section 41(1)(k).
• district’s population is:
  • the population of the TA district taken from the most recent census or
  • if the district was constituted or its boundaries altered after that census, the population of the district assessed by the Government Statistician as at the date of the district’s constitution or boundary alteration
• A TA's share of the levy must be paid to the territorial authority in the prescribed manner and at the prescribed times. This is in accordance with section 33 of the WMA.

Data file [Excel, 89 KB]

The spreadsheet shows all payments to each TA.

Each TA must plan for and undertake their own spend activity in accordance with the requirements of the WMA and their WMMP.

Most WMMPs generally contain some flexibility in describing how each TA will spend their allocated levy funds. The Ministry recommends that, where possible, TAs maximise the use of levy funds on initiatives where the highest impact on waste minimisation will be seen (ie, focusing on the top end of the waste hierarchy and prioritising spend on those initiatives which reduce waste, followed by reuse, then recycling etc).

Examples of activities TAs could spend levy funds on

These could include:

• expansion of services to enable wider district participation in waste reduction, reuse and recycling initiatives
• contribution towards waste minimisation component of planning activities for the next waste assessment / WMMP review
• behaviour change education (waste minimisation workshops or targeted education on activities such as composting or recycling contamination education)
• community waste minimisation grants (ensuring a framework is in place for doing so in accordance with section 43 of the WMA)
• dedicated resource for waste minimisation / WMMP implementation, noting the levy must only be used for activities related to waste minimisation
• recycling ‘drives’ or drop off days for harder to recycle items, such as batteries / e-waste or whiteware
• subsidisation for collection of rural recyclables such as bale wrap
• working with businesses to implement waste minimisation.

Where spending is not specifically set out in a WMMP

As set out in the levy spend guidelines, where spending is not specifically set out in a WMMP but where additional spend can be tied back to the objectives and methods set out in the WMMP, it is good practice for TAs to be able to demonstrate:

• the process that has led to decisions on levy spending
• that this process meets all statutory and internal process requirements, including documenting decisions and sign off at the appropriate level of authority
• there are clear links between the objectives of the WMMP, levy spending decisions, and what is reported to the Ministry
• there has been appropriate public consultation on key projects
• spending is aligned with activity management plans, long-term plan and annual plan budgets.

Where a TA may wish to spend additional funds on activities which are not in accordance with their WMMP

The TA could consider whether funds should be accrued (if possible in an interest-bearing account to maximise opportunity from levy funds), until such time as they are due to review their WMMP.

If a TA does not wish to accrue funds and wants to amend their objectives and methods in their WMMP, this will require a review of the WMMP in accordance with section 44 of the WMA.

This does not necessarily have to be a full review, but it needs  to refer to the most recent waste assessment, and use the special consultative procedure set out in section 83 of the Local Government Act 2002 (also seek direction from your TA’s Significance and Engagement Policy on this).

It should be noted that a full review and waste assessment would still need to be undertaken within six years from the original WMMP.