Victoria’s waste levy increase: Keeping your construction costs down..

You have no doubt heard Victoria’s waste levy is increasing from 1 July, 2025. For residential builders, this means even sharper scrutiny on costs and compliance. For estimators and procurement teams, as well as staying compliant, understanding the new levy means you will have to look at ways to protect your margins and keep project budgets on track.

While it’s an increasing cost we’d rather not have, it is a compliance requirement enforced by the Environment Protection Authority (EPA). Builders and waste managers must follow strict waste disposal regulations, including accurate reporting, proper segregation, and lawful disposal of all waste streams. Compliance failings can result in audits, penalties or legal action. The levy is designed to drive better waste practices, reduce landfill and ensure that everyone in the construction sector meets their environmental responsibilities.

Let’s break down what the waste levy increase means for builders, and how smart waste management can help you minimise the impact.

New waste levy rates: what’s changing?

For residential construction, this increase translates directly into higher costs for every tonne of waste sent to landfill. With disposal fees now a bigger line item, accurate estimating and proactive procurement are more important than ever.

Estimators should update tender allowances to reflect the latest rates and factor in the risk of contaminated loads, which can attract even higher fees. Procurement teams must ensure waste contracts are transparent and up to date, and avoid any surprises.

Reducing waste volume is the first line of defence

Since every cubic metre you keep out of the skip is a direct saving on disposal fees, the most effective way to minimise waste levy costs is to generate less waste in the first place. This starts with a solid waste management plan before breaking ground:

• Order materials to size and in the right quantities to reduce offcuts and excess.
• Work with suppliers who offer take-back schemes or minimal packaging.
• Store materials securely on site to prevent damage and unnecessary waste.
• Encourage trades to reuse or repurpose offcuts where possible.

Avoiding penalties and maximising recycling

Contaminated waste loads are costly. When recyclable materials like timber, metals, or masonry are mixed with general waste, the entire load is often sent to landfill at a premium rate, and can attract regulatory penalties.

Establishing clear, segregated zones for waste streams is essential. Toolbox talks and regular site walks help keep everyone on track. For hard-to-recycle materials, ensure your waste provider is equipped to handle them compliantly since these materials can’t simply be thrown in with general waste and require specialist disposal.

Professional waste management services for cost savings

Partnering with a professional waste management provider pays off in several ways:

• They help you implement efficient site cleaning and waste removal routines, so your crews spend less time sorting and more time building.
• Providers like us recycle a high percentage of construction waste, turning masonry into crushed rock for slab backfills and diverting valuable materials from landfill.
• Transparent pricing and scheduled pickups mean you avoid hidden fees and keep your site safe, tidy and compliant.

The bottom line 

With Victoria’s waste levy set to remain an ongoing cost pressure, estimators and procurement teams must lead the charge on waste management. By planning ahead, segregating waste and partnering with the right provider, you can keep disposal fees under control and maintain your competitive edge in a tightening market.

Reach out to our team for custom waste management options to keep your projects efficient, compliant and cost-effective.