Victorian ratepayers could be hit with higher fees despite a $13 million state government boost for council recycling services.
Stockpiles continue to grow across Australia after a ban on some forms of recyclable waste by China, which had previously accepted swathes of Australia's rubbish.
The funding package will allow the state's councils to continue kerbside recycling collection while they consider longer-term solutions and negotiate better prices for the processing of waste, Environment Minister Lily D'Ambrosio says.
Councils will be provided assistance until the end of June, but beyond that will need to meet any increase in recycling costs.
"We would encourage, during this reset period of four months, for the councils to negotiate really hard with those contractors to get the best price possible," Ms D'Ambrosio said on Friday.
"The reality is some councils will end up having to increase their waste levies."
China now requires cleaner and more processed recyclable material.
Victoria is upgrading its infrastructure to meet those demands but it will take time, the state government says.
An industry taskforce has been established to develop a strategic recycling plan.
A "whole range of options" were on the table, including adopting a container refund scheme that was used in other states, Ms D'Ambrosio said.
Waste management company SKM Recycling, which provides recycling sorting services to councils around Victoria, welcomed the government package.
"It will give some much-needed breathing space for the industry, councils and government to work together on a longer-term solution," a spokesman said in a statement.
"It's vital Victoria has a sustainable recycling industry and all options to secure that need to be considered."
Australian Associated Press
