The future success of Victoria’s Container Deposit Scheme hinges on improving transparency of return rates, increasing the refund to 20c, phasing out inconvenient refund points and including wine and spirit bottles, our newest report discovers.

Total Environment Centre’s assessment of the first year of the Victorian Container Deposit Scheme, released today, concludes the scheme lacks fundamental transparency with Government refusing to release zone recycling rates, from the experimental three zone system run by different companies. Victoria’s container deposit scheme (CDS Vic) commenced on 1 November 2023, with TEC reviewing the progress of the scheme in May 2024 after 6 months, and now 12 months after its initiation. The scheme is coordinated by Vic Return and has three zone operators (ZO) –Tomra/Cleanaway West, Visy North and Return-it East who manage collection points. 

Year One by the Numbers: What works and What doesn't?

Here are some key highlights from the scheme’s first year:

• Over 1 billion containers returned – a good start.
  
• Community groups benefiting – hundreds of schools, charities and sports clubs have signed up for donation barcodes.
• 600+ return points now in operation.

However, over the counter return points in shops have limited opening hours; many don’t accept all containers; and refuse to handle containers when busy with their normal duties such as serving customers.

The report details the returns processed by each operator between November 2023 and June 2024 – the only data apparently accidentally given to TEC - with Tomra/Cleanaway recovering significantly more than both other operators.  An FOI (Freedom of Information) request for zone returns after June was rejected, with the government deciding they will now remain secret.

Total Environment Centre Director, Jeff Angel, said "while the population in each zone was similar, the best performing zone (Tomra/Cleanaway) had a smaller metropolitan population and many more reverse vending machines, meaning the type of return point affects how many people access and use it."

“Reverse vending machines generate the highest returns as they are accessible at most times, every day.  One zone operator was able to install automated return points faster than the other two zones, which could explain why they are recovering more than the other two zone operators. Time will tell if the other two zones catch up, but only if the Government tells us the return rate per zone,” Mr Angel said.

“Without detailed data from the Victorian Government, which they refuse to provide, it is impossible to truly know how each zone is performing and whether they are properly servicing Victorians who are paying for it.”

Our Key Recommendations

The first year of Victoria’s CDS shows more work is needed, and the next 12 months will be critical in addressing gaps and scaling the system effectively. TEC will continue to monitor the scheme closely, advocate for improvements, and work with communities to ensure it delivers on its full environmental potential.

The Twelve-Month Review makes four key recommendations :

1. The Government should conduct an independent and public review of the three-zone operator arrangement in 2026.
2. Increase the refund to 20c and include glass wine and spirit bottles in the scheme.
3. Review best practice annual reporting to inform the 2024-25 Annual Assessment and Statutory Reports to improve credibility and transparency.
4. Action the outstanding recommendations from the Six-Monthly Report and set a formal target.