As part of the State Budget announcements, the State Government has backtracked on its proposed waste tax on charity shops.
Charitable Recycling Australia director Jeff Antcliff, who is also an Executive general manager at St Vincent de Paul Society Victoria, called the news a relief.
“Charitable Recycling Australia (CRA) is relieved that the Victoria Government has confirmed the commitment to ensuring charities are protected from the impact of the land fill Levy.”
The ‘protection’ will take form of a levy rebate or exemption.
Currently, charities are working with Department of Energy, Environment and Climate Action (DEECA) “to implement the most efficient and practical support for 1 July 2023,” Mr Antcliff said.
In a letter, Minister for Environment Ingrid Stitt said the support will continue in an ongoing manner.
“This new commitment reflects the government’s recognition of the important role that charitable recyclers play in Victoria’s circular economy, and the vital work charities do to support Victorian communities.
“This temporary waiver will be in place while the permanent solution is developed and finalised,” Ms Stitt said.
This announcement comes after the Victorian Government’s proposal to wind back on the waste levy protections for charities from July this year.
Charity shops could have been billed an enormous $1.5 million in an “unfair” tax, which equates to 428,571 meals for those in need according to Omer Soker, chief executive officer of CRA in his open letter to Ms Stitt on 2 May.
Charity shops provide $232 million worth of relief in food, shelter, mental health services, crisis support and wide range of disability and illness support, according to the CRA.
“Without charity shops, your government would need to pay for these services – or let Victorians in need go without essential support,” Mr Soker said in his open letter.
Without the waste levy protection, charity shops would’ve been forced to cut a lot of their vital services to pay tax on waste dumped at their front doors.
Mr Antcliff said at this time an increasing number of Victorians need help.
“Charity shops need certainty in these times of increasing pressures on the community with the rising cost of living.
“We are seeing more Victorians asking for help. As social enterprises we exist to help our communities and causes. The commitment is good news,” Mr Antcliff said.
