Cleanaway Waste Management Limited (ASX: CWY) announced today a Victorian Supreme Court decision regarding an alleged historical underpayment of landfill levy at its Melbourne Regional Landfill for the 2018 financial year. Cleanaway Waste Management Limited is Australia’s leading sustainable waste management, industrial and environmental services company, operating across more than 350 locations in Australia, New Zealand, and the Middle East, managing Australia’s largest waste and industrial services fleet. The Supreme Court has ruled in favour of the Environmental Protection Authority (EPA) concerning an alleged landfill levy underpayment amount of $6.9 million for FY18.
The proceedings were initiated by the EPA to recover what it claimed was an underpaid landfill levy on materials Cleanaway purchased from the adjacent Boral quarry, which were used in its landfill operations. Cleanaway had defended the action, arguing that the type of product acquired from Boral should not be classified as ‘waste’ to which landfill levies would apply. Despite Cleanaway’s defence, the court’s ruling supports the EPA’s position.
Beyond the FY18 matter decided today, the EPA has conducted further audits covering the 2019 and 2022 financial years. These audits have indicated additional alleged underpayments related to similar products, amounting to $4.7 million for FY19 and $7.2 million for FY22. It is important to note that these particular amounts were not the subject of the Supreme Court proceedings concluded today. All these alleged underpayment figures are stated before any potential costs and interest.
Cleanaway is currently reviewing the Supreme Court’s decision. The company has a period of 42 days to determine whether it will lodge an appeal against the ruling. The announcement, authorised for release by the Chairman, further noted that additional details regarding these proceedings can be found in Note 33 of Cleanaway’s FY25 Financial Report.
