TL;DR: The tyre disposal levy on your fitting invoice is a small charge — commonly around $1–$5 per tyre as a 2026 guide — that covers your fitter collecting, storing and sending your old tyres for recycling. It is legitimate, not a rort: every used tyre has to be handled responsibly to keep it out of landfill and illegal dumps. It is separate from the industry’s national Tyre Stewardship Australia levy paid by importers.

What is the tyre disposal levy?

When you buy new tyres, your quote will usually include a line called something like “tyre disposal”, “environmental levy”, “recycling fee” or “EPA levy”. It’s a per-tyre charge — as a guide, roughly $1–$5 each in 2026, though it varies by store and state — that pays for what happens to the four (or five) old tyres you leave behind. Those tyres don’t vanish: the fitter has to store them, pay a licensed collector to cart them away, and pay for them to be processed into recycled product. That costs money, and the disposal levy is how it’s passed on. It’s part of the true fitted price of a set of tyres, alongside mounting, balancing and valves.

Why are you charged a disposal levy?

Australia generates a huge volume of end-of-life tyres each year — Tyre Stewardship Australia puts the figure at around 56 million equivalent passenger units annually. A used tyre is bulky, doesn’t compact, traps water (a mosquito and fire risk) and is banned from many landfills whole. Getting rid of one properly means paying a licensed operator to collect, transport and recycle it. The disposal levy simply reflects that real cost. Without it, the alternative is illegal dumping and stockpiling — which is exactly what the recycling system exists to prevent. So the fee isn’t a money-grab; it’s the mechanism that keeps your old tyres in the recycling stream rather than in a paddock or a stormwater drain.

Where the money goes

Stage	What happens
Collection	A licensed collector removes old tyres from the workshop
Transport	Tyres are freighted to a processor or recycler
Processing	Tyres are shredded into crumb rubber, granules or tyre-derived fuel
Reuse	Recycled rubber becomes road base, soft-fall playground surfacing, sports surfaces, brake pads and more

We cover the end result in how tyres are recycled in Australia and what they become.

Is the disposal levy the same as the Tyre Stewardship Australia levy?

No — and this trips a lot of people up. There are two different things:

• The Tyre Stewardship Australia (TSA) levy is a national scheme charge of $0.25 per equivalent passenger unit, paid upstream by tyre importers and manufacturers who join the voluntary, ACCC-authorised scheme. You never see this as a separate line — it’s built into the wholesale cost of the tyre. It funds recycling market development, research and education, and is overseen federally under the Australian Government’s product stewardship framework. Read more in the Tyre Product Stewardship Scheme explained.
• The disposal levy on your invoice is your fitter’s own charge for physically handling and recycling your old tyres. It’s set by the retailer and reflects local collection and processing costs.

In other words, the 25-cent TSA levy is a wholesale contribution to the national system; the $1–$5 disposal fee on your bill is the retail cost of getting your specific old tyres recycled. They’re related in purpose but charged at completely different points.

Is the disposal levy legitimate — or can you avoid it?

It’s legitimate. Responsible disposal genuinely costs the workshop money, and a small per-tyre fee is a fair way to recover it. What you should watch is transparency, not the fee itself: it should be disclosed up front and be a couple of dollars a tyre, not an inflated “environmental charge” of $15 each. If a disposal fee looks steep, ask what it covers. You can technically keep your old tyres and dispose of them yourself, but you’ll then pay a tip or transfer-station fee to drop them off — usually more hassle than it’s worth for the sake of a few dollars. The fee belongs on your radar of quote line items to understand, not to fight.

Frequently asked questions

How much is the tyre disposal levy in Australia?

As a 2026 guide, commonly around $1–$5 per tyre, though it varies by retailer and state. Always ask for the fitted, out-the-door price so it’s included in what you compare.

Is the tyre disposal fee a government tax?

No. It’s a retailer charge that recovers the real cost of collecting and recycling your old tyres. State EPA landfill rules make responsible disposal necessary, but the fee itself is not a tax — it’s a service cost.

Can I refuse to pay the disposal levy?

You can ask to keep your old tyres and dispose of them yourself, but you’ll then pay a tip or transfer-station fee, and some states restrict how many tyres a person can drop off. For most drivers, letting the fitter handle it is easier and cheaper.

What’s the difference between the disposal levy and the Tyre Stewardship Australia levy?

The TSA levy is $0.25 per equivalent passenger unit paid by importers and built into the tyre’s cost. The disposal levy is your fitter’s separate retail charge for recycling your old tyres. See the scheme explained.

Are eco or recycled tyres exempt from the levy?

No — every tyre reaches end of life and needs recycling regardless of what it’s made from. We look at the environmental claims in are eco tyres actually better.

Bottom line

The tyre disposal levy — usually around $1–$5 a tyre in 2026 — is a legitimate charge that pays for your old tyres to be collected and recycled instead of dumped. It’s separate from the 25-cent-per-unit Tyre Stewardship Australia levy that importers pay upstream. Don’t fight the fee; just make sure it’s disclosed, reasonable and included in the fitted price you compare between stores.

Figures are indicative 2026 guides and vary by retailer and state — confirm the current charge with your fitter.