Trade waste tips for 2025
18 June 2025
5 min read
I was thrilled to speak at the Australian Environment Business Network’s Trade Waste Workshop this morning to give a regulatory overview and legal perspective on trade waste.
It might not be the most glamourous topic, but I often think of trade waste as a “bell weather” issue in that if a business that is not managing wastewater appropriately it can be sign that they may be struggling with environmental risk management more broadly.
It is an area that is often poorly understood despite the fact that it impacts both small and large businesses alike. There are significant legal, financial and reputational consequences for entities that don’t manage waste streams.
This Environment Express article explores some high-level considerations for dealing with trade waste as a business managing liquid waste. The considerations that apply to water corporations, government agencies and others responsible for operation of the sewerage network are not covered in this article.
What is trade waste?
Trade waste broadly means:
liquid waste
generated in industrial or commercial premises
that is discharged to the sewer.
It can encapsulate waste liquids that derive from a range of sources: manufacturing and industrial processes; cleaning; wastewater from particular plant such as cooling towers; and contaminated storm or surface water.
Trade waste may contain contaminants including oils, chemicals, detergents, and heavy metals. If not treated, these contaminants can cause significant harm to the environment and damage sewer infrastructure.
Trade Waste Tips & Thoughts
Managing trade waste, particularly for businesses which operate from multiple sites across Australia is not straightforward. The regulatory scheme is dependent on the jurisdiction (the State and Territory in which the site is located) as well as the particular regulator (usually a water corporation or local council). Each and every time, you need to check to determine the relevant authority for the local area.
A trade waste approval (a consent to discharge to a sewer) is required prior to discharging all liquid wastes to the sewer unless exceptions apply. The name of the approval type varies by jurisdiction. In Victoria, it is a trade waste agreement. In other jurisdictions, it is called a trade waste permit; trade waste authorisation or approval to discharge. Whilst there is usually some commonality in terms of conditions of trade waste approvals, which typically include conditions with regard to pre-treatment (if any); discharge limits; acceptance criteria; monitoring; and reporting, the exact requirements vary between regulators. Charging arrangements also vary considerably, so you need to check the specifics each time.
Trade waste is still a “waste” under environmental laws. Legal definitions and regulations vary between jurisdictions, but trade waste has the potential to fall within definitions of liquid waste and industrial waste (for example). This has legal implications for waste management obligations.
Just because trade waste goes to the sewer, this doesn’t mean that environmental laws don’t apply. Quite the opposite. The general environmental duty in Victoria and other pollution control legislation in other jurisdictions (particularly those that impose proactive duties) applies to liquid waste management (and applies in addition to particular waste offences). Victorian sites need to be aware of the compliance obligations under the Environment Protection Act 2017 under the general environmental duty.
Environmental regulators can and do take enforcement action in relation to management of liquid wastes, particularly where there have been spills. Penalties can be material. Some recent case outcomes as reported by EPAs include a penalty of $650,000 and an enforceable undertaking of $150,000.
Trade waste mismanagement can have broader financial and reputational implications. Sometimes the costs of upgrading facilities and equipment to bring a site into compliance can be material. Availability and terms of capital investment or potential acquisition may be impacted by non-compliance. Poor management of trade waste can lead to an adverse perception of environmental management, as well as legal compliance and risk management more broadly.
Liquid waste management also has the potential to impact on supply chain sustainability and relationships with customers. These matters are increasingly being subject to contractual inquiries and reporting. If your business has supply contracts with government agencies, non-compliances with environmental laws often require disclosure at tendering. More specifically, as trade waste is managed by councils (such as occurs in parts of Queensland and New South Wales), contracts with local government are particularly vulnerable because as the customer is also the trade waste regulator.
Beyond obtaining a trade waste approval to operate, it is important to ensure that the compliance requirements (e.g. discharge limits) are well understood by the site personnel, monitored and recorded (and reported as required). Regular maintenance of plant and equipment, particularly pre-treatment equipment, is important to ensure that malfunctions do not occur resulting in spills, overflows or other environmental incidents.
Be aware that management of management of wastewater is broader than just for “operational” effluent. Many jurisdictions require storm and surface water (and sometimes groundwater) that has been contaminated to be treated and managed. This often requires wash down water from cleaning operations or other contaminated stormwater (such as during contamination remediation projects) to be collected on site and disposed of appropriately (e.g. to sewer pursuant to a trade waste agreement or by collection, transport and disposal to an appropriately licensed liquid waste disposal facility).
Waste is a critical 2025/6 due diligence issue. Whilst many Australian entities now have mature EMSs, organisations should consider re-visiting their particular arrangements for waste to ensure compliant arrangements and this should include trade waste. Site activities change over time and new sites may be included in your business operations. So it is important to make periodic checks of the arrangements at sites to ensure that they remain compliant.
Next steps
If you would like any assistance with waste-related legal matters, including assistance with due diligence requirements please contact us.
Guthrie Legal is pleased to provide bespoke legal briefings in relation to waste regulation and compliance. Gabrielle has a wealth of experience in this area and has addressed the Australian Environment Business Network Waste Conferences for a number of years.
The legal stuff
Environment Express posts aim to provide high-level and thought-provoking information about contemporary environmental law issues.
All the information in this article and on this website and any downloads are intended only to provide a summary and general overview on matters of interest. They are for general educational purposes only.
The information is not intended to be comprehensive, nor does it constitute legal advice, strategic advice, consulting advice or product advice. It does not establish a lawyer - client relationship.
Whilst attempts have been made to ensure that the content is current at date of publication, Gabrielle Guthrie and Guthrie Legal do not guarantee its currency. Laws and contemporary practices change over time, including as a result of case law.
You should always seek independent legal or other professional advice on specific cases and before acting or relying on any of the content.
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