The Tyre Product Stewardship Scheme Explained

If you have ever wondered what stops Australia’s half-a-million tonnes of annual end-of-life tyres from simply being dumped, the stewardship scheme is a big part of the answer. This guide explains who runs it, how the levy and accreditation work, and what the TSA mark means when you choose a tyre shop — then links to where to dispose of old tyres and how tyres are recycled.

What is the Tyre Product Stewardship Scheme?

Product stewardship means everyone who profits from a product — makers, sellers and users — shares responsibility for managing it at the end of its life. The Tyre Product Stewardship Scheme applies that idea to tyres. It is run by Tyre Stewardship Australia (TSA), a not-for-profit set up by the tyre industry, and it is voluntary rather than mandated by law. Its goal is to increase the amount of recycling and the use of products made from recycled tyres, rather than just collecting a fee.

How does the 25-cent levy work?

Participating tyre importers and brands pay a levy of 25 cents per equivalent passenger unit (a standard car tyre; larger tyres count as more units). Importantly, this levy is not designed to directly pay for recycling your specific tyre. Instead, TSA uses the funds to find and promote new markets and uses for tyre-derived products — for example, funding research into crumb-rubber roads. Think of it as investment in demand for recycled rubber, not a disposal pre-payment.

This 25-cent levy is separate from the per-tyre recycling fee a shop may add to your invoice when they take your old tyres away — see the tyre disposal levy explained.

What does accreditation mean, and why does it matter?

Businesses across the whole tyre supply chain can become TSA-accredited: importers, retailers, collectors, recyclers, fleet operators and local governments. To be accredited, a business must commit to environmentally sound handling of used tyres and to dealing only with other accredited businesses down the chain. That chain-of-custody is the point — it means a tyre handed to an accredited retailer is far less likely to be dumped, stockpiled or sent somewhere unaccountable. Retailers can typically join at no cost.

For you as a driver, choosing an accredited store is the simplest way to be confident your old tyres are handled responsibly.

Who oversees the scheme?

Because the scheme involves competing businesses agreeing to common conditions, it needs approval from the Australian Competition and Consumer Commission (ACCC). The ACCC has re-authorised the scheme’s arrangements for a further six years. The ACCC is clear that authorisation is not an endorsement — it has noted there is room for more progress, particularly in getting mining companies and vehicle importers to participate, and has signalled governments may consider regulation if voluntary participation does not improve.

Is the voluntary scheme actually working?

It has clearly helped — recovery rates are high (around 66% of end-of-life tyres) and the domestic recycling rate has risen over recent years. But because it is voluntary, participation is uneven, and genuine recycling (as opposed to burning tyres for energy) is still only about a quarter of recovered volume. That gap is why some in the industry are calling for mandatory product stewardship and government procurement rules that favour recycled-content products.

What does the scheme mean for you as a buyer?

Beyond handling your old tyres, the scheme shapes the wider market in two useful ways. It funds the development of recycled-rubber products — so the crumb rubber from your worn-out tyres has somewhere to go — and it rewards businesses that handle waste responsibly. When you choose an accredited retailer, you are quietly supporting that chain. The scheme also connects to the broader environmental questions around tyres, from tyre microplastics to whether eco tyres are genuinely better. Understanding the tyre label’s fuel and wet-grip ratings helps you buy longer-lasting, lower-impact tyres in the first place — the single biggest thing most drivers can do.

Frequently asked questions

Do I pay the 25-cent levy?

Not directly as a separate line — it is paid by importers at the wholesale level and is built into tyre pricing. The per-tyre fee you may see on an invoice is a separate recycling/disposal charge from the fitter.

Is the scheme run by the government?

No. It is an industry-led, voluntary scheme run by Tyre Stewardship Australia. The government’s role is through the ACCC authorisation and broader waste and export policy.

How do I know if a tyre shop participates?

Look for Tyre Stewardship Australia accreditation, or check the TSA directory of accredited businesses. Accredited retailers commit to responsible handling of your old tyres.

Why isn’t the scheme mandatory?

It was established as a voluntary, industry-driven initiative. Some stakeholders argue a mandatory scheme would lift participation — especially among mining and vehicle sectors — but that would require new regulation.

What is the difference between the stewardship scheme and tyre recycling?

The scheme is the governance and funding framework that encourages responsible handling and builds markets for recycled rubber; recycling is the physical process of turning old tyres into new products. The scheme exists to make more and better recycling happen, but it does not process tyres itself — accredited collectors and recyclers do that.