The ACCC has granted authorisation, with a condition, for the Tyre Product Stewardship Scheme to continue for a further 3 years.
The Tyre Stewardship Australia (TSA) implemented scheme aims to increase the number of tyres being recycled and the use of tyre derived products in environmentally appropriate ways in Australia and overseas.
Since the ACCC first authorised the scheme in 2013, TSA has collected a levy from participating tyre importers and retailers and has directed over $9 million of funding to projects. TSA also raises awareness of the value of recycled tyres and the use of sustainable tyre-derived materials.
The ACCC notes TSA’s concern that the voluntary nature of the scheme limits its effectiveness. A number of companies who import or manufacture tyres or vehicles, or who sell tyres, have chosen not to participate. As have most mining companies, where their remote location significantly increases the cost of transporting end of life tyres to recycling facilities.
In response to government and industry feedback, the ACCC has exercised its discretion to authorise the Scheme subject to a condition which requires TSA to report on specified metrics in its Annual Report each year. The ACCC considers there is a need for TSA to publish more comprehensive data with consistent methodologies to ensure sufficient transparency and clarity of outcomes and has imposed a condition to this effect.
The ACCC considers that more transparent reporting will increase TSA’s accountability, as stakeholders will be better able to assess TSA’s performance against its KPIs. The ACCC also considers that consistent reporting also provides a greater awareness of the Scheme’s performance over time.
Further details about the application are available on the ACCC’s public register at: Tyre Stewardship Australia Limited
Background
Tyre Stewardship Australia Limited (TSA) operates the Tyre Product Stewardship Scheme in accordance with its Guidelines, which set out the commitments that Scheme Participants are required to meet. The Scheme is funded by 16 levy paying tyre manufacturer-importers and car manufacturers.
The Scheme was first authorised in 2013 and was most recently re-authorised in 2018 and in 2024.
A product steward, such as TSA, is responsible for overseeing the entire lifecycle of a product, from importation and production through to disposal and recycling. The goal is to ensure that products are managed in an environmentally responsible and sustainable manner, minimising negative impacts on the environment and human health.
When assessing applications for authorisation relating to product stewardship schemes, the ACCC seeks to ensure they do not unduly restrict competition.
While end-of-life tyre product stewardship is listed as a priority for the Minister for the Environment and Water, the ACCC understands it is uncertain whether and when government will decide whether to co-regulate the Scheme. Therefore, the ACCC has considered this application in the context of it being a voluntary product stewardship scheme.
ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act (CCA).
Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct would be likely to outweigh any public detriment.