As we all know, the cost of living is a hot topic these days, especially for us seniors who are often on a fixed income.

We're always on the lookout for discounts and savings, so it's essential to stay informed about any changes that might affect our wallets.

That's why we at the Seniors Discount Club want to inform you about a significant change coming to Tasmania that could see the price of your favourite beverages rise.

Starting on 1 May, Tasmanians will notice a price hike in their drinks when shopping at supermarkets like Woolworths.

This increase is due to the introduction of the state's Recycle Rewards scheme, which aims to encourage recycling and reduce litter by offering a 10-cent refund for each eligible container returned to a recycling station.

While the environmental benefits of such a scheme are clear, there's no denying the immediate impact it will have on consumers.

'The scheme will result in the price of certain products increasing by 22 cents per container,' the signage read.

'This price increase for each eligible container consists of a refundable fee (10 cents), scheme admin fee (10 cents) and GST (2 cents).'

TasRecycle, a non-profit organisation established by beverage giants Coca-Cola, Lion, and Asahi, will run the Recycle Rewards scheme.

To cover operating costs, businesses will be charged fees for each container sold—21.43 cents for aluminium cans and 22.19 cents for glass bottles.


There is a silver lining for smaller businesses, though. The Department of Natural Resources and Environment Tasmania has set a container-free threshold, meaning businesses won't have to pay scheme costs for their first 20,000 containers each year.

This is a boon for small beverage companies, which are integral to Tasmania's economy and culture.

A Woolworths spokesperson has stated that they've been working with supply partners to implement the government's Container Deposit Scheme and have communicated the impending price changes to customers.

'We’ve been working through the implementation of the Tasmanian Government’s Container Deposit Scheme with our supply partners,'

'As in all other states of Australia, where there are retail price changes resulting from the costs associated with a container deposit scheme, we have communicated these changes to customers in-store.'

'We’re supportive of the Container Deposit Scheme based on successful implementation in other states and the positive environmental, litter reduction and recycling outcomes.'

'The Container Deposit Scheme in Tasmania will commence on 1 May.'

They also expressed support for the scheme, citing successful implementations in other states and positive environmental outcomes.

However, Woolworths will not be the only one affected. All beverage suppliers are expected to face these additional costs, and it's up to them to decide how much will be passed on to consumers.
Independent reviews in other states have found no evidence of drink price increases exceeding scheme costs during the first year of implementation of container refund schemes.

Andrew Quarry from Australian Liquor Marketers in Tasmania and Fleur Brown from the Australian Retailers Association have indicated that businesses will likely have to pass these costs onto consumers.

'That cost increase is so significant that at no point could we expect anyone to absorb that cost,' he said.

This could strain household budgets and influence purchasing decisions, potentially leading to consumer backlash despite the price increases driven by government policy.

The Tasmanian government has been working to mitigate the impact on small beverage companies, offering a cost-free threshold and grants to help with transition costs, such as updating labels and barcodes.


The Recycle Rewards scheme does not just involve refunds; it also covers operating costs, including administration, financial management, and promotion.
These fixed costs are necessary to ensure the scheme is accessible, convenient, financially sound, and protected from potential fraud.

So, dear members, while we support initiatives that help our environment, we must be prepared for these changes.

You might want to stock up on your favourite drinks before 1 May or set aside a little extra in your budget for that refreshing soda or juice.

And remember, every time you recycle an eligible container, you're helping the planet and getting some of your money back.
Will the environmental benefits outweigh the initial hit to your pocketbook? How do you plan to manage the additional costs? Share your opinions and strategies in the comments below.