Victoria's waste and recycling crisis will not improve unless there is a clear statewide plan, something which has not existed since 2014, a new report warns.
With Victorians discarding 12.9 million tonnes of waste in one year, Auditor-General Andrew Greaves said a significant amount going to landfill could be recycled or reprocessed, but state agencies are responding to the issue in an "ad hoc" and "reactive" manner.
"Without clear state-level plans for how to manage recyclables in this new environment, stockpiles will likely continue to grow and pose unnecessary risks, and waste-to-landfills will continue to rise," Mr Greaves wrote in his report tabled in parliament on Thursday.
He took aim at the Department of Environment, Land, Water and Planning for dragging its feet with updating the state's waste policy.
"Without such a policy since 2014, Victorian waste management agencies have been operating in an uncertain environment and are unable to effectively prioritise their limited time and resources," he said.
The department is developing a policy, but it's not due until next year.
Mr Greaves said DELWP and Sustainability Victoria failed to identify signals as early as 2013 that China was changing its approach to accepting Australian waste.
The Environment Protection Authority was criticised for failing to effectively monitor and address the growth of inappropriately-managed waste stockpiles, posing health and fire risks.
"As a number of toxic fires in waste facility sites demonstrate, the need for greater oversight of waste operators is evident," Mr Greaves said.
He noted the EPA has increased its oversight since a significant fire at suburban Coolaroo in July 2017.
While the problem has continued to grow, so too has a Sustainability Fund, collected by the state government to support waste management, which contained $511 million at June 30, 2018.
Mr Greaves made 22 recommendations which were accepted by all named agencies.
Opposition environment spokesman David Morris said it was also worrying data was not being properly collated on waste collection.
"Because when I put my recycling bin out every second Thursday night, I expect that all the materials that are in there will be recycled or reused as do, I think, every other Victorian," he told reporters.
The Greens also attacked the lack of government investment in the sector and said the Sustainability Fund should be used for its purpose.