The Victorian Government is in talks with Charitable Recycling Australia over a controversial $1.5 million landfill levy on charity shops.
Director of CRA, Jeff Antcliff, who is also the executive general manager, commercial services at St Vincent de Paul Society Victoria, said the discussion involves all charities.
“Charitable Recycling Australia, the Premier and Minister’s office have met. We are constructively working together to resolve the concerns of the Victorian charity retail sector.
“Our joint focus is for the enhancement of our environment and to support Victorians in need.”
Mr Antcliff said they’re now waiting on the government.
A Victorian Government spokesperson confirmed the discussion saying Victorian Minister for Environment, Ingrid Stitt’s office met with CRA in recent weeks.
A Victorian government spokesperson said, “Charitable organisations play a significant role in driving Victoria’s transition to a more circular economy, by diverting tonnes of waste from landfill – as we work towards our target to divert 80 per cent of waste from landfill by 2030.
“We will continue to support the charitable recycling sector, as we have done since 2014, and are currently determining the most effective way to continue this support.
“Charities will also benefit from Victoria’s Container Deposit Scheme which will provide them with the opportunity to raise funds using container collection drives, register to receive donations, and run refund collection points across Victoria.”
The current Landfill Levy Relief Program for charitable recyclers is valid until 30 June 2023 after which charity shops could face an additional $1.5 million charges in the sector according to CRA.
In an open letter to Minister Stitt, Omer Soker, chief executive officer of CRA outlined the negative effects of the “unfair extra annual cost burden.”
“If charity shops are forced to cut costs on resource recovery to pay your tax, it means more waste to landfill for Victoria.
“They will be unable to divert the 242,000 tonnes from landfill they did last year –which means you, as Minister for Environment, will have caused an increase in waste to landfill.”
Mr Soker said the $1.5 million tax equates to 428,571 meals which charities won’t be able to provide as a result, “at a time when calls for help are increasing as more Victorians struggle with rent stress, electricity bills and rising costs of living.”
Meanwhile, upon the Federal budget, Paul Turton, Interim CEO of St Vincent de Paul Society Victoria (SVDP) acknowledged the “modest step forward” in cost of relief demonstrated by the Albanese Government, as he also holds onto his concerns.
“We, along with many community organisations and citizens, are disappointed that Job Seeker wasn’t raised to a sufficient level for recipients to live with adequacy of income. The Commonwealth Government could do much better.
“This budget represents a step in the right direction, but we need to do more,” Mr Turton said.
