Illegal tyre dumping is costing Australian councils millions of dollars annually, prompting renewed calls for the Federal Government to introduce a mandatory tyre product stewardship scheme.

Millions in Cleanup Costs

According to research commissioned by Tyre Stewardship Australia (TSA), illegal tyre dumping cost local governments an estimated $6.5 million in 2022–23 alone. Approximately 300,000 tyres were retrieved from roadsides and bushland at an average cost of $22 per tyre—nearly triple the typical $7.60 disposal fee paid by consumers at retail outlets.

While Australia collects nearly 90% of passenger tyres through formal systems, the remaining 10% represents millions of tyres that are illegally dumped or stockpiled, creating environmental, financial, and public safety risks.

Lina Goodman, CEO of TSA, describes the issue as organised waste crime rather than isolated misconduct. Rogue operators, often posing as legitimate recyclers, collect tyres for cash and dispose of them illegally in bushland, national parks, and remote areas.

Impact on Councils and Communities

Examples of local government costs illustrate the scale of the burden:

  • City of Brimbank (VIC): $86,000 spent in 2024 on tyre cleanups
  • Wyndham City Council (VIC): Approximately $6,000 per month
  • Isla Gorge (QLD): $100,000 in crane hire to remove 200 tyres
  • Macquarie Pass National Park (NSW): Over 3,000 tyres dumped; $200,000 cleanup cost

In the Macquarie Pass case, the offender was fined $60,000—significantly less than the total remediation cost.

Councils argue that ratepayers effectively pay twice: once at the point of tyre replacement and again through municipal rates used to fund cleanups.

Market Distortion and Industry Harm

Legitimate tyre collectors and recyclers report losing up to 40% of business to illegal operators who undercut compliant service providers by avoiding licensing, transport, and processing costs.

This market distortion:

  • Undermines responsible recyclers
  • Discourages infrastructure investment
  • Weakens end-market development
  • Reduces investor confidence

Additionally, tyres recovered from illegal dumps are often contaminated with soil or chemicals, limiting their suitability for high-value recycling and increasing landfill dependency.

Voluntary Scheme at Its Limit

TSA currently operates a voluntary Tyre Product Stewardship Scheme authorised by the Australian Competition and Consumer Commission (ACCC). However, after 11 years, TSA leadership argues voluntary measures are insufficient to eliminate criminal leakage from the system.

Goodman asserts that only a mandatory national scheme can:

  • Remove financial incentives for illegal dumping
  • Ensure only accredited, audited operators manage tyres
  • Secure stable funding for recycling infrastructure
  • Provide regulatory certainty for long-term investment

International Models Demonstrate Effectiveness

Mandatory stewardship schemes in other jurisdictions have shown measurable success:

  • British Columbia, Canada: Illegal tyre dumping virtually eliminated
  • New Zealand: 47% reduction in illegal dumping within the first year of its mandatory scheme

Such frameworks typically apply Extended Producer Responsibility (EPR) principles at the point of import or manufacture, ensuring lifecycle funding and traceability.

Federal Inquiry Underway

In November 2025, the Standing Committee on Industry, Innovation and Science launched a Parliamentary Inquiry into the Australian tyre industry’s role in the circular economy. The review is examining:

  • Resource recovery performance
  • Development of recycled material markets
  • Systemic solutions to illegal dumping

TSA and numerous local councils have made submissions urging decisive federal intervention.

Economic and Environmental Stakes

Beyond environmental protection, proponents argue the issue is fundamentally economic:

  • Public funds diverted from infrastructure to cleanup
  • Lost opportunity to expand domestic tyre recycling
  • Reduced competitiveness for compliant businesses
  • Missed job creation in crumb rubber and advanced manufacturing

Advocates maintain that without mandatory stewardship, illegal dumping will continue to undermine both environmental goals and industry development.

Still, the core issue remains whether Australia transitions from a voluntary model to a regulated national product stewardship scheme to eliminate waste crime, stabilise markets, and unlock circular economy investment.

Article source: Waste Management Review magazine.