A supplier is any business providing beverages in containers in Victoria, through the course of business or otherwise. This includes manufacturers, distributors, wholesalers, and retailers.
If the business is considered a ‘first supplier’ it must register the containers and enter a supply agreement with the scheme coordinator, VicReturn. You’ll find detailed information on whether you as a manufacturer, distributor, wholesaler, or retailer are considered a first supplier here.
There are some situations where a contract bottler will typically be identified as a First Supplier.
Contract bottlers may be first suppliers if they are in operational control of beverages that they are bottling, for example if a supplier can order the bottled beverages directly from the contract bottler.
The contract bottler would not generally be considered a First Supplier in circumstances where they are providing bottling services for a third party, and they do not have the rights to sell the product to another entity or otherwise deal with the product.
Where a retailer engages a contract bottler to produce their private label beverages, the retailer themselves would likely be considered the first supplier.
Contract bottlers who supply their own beverages in their own containers would also be considered First Suppliers for those containers.
A contract bottler may also be considered as first supplier for a once-off product test run or promotional item that is produced, for example for a company that does not ordinarily supply beverages to market. The contract bottler and the company should document their agreed arrangement for being the First Supplier and clearly outline the expiration date for the arrangement.
If in doubt, contact Recycling Victoria for guidance via [email protected]
First you need to check whether you would be considered a supplier. You can view this information on our Getting Started page.
If you are required to enter into a supply agreement with us, you need to do the following:
The Supply Arrangement is a contract between each entity that is a supplier (as defined under the Circular Economy (Waste Reduction and Recycling) Act 2021) and scheme coordinator. It also consists of two ancillary documents which each such entity is also required to enter into, the First Supplier Side Deed and the Accession Deed Poll. The terms of each of these documents have been approved by the State.
As a first supplier, you are required to:
It is an offence under section 110 of the Act to supply or offer to supply a beverage in a container without these in place.
Information on data requirements is supplied in the Data Specification Pack.
No, if you are a First Supplier supplying eligible containers in Victoria, you are required to sign a Supply Agreement with VicReturn and contribute to the Scheme. It is an offence to supply an eligible container in Victoria without entering into an agreement with VicReturn, and eligible containers must be registered via the Business Portal: B2B Portal. Please email us at [email protected] and we will support you with these requirements.
A supplier who provides the first supply of beverages in Victoria in a suitable eligible container will need to enter into various agreements with VicReturn, the scheme coordinator.
The Circular Economy (Waste Reduction and Recycling) Act 2021 as well as the associated regulations highlights that If you are a first supplier there is a requirement for a supply agreement with the scheme coordinator, VicReturn.
From 1 November 2023, section 110 of the Act states that it will be an offence for a person who is a first supplier to supply a beverage in a container to any other person unless –
Suppliers will need to enter into the following agreements:
Suppliers should seek independent legal advice in relation to the terms of the Supply Arrangement, Supplier Side Deed and/or Accession Deed Poll.
This is not possible. The pro-forma copies of these documents have been approved by the State and are identical for all suppliers. You will not be able to negotiate departures to the terms of these documents.
The Supply Arrangement is an agreement between the supplier and VicReturn which requires the supplier to:
Monthly Data:
Annual Data:
Supplier Contributions:
Access:
Scheme Integrity
The Scheme Coordinator must act fairly and must not unreasonably discriminate, against or in favour of any Scheme Participant in entering into or performing its obligations under or enforcing the terms of this Agreement or the other Scheme Agreements.
The Scheme Coordinator must take all reasonable steps to minimise and prevent fraud in connection with the Scheme. Each party must not provide any information that the party knows is false or misleading in a material particular.
The Scheme Coordinator and the First Supplier must comply with the Act, the Regulation and the Scheme Agreements
Invoicing
The scheme coordinator must provide a monthly invoice (or quarterly invoice for small suppliers at their request), which has either provided in the document or attached as supporting documentation, the calculations by material type for payment to the scheme coordinator.
Auditing
The Scheme Coordinator may engage an independent auditor to, at any time, audit (including a real-time audit of any applicable electronic systems for deliveries, supply chain logistics, payments, collections and verification) or review data provided by the First Supplier under this Agreement to determine if that First Supplier is complying with:
Reporting
According to section 7.5 of the Supply Agreement, the Scheme Coordinator must prepare a report at the end of each financial year, within 60 Business Days of year end.
The following information must be included, as verified in accordance with the Scheme Coordinator Agreement:
The Supplier Side Deed:
There is no need for suppliers to enter into any additional documents.
The supplier is obliged to continue to comply with the terms of the Supply Arrangement on its original terms irrespective of a novation to the State or its replacement scheme coordinator.
After the novation, the State or its replacement scheme coordinator is responsible for carrying out all of the original obligations of the scheme coordinator.
The Common Dispute Deed provides a process for determination of certain disputes that may involve first suppliers, the scheme coordinator, network operators and the state.
The intention of the Common Dispute Deed is to provide a process for the determination of a Common Dispute arising under one agreement and to bind related parties and the Scheme Coordinator under other agreements to the determination, without the need to have the dispute determined again and separately under those other agreements.
The Accession Deed Poll is a mechanism by which first suppliers become party to the Common Dispute Deed. First suppliers are required to provide the scheme coordinator with an executed Accession Deed Poll when entering a Supply Agreement.
The fixed pricing has been developed based on a considered methodology and includes the following information:
Any shortfall or excess in Scheme liquidity at the end of a pricing period 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.
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.
The scheme costs by material type have been published by VicReturn and are available via our Pricing Guide.
VicReturn will also conduct six monthly reviews of pricing or as required in the event there are significant variations to what was forecasted.
There is no separate container registration fee, this cost is included in the scheme price per container material type.
Invoices are issued monthly. These invoices must be paid within 5 Business Days after the invoice is issued in accordance with the supply arrangement.
Small suppliers (that supply 300,000 or less containers per annum) can apply to move to quarterly invoices.
VicReturn is a not-for-profit and as such does not make a profit on the scheme.
The likely reason you received a forecasted invoice is that no volumes were submitted (by the 15th of the following month of supply) via the Business Portal: B2B Portal.
Please log into the Business Portal: B2B Portal to submit volumes for eligible containers supplied into Victoria by material type and month.
If you did not supply any eligible containers into Victoria;
Please log into the Business Portal: B2B Portal and submit ‘0’ volumes for the month(s) invoiced.
If you supplied eligible containers into Victoria during this period:
Please log into the B2B portal and submit the actual volumes for the month(s) invoiced and pay the forecasted invoice within the payment terms. Any over or underpayment will be corrected on the following invoice.
Once the volumes are submitted, an adjusted invoice will be issued in the next period to reflect the changes.
First Suppliers wishing to exit the Scheme, please follow the steps below:
First Suppliers will need to declare, that they:
The selection of First Suppliers to participate in the Victorian CDS Supplier Audit Program takes place towards the end of each quarter. The First Suppliers selected for an audit will be asked to assist with the audit in the subsequent quarter. Any First Supplier who is registered with the Victorian CDS has the possibility of being selected for an audit – based on a stratified sampling methodology.
If a First Supplier has been selected to be audited, the First Supplier will receive a notification from VicReturn’s independent auditor. It is essential for First Suppliers selected for an audit to participate in the audit program. This requirement is specified in clause 7.4 of the Supply Agreement that First Suppliers sign when registering for the Victorian CDS, which permits VicReturn’s appointed auditor to inspect any records relating to the First Supplier’s participation in the Victorian CDS.
A First Supplier’s participation in the audit program is important for providing assurance over the integrity of the Victorian CDS and helping to ensure its ongoing success.
Keeping complete and accurate records throughout the year helps make the audit process as quick and efficient as possible.
Here are some suggestions we can offer about preparing for the audit once you receive the audit notification:
Yes. VicReturn engages an independent auditor to ensure compliance with the First Supplier obligations under the Supply Agreement (First Supplier Supply Agreement).
Please expect to receive contact from an auditor during the term of your Supply Agreement. VicReturn aims to coordinate with other State and Territory container refund schemes, so that First Supplier audits are conducted in parallel with those other State and Territories.
Please log onto the Business Portal: B2B Portal, then click on More Filters, to see the Scheme ID number, starting with VM.
Please email us at [email protected] . We will update our records.
Please email us at [email protected] and provide the name and email address of the person who needs access. We will provide them access to the Business Portal B2B Portal
