Victoria’s Container Deposit Scheme (CDS Vic) commences on 1 November 2023. As of today, First Suppliers (beverage manufacturers and importers) have been advised of the scheme price per container.
Under Victoria’s Container Deposit Scheme, First Suppliers share responsibility for the sustainable management of their containers. As with schemes in other states, First Suppliers pay for the cost of operating the Scheme to recover eligible containers.
Victoria’s new Container Deposit Scheme (CDS Vic) will mean Victorians can access a 10- cent refund for every eligible can, carton and bottle they return.
South Australia created the first modern CDS in 1977. After a long gap, the Northern Territory scheme started in 2012 before a succession of states followed. Victoria and Tasmania are the last to implement it in 2023.
Jonathan Russell, former Head of Policy & Advocacy, Retail Drinks Australia gave advice to liquor retailers in Drinks Trade magazine saying:
“Retailers can help by providing customers with information about their local container return options. Listings at the point of sale or signage to promote a CDS scheme app with ‘find nearest return point’ features are simple solutions to raise awareness. Some stores and venues may have the means to facilitate over-the-counter returns or host a reverse vending machine.
“Done well, container deposit schemes are a tool for meaningful improvements in resource management, and operating costs can stay relatively low. But success relies on more widespread community participation. The more industry does to promote CDS to customers, the lower the overall administrative burden will be, and sustainability benefits will be maximised,” concluded Russell.
VicReturn sets the Scheme price, invoices First Suppliers and makes payments to Scheme participants to enable the collection of eligible containers.
The costs of running the Scheme will change over time as the Scheme is established and Victorians take up the opportunity to get cash back.
VicReturn will provide the market with sufficient notice of changes to container pricing as the Scheme matures.
CDS Vic’s costs (ex GST) per container for First Suppliers will start at 11.05c for aluminium, 11.40c for glass, 11.15c for HDPE, 11.15c for PET and 11.50c for LPB, and 11.10 cents for other materials.
These prices will be reviewed and updated by VicReturn as required to ensure that the cost of running the Scheme is covered.
“The cost per container for First Suppliers strikes a balance between making sure there are enough funds to pay Scheme costs, including providing the 10-cent refund per container, while keeping the costs as low as reasonably possible for First Suppliers,” said VicReturn CEO, Jim Round.
