The shift to eco-modulated levies

BSC extends our thanks to our accredited importers and retailers for their active engagement in the Scheme Review process. While there were questions and suggestions for improvement on the detail, BSC was pleased with the high level of support for the proposed approach.   

As a result of feedback, BSC will move forward with the implementation of eco-modulated levies, which are designed to enhance circularity outcomes over time. While the levy rates for FY 2026 are still the subject of ongoing consultation and ACCC re-authorisation, the concept of eco-modulation was strongly supported and as such will form part of B-cycle’s re-authorisation.    

In advance of this and recognising that systems changes take time, importers and retailers are being asked to begin preparing their systems as soon as possible to report on different battery chemistries. This change is expected to take effect on July 1, 2025. BSC will be reaching out to importers soon to provide guidance and assistance.  

Please email contact@bsc.org.au with any questions.  

Background on the Scheme Review process and consultations

The consultation process involved forums in Brisbane, Melbourne and Sydney, industry meetings, as well as written submissions and online surveys, gathering significant input to refine the policy settings with over 350 people attending virtual and face to face forums. A number of adjustments are being pursued, following endorsement by the BSC Board with additional consultation with Scheme participants planned for October.   

Key adjustments

Eco-modulated levies: As described above 

Expanded Scope: 

There will be continued exploration and phased rollout of an expanded scope for B-cycle, including further consultations with industry and a request for government funding to include vapes in the Scheme.  

Full Cost Recovery: 

A full cost recovery model will be pursued, meaning the levy will be designed to fully cover the cost of managing end-of-life for all battery types, with the exception of facility infrastructure. The BSC will advocate for government investment to support infrastructure development. The intent of a full cost recovery model aims to be free of charge to battery consumers. 

Collection and Sorting Rebates: 

Adjustments include increasing the incidental receiver rebate to allow it to compete with landfill costs and clarifying that collection rebates do not include containers.  Instead, participants will be able to access a dedicated container grant.   

Network Diversification: 

Feedback indicated that the new approach would encourage network diversity, but also identified a role for government regarding investment in innovation, recycling infrastructure, and tax incentives for the recycling sector. 

Regulatory Reform: 

A clear message emerging from the consultation is the importance of regulation for the success of B-cycle 2.0.  At an Environment Ministers Meeting in June this year, Ministers agreed to accelerate battery stewardship. A draft regulatory impact statement is being prepared by governments, alongside model legislation. BSC has prepared draft Rules for consideration by governments, focused on compelling participation in voluntary accredited schemes, targeting free riders.   

Scheme Review Steps

Complete or underway 

• Board endorsement of the revised approach. 

• Communication with importers regarding the transition to eco-modulation. 

• Consultations with collectors and recyclers on rebate adjustments. 

• Submission of the proposed Stewardship Rules for consideration by the government. 

September 

• Submission of the proposed Battery Rules to address free riders, for consideration by government  

• Finalisation of cost structures to ensure equity and model finalisation. 

• Industry consultations and webinars for further engagement. 

October – November 

• Finalise the model for Board approval 

• Application for re-authorisation. 

Stay connected with B-cycle socials