Why did the Victorian Supreme Court rule against Cleanaway Waste Management (ASX:CWY)?

The Court ruled that Cleanaway must pay historical landfill levies for materials purchased from a Boral quarry and used at the Melbourne Regional Landfill in FY18.

How much does Cleanaway (ASX:CWY) owe following this court decision?

The immediate ruling covers an underpayment of $6.9 million for the 2018 financial year. However, this figure does not include legal costs or interest, which will be added to the final amount payable by the company.

What is the total potential financial exposure for Cleanaway regarding landfill levies?

Beyond the $6.9 million FY18 judgement, EPA audits for FY19 and FY22 have identified further alleged underpayments of $4.7 million and $7.2 million. This brings the total potential liability to approximately $18.8 million, excluding interest and legal fees, if the same legal logic is applied to those years.

How does this ruling impact the investment thesis for Cleanaway (ASX:CWY)?

This news introduces regulatory and litigation risk, as it suggests the EPA may successfully challenge Cleanaway’s historical accounting for landfill levies.

What are the key risks for Cleanaway shareholders after this news?

The primary risk is a "contagion" effect where the FY18 ruling sets a precedent for the $11.9 million in alleged underpayments for FY19 and FY22. Additionally, there is uncertainty regarding whether other landfill sites or operating years could be subject to similar EPA audits and levy disputes.

Can Cleanaway (ASX:CWY) appeal the Victorian Supreme Court decision?

Yes, the company has been granted a 42-day window to review the detailed findings and decide whether to lodge an appeal. Investors should watch for an ASX announcement within this period, as an appeal would prolong the legal uncertainty but potentially mitigate the financial hit.

Cleanaway faces millions in fines following court ruling

Written by Liezl GambePublished May. 7 2026Last Updated May. 7 2026

The Victorian Supreme Court has ruled in favour of the Environmental Protection Authority regarding historical landfill levy underpayments by Cleanaway Waste Management (ASX:CWY).

The dispute centres on operations at the Melbourne Regional Landfill during the 2018 financial year.

The EPA initiated the proceedings to recover funds related to materials Cleanaway purchased from the neighbouring Boral quarry for use in its landfill operations.

While Cleanaway argued that these specific products did not constitute "waste" and should therefore be exempt from landfill levies, the Court ultimately rejected this defence.

The financial implications of the ruling are substantial, with the FY18 underpayment alone valued at $6.9 million. However, the total potential liability could escalate.

The company disclosed that EPA audits for FY19 and FY22 have identified further alleged underpayments of $4.7 million and $7.2 million, respectively, involving similar products.

Although these additional amounts—totalling $11.9 million—were not part of today’s specific Supreme Court judgement, they represent a looming fiscal pressure for the waste management giant.

Cleanaway is currently reviewing the court's detailed findings and has been granted a 42-day window to determine whether it will lodge an appeal.

At the time of reporting, Cleanaway Waste Management’s share price was $2.22.