The state infrastructure bureau recommends that fees should be charged according to the weight of garbage discarded by households to help reduce waste.
The Infrastructure Bureau has called for a review of the existing waste treatment pricing mechanism and has thrown out the "throw-over-pay-more-(Pay as you throw)" scheme.
Last week, they said in a drafting report aimed at changing the status quo, some parts of New Zealand and the United States have replaced fixed waste-disposal charges with on-demand charges.
It is suggested that charges can be made on the basis of garbage weight, rather than the current fixed cost per household.
"New Zealand has adopted a similar approach, collecting only garbage contained in prepaid bags."
However, the state infrastructure bureau also warned that the new pricing mechanism could trigger "irregularities", including illegal dumping to reduce spending.
The agency said pricing mechanisms were already controversial, with the biggest difference between rural and urban areas.
And the report`s survey of the public shows that only 23% of the population supports charging on a scale-by-volume basis.
Bill McArthur, president of the Victoria Municipal Council, said the new pricing mechanism sounded "beautiful" but was accompanied by some concerns.
"We need to reduce landfills," he said.
Congressman McArthur said the "throw-over-pay-more" programme was challenging in terms of the feasibility of its implementation.
In rural areas, garbage collection vehicles have to travel long distances to cover a wider area, increasing basic spending.
Senator McArthur added that in order to be able to weigh, new equipment would have to be installed for all refuse collection vehicles.
A spokesman for Lily D Ambrosio, the state`s environment director, said Andrews goverment encouraged city halls to manage waste in innovative ways, and that the state infrastructure bureau`s report was under review by goverment.
Trevor Thornton, an expert on hazardous substance management at Deacon University, says it is unfair that households that discard only a small amount of waste now have to pay the same amount of garbage as those who throw away a lot of it.
While installing precise scales on garbage collection vehicles is a challenge, he said, "if we are going to do this, the solution is not without."
"I can imagine that the installation costs will prove worth it over time," he said.
Dr Thornton believes paying by weight can encourage more recycling and composting at home.
Compost can reduce food waste, which accounts for the largest portion of household waste, he said.
Dr Thornton thinks the proposal is worth at least trying.
The state infrastructure bureau also recommends promoting organic composting at the household level.
