Summary of Pricing and Contribution Approach Changes

ComponentCurrent ApproachNew ApproachBenefits of New Approach for suppliers

Container Pricing

Monthly variable price per material type with true-ups

Fixed price per material type for
12 months (monitored quarterly)

  • Price certainty
  • Removes volatility

Supplier Declares Actual Volumes

15th of the month for previous month’s volumes (eg. March, reported by
15 April)

15th of the month for previous month’s volumes (eg. supplier volumes delivered in March reported by 15th April)

  • No change to current process for suppliers

Invoice Date

1st of the month
(or next business day)

21st of the month
(or next business day)

  • Invoice is issued after supply volumes are reported

Invoice Calculation

Forecast scheme costs
and forecast supplier
market share

Trued-up against actual scheme costs and actual market share for previous invoices.

Invoice based on actual supply volumes in arrears.

Supply Volumes x Fixed Container Price (eg. March volumes x Fixed Container Price = invoice issued on 21 April to fund May scheme costs)

  • Reduced complexity
  • Improved certainty

Payment Terms

7 days

7 days

  • Aligns with CDS payment terms in other jurisdictions
  • New invoice date based on fixed price and actual volumes to improve cashflow management

Small Supplier* Option

Nil

Option to opt in for
quarterly invoicing

  • Reduced administration
  • Additional flexibility for cashflow management for small business

True-Ups

Reconcile adjustments in supply and market share which may impact any month since scheme commencement

No monthly true ups.

Annual true up as part of annual price adjustment.**

Suppliers adjusting their reported supply volumes will be individually invoiced for the changed
amount with no impact to any other supplier.

  • Reduced complexity
  • Reduced administration
  • Increased certainty

New Supplier Arrangements

New suppliers are required to make contributions, including any historical payments back to the commencement of the scheme, based on their market share by material type. This results in a true-up adjustment for all suppliers of the same material type.

New suppliers are required to make contributions, including any historical payments back to the commencement of the scheme.

The supplier is required to pay
the material price for any historical contributions based on the final price at the time of transition or the new fixed price by total supplier volumes delivered in the period.

  • No monthly true-ups
  • Annual true up as part of annual price adjustment.**

*Small suppliers: that supply 300,000 or less containers

**Any surplus or shortfall of funds in the scheme payments account each year, as a result of corrections to supply volumes or where forecasts have varied from actuals, will be adjusted during the price setting process for the following year and could result in a higher or lower price.


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
Glass 14.80 14.72 12.49 18.12
Pet 11.82 11.75 11.10 13.15
HDPE 7.40 7.74 5.17 11.34
Aluminium 13.25 12.46 10.31 18.16
Liquid paperboard 5.08 4.44 3.27 7.24
Steel 4.12 3.62 2.53 4.48
Other plastics 5.57 4.10 1.74 10.06
Other materials 10.44 7.46 1.72 31.46
Weighted average 12.70 12.32 N/A N/A