The new, simplified Approach
Following extensive industry engagement, the new approach has been specifically designed to remove price volatility, simplify invoices and reduce complexity.
The new supplier contributions approach uses actual supply volumes and a 12-month fixed price per material type to determine each supplier’s contribution, helping suppliers by delivering:
- a simpler approach to invoicing
- reduced complexity and administration for all participants (no monthly true ups)
- certainty over container pricing for a 12-month period
- improved cashflow management
- improved alignment with container deposit schemes in other jurisdictions
- no need for an upfront loan and associated servicing costs to manage the transition to the new system.
New fixed pricing
Table 1 New supplier contribution approach fixed pricing (Feb 20 – Jan 21) compared with current approach (all pricing is ex GST)
|New approach||Forecast container prices if no change is made to supplier contribution approach|
|Material type||12-month fixed price||12-month average price||Minimum price||Maximum price|
What does this mean for you?
EFC will implement fixed pricing for each material type from the February 2020 invoice with the full transition to the new approach from the April 2020 invoice.
Download the Industry Briefing Paper for detailed information on the new supplier contributions approach including the timeline to transition, what you need to do to prepare, and detailed explanation of the changes and benefits.