First Suppliers

Scheme Pricing from 1 February 2025 – 31 July 2025*

From February 2025, there will be a price increase for First Suppliers in Victoria.

The amount a First Supplier contributes is based on the number of eligible containers each First Supplier supplies into Victoria.

The cost of running return points and recycling containers is factored into the scheme price. As the number of containers sent for recycling continues to grow, there will be an additional cost of 3.53 cents per container supplied into Victoria from February 2025.

Scheme pricing for each material type is outlined below:

* First Suppliers should also refer to part 5 of the Scheme Pricing and Contributions Methodology (SPCM).

** As notified to First Suppliers on 20 December 2024, the SPCM will be updated, effective 30 May 2025, and published on this website and the CDS Vic website.

Please contact [email protected] if you did not receive a copy of the 20 December 2024 notification.

The updates to the SPCM on 30 May 2025 will not change the above Scheme pricing.

Pricing review cadence

Pricing is reviewed on a 6 or 12 monthly cadence. VicReturn has delayed the price increase for 15 months to reduce the risk of the scheme holding surplus funds. Any surplus funds accumulated going forward, will reduce or delay any potential future price increase.

The 1 August 2025 price increase (if applicable) will be updated here on 1 April 2025.

Q&As – Supplier Contributions Approach: pricing and contributions

How is the scheme price calculated?

The fixed pricing has been developed based on a considered methodology and includes the following information:

• historical supplier volumes and estimated growth in line with population growth
• historical and projected growth in redemptions through the network of return points
• historical and projected redemptions through material recovery facility operators (kerbside collections)
• network operator handling and processing fees per container and for each material type
• fixed costs including scheme coordinator and compliance fees

Any shortfall or excess in Scheme liquidity at the end of a pricing period will be carried forward and taken into account in determining the Scheme Contribution by Material Type in following pricing periods.

Please refer to Section 5 of the Scheme Payments and Contributions Methodology (SCPM) for further information.

Is this an arrears approach?

The system is based on an arrears approach by using actual volumes of containers supplied and declared by each supplier to calculate the monthly invoice. Contributions are required to fund scheme operations in the following months.

What is the registration cost payable per container?

There will be no separate container registration fee, this cost will be included in the scheme price per container material type.

How is pricing determined and how much is it increasing?

The cost of running return points and recycling containers is factored into the scheme price. As the number of containers sent for recycling continues to grow, there will be an additional cost of 3.53 cents per container supplied into Victoria from February 2025.

The scheme price was set lower initially to provide certainty to the industry while container return volumes built over the first year of the program. The Victorian scheme has grown faster than any other state at the same point in time and has exceeded the original pricing forecast.

Why is the price going up?

When starting a scheme like this it is difficult to predict how popular it will be. Since launching on November 1 last year, the Container Deposit Scheme has been extremely popular and return rates continue to rise. The scheme price was set lower initially to provide certainty to the industry while container return volumes built over the first year of the program.

The Victorian scheme has grown quickly and has exceeded the original pricing forecast. Strong growth in container volumes returned through the scheme to date has meant that we are on par, if not leading, other states in terms of comparative return rates for this stage of the scheme.

Strong return rates, coupled with higher-than-expected Material Recovery Facility (MRF) numbers and lower-than-expected beverage volumes have driven an increase in costs over the first year of the scheme.

How often is pricing reviewed?

Pricing is reviewed on a 6 or 12 monthly cadence. VicReturn has delayed the price increase for 15 months to reduce the risk of the scheme holding surplus funds. Any surplus funds accumulated going forward, will reduce or delay any potential future price increase.

Historical pricing

Scheme Pricing from 1 November 2023 – 31 January 2025