WYNDHAM Council chief executive Kerry Thompson has warned ratepayers they could face higher landfill charges with the introduction of the federal government’s carbon tax on July 1.
Although it’s still working through financial modelling to determine the exact impact of the tax on its budget, Ms Thompson said landfill operators would be required to pay for the carbon they emit.
She said it was not yet known if prices for the council’s waste services would have to be revised to reflect the new tax, but felt it would be a liability for the council.
However, Climate Change and Energy Efficiency parliamentary secretary Mark Dreyfus said not all councils and landfill operators would be impacted by the carbon tax.
“The vast majority of landfill sites will not be subject to the carbon price,” he said.
“Those that are can generate significant income through the reduction of methane pollution in particular. Landfill operators and councils will be able to earn and sell carbon credits by destroying methane or converting it into electricity.”
Ms Thompson also anticipated the tax to indirectly affect the council through increases in electricity prices and manufacturing costs.
It has predicted electricity prices would jump about 10 per cent with the introduction of the tax, with the cost of building materials expected to increase by about 2 per cent.
She said the forecast price rises were a major factor in the council’s move to improve its energy efficiency.
“Wyndham has recently applied for a significant grant to improve the energy efficiency of the aquatic centre in Derrimut Road,” she said.
“Further, Wyndham City is currently engaging in and investigating a number of activities which promote renewable energy, plus energy-efficient upgrades to our buildings and street lighting infrastructure to reduce the impact on the carbon tax.”
