Melbourne residents are bracing for an increase in the controversial 'bin tax' amid concerns over rising living costs.

Increased Bin Tax

The City of Yarra plans to boost the existing bin tax by about 30% next year, following its introduction just a year ago. This tax, amounting to $115 on top of standard council rates, has faced criticism for circumventing rate fee restrictions, according to a report by Daily Mail. 

Critics accuse the council of exploiting this separate tax to avoid rate caps, allowing for substantial hikes. According to a report by The Herald Sun, this strategy enables the council to raise taxes without adhering to rate limits.

READ NEXT: Viral: Melbourne Restaurant Owner's Petty BBQ Revenge Billboard for Ex-Girlfriend Sparks Internet Frenzy 

The Yarra City Council Defends the Increase

The Yarra City Council justifies the increase as necessary to cover expenses related to introducing a new kerbside collection bin for food and garden organic materials (FOGO) across approximately 44,000 households.

The new lime green-lidded 120-litre bin will debut this year, with collections slated to begin on July 1.

Council spokespersons maintain that the state government mandates all councils to implement a FOGO service by 2030. The council asserts efforts to minimize implementation costs without compromising service quality or efficiency. 

Several other councils have implemented waste levies, although their increases are relatively modest compared to the City of Port Philip, which raised theirs by 2.7 percent, and the City of Hobons Bay, which saw a 7.5 percent increase.

Based on a recent investigation by Council Watch, it has been found that a significant number of Victoria's 79 councils are including additional expenses in their waste levies in order to bolster their financial standings.

The funds are allocated to support various council services, including street sweeping, drain cleaning, graffiti removal, and tree maintenance.

In December of last year, local government minister Melissa Horne released guidelines that addressed concerns about certain council practices regarding fees.

The Minister expressed that these practices were not in line with best practices, which had a negative impact on public transparency and trust in local government.

READ MORE: Taylor Swift's $4.3 Billion Economy Contribution Made Possible by Swifties Buying Merch