Cleanaway appeals landfill levy ruling, flags $12.3m cash impact

The news: Cleanaway Waste Management has lodged an appeal against a Victorian Supreme Court decision regarding an historical $6.9 million landfill levy underpayment at its Melbourne Regional Landfill in 2018.

The context: This ruling follows further Supreme Court claims for underpayments of $4.7 million in FY19 and $7.2 million in FY22 relating to similar production levies, in addition to the disputed $6.9 million amount.

Cleanaway said it will recognise a $27.5 million provision covering the FY18, FY19 and FY22 levies, assessed costs and accrued interest, which will be treated as an underlying adjustment.

The company expects a cashflow impact of approximately $12.3 million in FY27, reflecting payment of the disputed FY18 levy amount and associated costs and interest.