Tyre Stewardship Australia: How the TSA Scheme Affects Equipment Buyers

By:     Conor Murphy

What Tyre Stewardship Australia Is and Why It Matters

Tyre Stewardship Australia (TSA) is the approved product stewardship arrangement for end-of-life tyres in Australia, operating under the Product Stewardship (Tyres) Regulations 2020 that sit within the federal Product Stewardship Act 2011 framework. TSA is the primary funding mechanism for tyre collection and recycling infrastructure in Australia, collecting levies from tyre manufacturers and importers and distributing this funding to support recycling activity across the country.

For businesses buying or operating tyre processing equipment in Australia, the TSA scheme is not an abstract regulatory matter: it directly affects the economics of tyre recycling investment through the funding it provides to processors, the collection volumes it influences through retailer obligations, and the market development activities it supports for recycled tyre products. Understanding how TSA works and how to engage with it is a practical commercial consideration for any business in the Australian tyre recycling chain.

The scheme has evolved significantly since its predecessor, the Tyre Product Stewardship Scheme, which operated as a voluntary arrangement before the current co-regulatory framework was established. The co-regulatory framework introduced mandatory obligations for tyre brand owners and importers above a de minimis threshold, creating a more structured and better-funded scheme than the voluntary predecessor.

Gradeall International supplies tyre processing equipment to TSA-accredited processors and to tyre generators across Australia. The MKII tyre baler, sidewall cutters, OTR processing equipment, and the full tyre recycling equipment range from Gradeall’s Dungannon, Northern Ireland facility supports Australian tyre recycling operations engaged with the TSA scheme. With nearly 40 years of manufacturing experience and equipment in over 100 countries, Gradeall understands the implications of the TSA scheme for equipment investment decisions.

How the TSA Scheme Works: The Funding Flow

The TSA scheme’s funding mechanism begins with tyre brand owners and importers. Under the Product Stewardship (Tyres) Regulations 2020, any business that manufactures or imports tyres into Australia above the de minimis threshold (currently 200 passenger car tyre equivalents per year) must hold accreditation with an approved product stewardship arrangement. TSA is the approved arrangement; accreditation-holders become TSA members.

TSA members pay a levy for each tyre unit they place on the Australian market. The levy is expressed in passenger car tyre equivalents (PCTEs), with conversion factors for different tyre types (truck tyres, motorcycle tyres, OTR tyres) that reflect their relative size and processing cost. The levy per PCTE has been adjusted over time as TSA has assessed the funding needed to support its target collection and recycling activities.

The funds collected from member levies are distributed by TSA through several mechanisms:

Tyre Recycler Payments. TSA pays accredited tyre recyclers per PCTE of material processed through eligible recycling activities. This direct payment to processors supports the economics of tyre recycling by supplementing the gate fee and output commodity revenue. Without TSA funding, the gate fee required to make tyre recycling economically viable for processors would be higher, increasing disposal costs for tyre generators.

Collection Network Support. TSA funds collection infrastructure, including support for collection points and logistics assistance in areas where commercial collection economics are marginal. This is particularly relevant for regional and remote Australia, where transport costs make commercial tyre collection without subsidy uneconomic.

Market Development. TSA funds market development activities for recycled tyre products, including crumb rubber, processed tyre material, and applications like rubber-modified asphalt. Market development is critical because the recycling rate is ultimately constrained by the markets available for recycled outputs, not just by collection infrastructure.

TSA Accreditation: Who Needs It and What It Requires

TSA operates a two-tier accreditation system: member accreditation for tyre brand owners and importers with obligations under the regulations, and service provider accreditation for collectors and recyclers who wish to receive TSA payments for their activities.

Member accreditation. Tyre brand owners and importers above the 200 PCTE threshold must hold TSA accreditation or face regulatory non-compliance. Members provide annual data on tyres placed on the market, pay the applicable levy, and demonstrate compliance with scheme requirements.

Service provider accreditation. Tyre collectors and recyclers that process tyres in ways eligible for TSA payment must be accredited as service providers. Accreditation requires: demonstration of compliance with applicable state environmental regulations (current environmental authority or licence in each jurisdiction where operations occur); capability to process tyres through eligible recycling activities; data management systems to report processed volumes to TSA; and ongoing compliance with TSA’s service provider code of practice.

For a tyre recycling business with Gradeall equipment, TSA service provider accreditation is the pathway to accessing levy payments that supplement processing economics. The accreditation process requires demonstrating regulatory compliance and processing capability, which means the equipment investment itself is part of the accreditation qualification: a business cannot claim TSA payments for processing it cannot demonstrate it is actually performing.

How TSA Payments Affect the Equipment Investment Case

TSA recycler payments directly improve the economics of tyre processing equipment investment by adding a revenue stream per PCTE processed, supplementing gate fee income and commodity sales revenue. For a tyre baling operation producing PAS 108-equivalent civil engineering bales, the TSA payment per tyre baled is added to the bale sale revenue; for a crumb rubber processor, the TSA payment is added to the crumb rubber commodity revenue.

The TSA payment rate has varied over time and is set by TSA based on the total levy collected and the total eligible processing volumes claiming payment. As recycling volumes grow and more processors are accredited, the per-PCTE payment rate may be diluted. This creates an incentive for early accreditation and the establishment of processing capacity while payment rates are relatively more favourable.

For businesses assessing whether to invest in tyre processing equipment in Australia, the TSA payment should be included in the financial modelling as a separate revenue line, with the acknowledgement that its exact rate is subject to TSA’s ongoing scheme management decisions. It is a real and significant revenue contributor for accredited processors, but not a contractually guaranteed fixed rate.

TSA’s Market Development Programmes and Their Equipment Implications

TSA’s market development work influences the commercial environment for recycled tyre products, shaping the long-term revenue outlook for processing equipment.

Rubber-modified asphalt. TSA has actively promoted the use of crumb rubber in road construction (rubber-modified asphalt, or RMA) in Australia. Working with state road agencies and the national Austroads body, TSA has supported the specification of RMA in government road maintenance procurement. Growth in RMA use creates consistent demand for crumb rubber, improving the revenue stability for shredding-based processing operations.

Civil engineering applications. TSA has supported research and demonstration projects on the use of tyre bales in civil engineering, including geotechnical applications comparable to those of PAS 108 in the UK. Market development in this area improves the commercial prospects for tyre baling operations in Australia, creating buyers for bale output beyond the crumb rubber market.

Market transparency. TSA publishes data on recycling rates and material flows, which provides market intelligence for processors planning capacity investments. Understanding the current processing capacity versus the available tyre supply in each state helps operators assess where equipment investment is most needed and most commercially viable.

What TSA Means for Tyre Generators

For businesses that generate used tyres (tyre retailers, fleet operators, mining companies, agricultural businesses), the TSA scheme affects tyre disposal economics in several ways:

Subsidised disposal. TSA payments to processors support lower gate fees for tyre generators. Without TSA funding, the full processing cost would need to be recovered solely from the gate fee; with TSA funding, processors can charge lower gate fees while maintaining viability. This effectively means tyre generators benefit from the levy paid by tyre manufacturers and importers even if they don’t directly interact with TSA.

Approved collector requirements. For businesses wanting to demonstrate responsible tyre management, using TSA-accredited collectors and processors provides the documentation trail that confirms tyres have been directed to legitimate, scheme-compliant recycling routes. This matters to companies with sustainability reporting requirements, to government procurement contractors with sustainability obligations, and to any business seeking protection against duty-of-care liability.

High-volume generators. Mining companies, large fleet operators, and agricultural businesses generating significant OTR and truck tyre volumes should assess whether the scale of their generation justifies on-site processing investment. At sufficient volumes, on-site processing with Gradeall equipment can position the generator to access TSA payments directly as a self-processing entity rather than simply paying gate fees to a third-party processor.

“The TSA scheme has materially improved the economics of tyre recycling in Australia,” says Conor Murphy, Director of Gradeall International. “For the businesses that invest in processing equipment and get TSA service provider accreditation, the scheme adds a real revenue layer on top of the gate fees and commodity sales. We help Australian customers understand how to build TSA payments into their investment case and how to position their equipment and processes to qualify for accreditation.”

Contact Gradeall International for tyre processing equipment for Australian TSA-accredited and TSA-seeking operations.

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