FAQs

Key reforms in the Bill set out:

• Updated objectives and features of the CDS that build upon the scheme’s success in reducing litter and waste.
• The appointment and functions of a not-for-profit scheme coordinator who would be responsible for the administration, management, and proper operation of the scheme.
• Clear roles and responsibilities for the scheme coordinator including around contract arrangements with scheme participants, scheme cost-setting practices, performance targets, customer service standards, and IT-based payment, auditing, and reporting requirements.
• A framework to recognise eligible material recovery facilities in the scheme.
• A scheme price review mechanism for the Essential Services Commission of South Australia.
• Clear roles for government oversight and Environment Protection Authority fee reform.
• Transitional provisions including a process to be followed to bring existing collection depots into a reformed scheme.

The Bill provides the ability for the Minister to appoint the scheme coordinator following a selection process on terms and conditions determined by the Minister as specified in the instrument of appointment.

The scheme coordinator would be required to be an ‘eligible entity’, which means a body corporate that—

• is carried on other than for the profit or gain of its individual members; and
• is incorporated under the Corporations Act 2011 of the Commonwealth, and
• has a constitution that complies with the prescribed requirements, including a Board of at least 8 directors.

The scheme coordinator Board must include the following members:

1. a chair who is independent of the beverage and waste industries, and approved by the Minister
2. at least 1 director representing minor beverage producers (producing less than 300,000 beverage products per year) based in South Australia 
3. at least 1 director representing a major beverage producer
4. at least 1 director representing a container refund point operator association in South Australia
5. at least 1 director who has expertise in recycled commodity markets
6. at least 1 other director who is nominated by the Minister
7. at least 2 directors who have legal or financial qualifications and experience and are independent of the beverage and waste industries. 

Once appointed, the scheme coordinator will have prescribed functions to ensure accountability and transparency around elements such as price setting, financial flows, container flows, scheme promotion, auditing, and reporting. 

The proposed functions of the scheme coordinator, as set out in the Bill, include:

• entering into, and managing, supply agreements with beverage suppliers to ensure contributions are made to cover scheme costs
• determining the scheme price payable under supply agreements
• making recommendations to the EPA on eligible beverage container applications
• maintaining and expanding a network of container refund points and entering into, and managing refund point agreements
• entering into and managing, material recovery agreements 
• ensuing arrangements are in place for container collection from container refund points and for the sale of material to reuse or recycling markets 
• approving donation partners
• ensuring audit arrangements are in place
• raising and maintaining public awareness of the scheme
• receiving and dealing with complaints from scheme participants and members of the public, and
• reporting against performance targets. 

Consistent with most CDSs across Australia the scheme coordinator would be required to set and publish the scheme price for each container material type for a specified period.

The scheme price covers the refund amount, container refund point handling fees, recovery amounts payable under material recovery agreements, scheme coordination costs, and EPA compliance costs minus any revenue the scheme coordinator receives from the sale of material into recycling markets.

In response to a long history of pricing disputes between participants in the current scheme, the Bill proposes a pricing review mechanism for the Essential Services Commission of South Australia that would be funded by the scheme.

Yes.

The Bill proposes a compliance fee mechanism whereby the EPA can recover the administrative costs of its functions from the scheme coordinator. This approach would enable the removal of application fees for category B containers (recyclable containers), and application and annual fees currently charged to collection depots.

No.

The Bill does not change what containers are eligible for a 10-cent refund. 

The current scheme exemptions for glass wine and spiritous liquor bottles provided for in section 66 of the Environment Protection Act 1993 will be carried over to the updated Regulations to join the current exclusions to the definition of beverage and container in the Regulations. Clauses 6, 7 and 8 of the Bill will amend sections 65, 66 and 67 of the Act to consolidate the exclusion of beverages and containers in the Regulations.