Binning budgets: Aussie city's residents face upcoming 'bin tax' hike amidst cost-of-living woes
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As if the cost-of-living pressures weren't enough for this Aussie city’s residents, there's a new financial hurdle on the horizon that could further strain household budgets.
A local council has announced plans to increase its ‘bin tax’, a move that has left many residents feeling frustrated and financially stretched.
In the City of Yarra, a local council in Melbourne, the bin tax—introduced just a year ago—currently charges residents an additional $115 on top of their council rates for kerbside rubbish bin collection.
However, draft budget documents for 2024-2025 indicated that this fee is set to rise by an average of 30 per cent next year.
This substantial hike sparked criticism, with some accusing the Greens-led council of circumventing rate caps through this separate levy.
Rate caps, as set by Victoria's Local Government Minister Melissa Horne, restrict councils from increasing their rates by more than 2.75 per cent in a single year.
However, by separating the bin tax from the general rates, councils like the City of Yarra can bypass these limitations and impose higher charges on residents.
Independent councillor Stephen Jolly expressed his surprise at the proposed increase, especially given the proximity to the upcoming October elections.
‘By separating the bin tax, you immediately aren't subject to the rate cap, so they can jack it up exponentially,’ he commented, highlighting the loophole that allows for such significant increases.
The Yarra City Council justified the increase by linking it to the costs associated with introducing a fourth kerbside collection bin.
This new lime green-lidded 120-litre bin is designed for the collection of food and garden organic materials (FOGO) and has been rolled out to approximately 44,000 households, with the first collection scheduled for July 1.
‘The state government requires all councils to introduce a FOGO service by 2030,’ a council spokesperson explained.
‘The council has worked hard to keep the cost of implementing and delivering the FOGO service as low as possible without compromising the quality or efficiency of the service.’
While other councils have also introduced waste levies, their increases are modest in comparison.
For example, the City of Port Philip raised its levy by 2.7 per cent, and the City of Hobsons Bay by 7.5 per cent.
However, a recent Council Watch investigation revealed that more than half of Victoria's 79 councils are adding 'fake' costs to their waste levies to support their bottom lines, with the funds being used for other services such as street sweeping and graffiti removal.
This practice drew criticism from Minister Horne, who released guidelines in December 2023, stating some councils were not using ‘best practice’ for the fees and that this ‘eroded public transparency and trust in local government’.
As Australians grapple with rising living costs, the City of Yarra's increase on the controversial ‘bin tax’ in Melbourne sparked outrage and concern among residents.
This move reflects a broader trend of increasing expenses faced by many households across the country.
With millions of Australians feeling the financial strain, the impact of such policies is felt deeply by those already struggling to make ends meet.
As new bin charges hit households, including seniors on fixed incomes, many are left wondering how they will manage the additional financial burden.
Are you affected by this increase? What do you think about this change? Share your insights in the comments below.
A local council has announced plans to increase its ‘bin tax’, a move that has left many residents feeling frustrated and financially stretched.
In the City of Yarra, a local council in Melbourne, the bin tax—introduced just a year ago—currently charges residents an additional $115 on top of their council rates for kerbside rubbish bin collection.
However, draft budget documents for 2024-2025 indicated that this fee is set to rise by an average of 30 per cent next year.
This substantial hike sparked criticism, with some accusing the Greens-led council of circumventing rate caps through this separate levy.
The City of Yarra in Melbourne is raising its kerbside bin collection fee, adding financial pressure on residents. Credits: Shutterstock
Rate caps, as set by Victoria's Local Government Minister Melissa Horne, restrict councils from increasing their rates by more than 2.75 per cent in a single year.
However, by separating the bin tax from the general rates, councils like the City of Yarra can bypass these limitations and impose higher charges on residents.
Independent councillor Stephen Jolly expressed his surprise at the proposed increase, especially given the proximity to the upcoming October elections.
‘By separating the bin tax, you immediately aren't subject to the rate cap, so they can jack it up exponentially,’ he commented, highlighting the loophole that allows for such significant increases.
The Yarra City Council justified the increase by linking it to the costs associated with introducing a fourth kerbside collection bin.
This new lime green-lidded 120-litre bin is designed for the collection of food and garden organic materials (FOGO) and has been rolled out to approximately 44,000 households, with the first collection scheduled for July 1.
‘The state government requires all councils to introduce a FOGO service by 2030,’ a council spokesperson explained.
‘The council has worked hard to keep the cost of implementing and delivering the FOGO service as low as possible without compromising the quality or efficiency of the service.’
While other councils have also introduced waste levies, their increases are modest in comparison.
For example, the City of Port Philip raised its levy by 2.7 per cent, and the City of Hobsons Bay by 7.5 per cent.
However, a recent Council Watch investigation revealed that more than half of Victoria's 79 councils are adding 'fake' costs to their waste levies to support their bottom lines, with the funds being used for other services such as street sweeping and graffiti removal.
This practice drew criticism from Minister Horne, who released guidelines in December 2023, stating some councils were not using ‘best practice’ for the fees and that this ‘eroded public transparency and trust in local government’.
As Australians grapple with rising living costs, the City of Yarra's increase on the controversial ‘bin tax’ in Melbourne sparked outrage and concern among residents.
This move reflects a broader trend of increasing expenses faced by many households across the country.
With millions of Australians feeling the financial strain, the impact of such policies is felt deeply by those already struggling to make ends meet.
As new bin charges hit households, including seniors on fixed incomes, many are left wondering how they will manage the additional financial burden.
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