Australia’s Cleanaway Waste Management (CWY.AX) has lodged a formal appeal against a Victorian Supreme Court decision over historical landfill levy underpayments at its Melbourne Regional Landfill.
The dispute centres on the fiscal 2018 underpayment of landfill levies at Melbourne Regional Landfill, with the amount for that year standing at A$6.9 million.
The Environmental Protection Authority has also conducted audits covering fiscal 2019 and fiscal 2022, identifying further alleged underpayments related to similar products at those sites.
The EPA’s claimed underpayments for fiscal 2019 and fiscal 2022 amount to A$4.7 million and A$7.2 million respectively, with all figures cited before costs and interest.
Cleanaway confirmed that the fiscal 2019 and fiscal 2022 amounts were not part of the Victorian Supreme Court proceedings that prompted the company’s appeal.
Despite pursuing a legal challenge, Cleanaway has moved to set aside a A$27.5 million provision covering the relevant levies across all three fiscal years, including assessed costs and accrued interest.
The company said the A$27.5 million provision will be treated as an underlying adjustment, signalling that management views the charge as separate from ordinary operating performance.
The cash flow impact for fiscal 2027 is expected to reach approximately A$12.3 million, representing payment of the disputed fiscal 2018 levy amount along with associated costs and interest.
That figure suggests Cleanaway anticipates the appeal process will extend well into the coming financial year before any final resolution is reached.
The landfill levy dispute adds a layer of financial and regulatory complexity to Cleanaway’s operations in Victoria, one of Australia’s most active markets for waste management services.
Cleanaway shares closed Friday’s regular trading session in Australia at A$2.3500, up 0.43 percent on the day.
