What Is the Tyre Disposal Levy and Why Are You Charged It?

Look closely at a tyre quote and you will usually spot a line like “tyre disposal”, “recycling fee” or “environmental levy” of a few dollars per tyre. It is easy to assume it is padding, but it reflects a real, regulated cost of getting rid of your worn rubber the right way. Here is what the charge is, where the money goes, and why it exists. Figures are a 2026 guide — confirm current pricing with your retailer.

What is the tyre disposal levy?

The disposal levy is the fitter’s charge for handling your end-of-life tyres — the ones coming off your car. When you buy replacements, the old tyres become a controlled waste that the workshop must store, then hand to a licensed collector who takes them for recycling or energy recovery. That collection service costs the workshop money per tyre, and the levy passes that cost on. Expect roughly $1–$5 per tyre as a guide in 2026, sometimes shown as a single “disposal” line across the set.

This charge is one of several small items that make the advertised “from $X” tyre price lower than the real total — see what’s actually included in a tyre fitting price and the full tyre fitting, balancing and valve costs explained.

Is the tyre disposal fee a legitimate charge or a rort?

It is legitimate. Whole tyres are banned or heavily restricted from landfill across most Australian states because they trap methane, can catch fire and provide breeding sites for mosquitoes. State environment regulators (the EPA in NSW, Victoria, South Australia and elsewhere) classify used tyres as a regulated waste stream, so a workshop cannot simply bin them. They must use a tracked, licensed pathway — and that service is what you are paying for.

What makes a disposal fee questionable is not that it exists, but if it is unusually high or duplicated. A few dollars a tyre is normal; a large, vague “environmental” charge is worth querying. Our guide to hidden fees to watch for on an Australian tyre quote covers how to sanity-check every line.

How does the tyre disposal levy connect to Tyre Stewardship Australia?

There are actually two separate charges in the tyre recycling story, and it helps to keep them apart:

Charge	Who pays it	Amount (guide)	Purpose
Tyre Stewardship Australia (TSA) levy	Tyre importers / manufacturers, at wholesale	$0.25 per equivalent passenger unit (EPU)	Funds the national product stewardship scheme, recycling research and market development
Retailer disposal fee	You, the customer, at the fitter	~$1–$5 per tyre	Covers the workshop’s cost to collect and hand off your old tyres for recycling

The TSA levy is a voluntary industry levy of 25 cents per equivalent passenger unit, paid upstream by importers under the ACCC-authorised Tyre Product Stewardship Scheme, which has run since 2014. It is baked into the wholesale price, so you do not see it on your invoice. The disposal fee you do see is your fitter’s own recovery of the cost of getting the tyres off your car and into that recycling chain. We explain the national scheme in full in the Tyre Product Stewardship Scheme explained.

Where do your old tyres actually go?

Australia generates the equivalent of around 56 million passenger tyres a year at end of life. Once collected, they are shredded and turned into crumb rubber, used in road surfacing, sports surfaces, brake pads, playground softfall and export-grade fuel. Very little that goes through a licensed collector is wasted. The full journey is covered in how tyres are recycled in Australia and what they become, and if you are disposing of tyres yourself, see where to dispose of old tyres in Australia, state by state.

Can you avoid the tyre disposal levy?

Sometimes, but it rarely makes sense. If you ask to keep your old tyres — for a trailer, a track set or garden use — the fitter should waive the disposal fee since they are not disposing of them. But you then own the disposal problem, and dropping tyres at a transfer station usually costs a similar few dollars each anyway. For most people, paying the small levy at the fitter is the cheapest and most convenient route. Because it is a fixed few dollars, it barely moves the needle when you compare tyres on cost per kilometre.

Frequently asked questions

How much is the tyre disposal fee in Australia?

Typically about $1–$5 per tyre as a 2026 guide, sometimes shown as one combined line for the set. Confirm the exact amount on your quote.

Is the tyre disposal levy compulsory?

The retailer’s fee is not set by law, but the requirement to dispose of tyres through a licensed pathway effectively is — whole tyres are banned from landfill in most states. You can avoid the fee only by keeping the old tyres yourself.

What is the difference between the TSA levy and the disposal fee?

The Tyre Stewardship Australia levy (25c per equivalent passenger unit) is paid by importers at wholesale to fund the national recycling scheme. The disposal fee on your invoice is your fitter’s own cost of collecting and recycling your old tyres.

Why can’t old tyres just go in the bin?

Whole tyres are restricted from landfill across most of Australia because they are a fire risk, trap gases and breed mosquitoes. They must be recycled or recovered through licensed operators.

Can I refuse the disposal fee and keep my old tyres?

Yes — ask the fitter to hand them back and the disposal charge should be removed. You then become responsible for disposing of them lawfully.

Prices are a 2026 guide only and vary by retailer and state. Confirm current fees with your tyre retailer and check your state EPA for local rules. Suggested schema: Article + FAQPage.

Authority sources: Tyre Stewardship Australia — the Scheme; DCCEEW — Tyre Product Stewardship.