Tyre Stewardship Australia (TSA) has launched a $550,000 incentive program encouraging local councils to use Australian recycled tyre rubber in road construction.
The initiative offers eligible councils up to $25,000 towards their first crumb rubber asphalt project, with the aim of turning successful trials into regular road maintenance and resurfacing programs.
Announced on 14 October 2026, the Australian Crumb Rubber in Council Roads Incentive provides $250 for each verified tonne of Australian tyre-derived crumb rubber used, capped at 100 tonnes per council.
The funding comes from voluntary contributions made by participating tyre and automotive brands through Australia’s Tyre Product Stewardship Scheme.
While the immediate financial commitment is relatively modest, the initiative addresses an important challenge facing Australia’s tyre recycling industry: creating reliable, long-term demand for recovered tyre materials.
Moving Beyond Demonstration Projects
Using recycled tyre rubber in Australian roads is not a new concept.
TSA has supported numerous projects involving councils, road authorities, asphalt manufacturers and research organisations to demonstrate the technical and environmental potential of crumb rubber asphalt.
However, demonstrating that a product works is different from convincing councils to include it in their regular purchasing and maintenance programs.
Local governments manage a substantial proportion of Australia’s road network, making them potentially important customers for recycled rubber products.
For councils unfamiliar with crumb rubber asphalt, barriers can include engineering specifications, procurement requirements, contractor availability, cost and uncertainty about long-term performance.
TSA’s new incentive aims to reduce some of these barriers by contributing directly towards the quantity of recycled rubber incorporated into road projects.
Unlike a conventional research grant, the funding is linked to verified material use, creating a measurable connection between financial support and demand for recovered tyres.
What Have Previous Australian Road Trials Demonstrated?
Australian road trials have already provided encouraging evidence that crumb rubber asphalt can perform comparably with conventional asphalt.
Sydney Councils: Paving the Way
During 2023, 12 Sydney councils participated in the Southern Sydney Regional Organisation of Councils (SSROC) Paving the Way project.
The project incorporated approximately 28.5 tonnes of recycled rubber into 6,500 tonnes of asphalt, resurfacing around 40,000 square metres of roads.
Initial monitoring found that crumb rubber asphalt performed equally well or better than conventional asphalt in at least 80% of the applications assessed.
Some sections also recorded reductions in rutting depth of up to 50%.
These are promising early results, although longer-term monitoring is needed to establish whether the modified surfaces deliver improvements in road lifespan and whole-of-life maintenance costs.
Greater Dandenong: Longer-Term Performance
A Victorian project provides an opportunity to examine performance over a longer period.
In 2021, the City of Greater Dandenong resurfaced a section of Church Road in Keysborough using crumb rubber asphalt designed for light traffic conditions.
Independent monitoring between 2021 and 2025 found that the road remained in good condition, with no notable defects reported.
The modified asphalt also demonstrated favourable cracking performance compared with a conventional asphalt control road.
However, the two road sections experienced different traffic volumes, which limits how directly their performance can be compared.
The findings nevertheless provide useful evidence that crumb rubber asphalt can remain serviceable over several years, rather than simply performing well immediately after installation.
What Could the $550,000 Incentive Achieve?
The funding pool could support the equivalent of 22 councils receiving the maximum $25,000 contribution.
If fully allocated at $250 per tonne, it would support the use of up to 2,200 tonnes of Australian recycled tyre rubber.
| Program measure | Potential outcome |
|---|---|
| Total funding | $550,000 |
| Incentive per tonne | $250 |
| Maximum contribution per council | $25,000 |
| Maximum funded crumb rubber volume | 2,200 tonnes |
| Equivalent maximum council allocations | 22 |
These figures are calculated funding equivalents, not confirmed program targets. Actual outcomes will depend on eligible applications and verified material use.
The incentive is not designed to cover the full cost of road construction. Instead, it contributes towards introducing recycled rubber into existing or planned projects.
For Australia’s tyre recycling industry, 2,200 tonnes represents a relatively modest volume compared with the national flow of end-of-life tyres.
The greater opportunity is what happens after councils complete their first project.
If participating councils subsequently incorporate crumb rubber asphalt into their standard resurfacing specifications, they could generate ongoing demand without relying on further incentives.
That would represent a more significant commercial outcome than the initial volume of rubber supported by the program.
Why End Markets Matter to Australia’s Tyre Recycling Industry
Much of Australia’s tyre recycling debate has focused on collection, traceability, illegal dumping and whether participation in the national stewardship scheme should become mandatory.
These are important issues, but collecting and processing end-of-life tyres is only part of the recycling system.
Recovered materials also need commercially viable destinations.
Without reliable demand for recycled rubber, improvements in tyre collection do not necessarily translate into a stronger domestic circular economy.
Road construction offers one potential outlet because asphalt manufacturers can incorporate processed tyre rubber into suitable pavement products.
The new council incentive therefore supports more than individual road projects. It also creates opportunities for Australian recyclers, crumb rubber processors, asphalt suppliers and road contractors to develop commercial relationships.
For the tyre industry, this is an important distinction.
A functioning recycling system needs both responsible collection and customers willing to purchase the materials recovered from end-of-life tyres.
Environmental Benefits Still Need to Be Demonstrated
Recycled rubber asphalt has the potential to deliver environmental benefits, particularly where improved durability reduces the frequency of road maintenance and replacement.
However, incorporating recycled material into asphalt does not automatically guarantee a lower environmental impact over the life of a road.
The outcome depends on factors including the asphalt formulation, manufacturing process, transport distances, construction requirements and actual service life.
This is particularly relevant to Australian research examining the life-cycle performance of crumb rubber asphalt.
A road surface that requires more resources during production may still deliver an overall environmental benefit if it lasts sufficiently longer than a conventional alternative.
Conversely, if the expected durability improvements do not materialise, some of those anticipated benefits may not be achieved.
For councils, the decision ultimately needs to consider road performance, environmental outcomes and whole-of-life cost together.
That makes continued monitoring of crumb rubber road projects essential.
The Real Test Is Whether Councils Keep Buying
TSA’s incentive is a constructive approach to one of the tyre recycling industry’s fundamental challenges: developing markets for recovered materials.
Rather than funding collection alone, the program directs stewardship contributions towards a measurable end use for Australian recycled rubber.
However, the success of the initiative should not be judged solely by how many councils receive funding or how many tonnes of crumb rubber are incorporated into roads.
The more important questions are whether participating councils are satisfied with the results, whether the products meet their engineering and financial requirements, and whether they continue specifying recycled rubber asphalt once the incentive ends.
Transparent reporting would help establish whether the program delivers that longer-term outcome.
Useful measures would include the number of participating councils, the volume of Australian recycled rubber used, project performance and the number of councils that subsequently adopt crumb rubber asphalt without additional funding.
At $550,000, the program is unlikely to transform Australia’s end-of-life tyre market on its own.
But if it helps councils move from occasional demonstration projects to regular commercial purchasing, its impact could extend well beyond the initial investment.
How Councils Can Apply
Applications are open nationally and will be assessed on a first-come, first-served basis.
The incentive applies to eligible crumb rubber asphalt projects, with crumb rubber spray seal projects also eligible in the Northern Territory.
Recycled rubber must be sourced from TSA-accredited recyclers, connecting the incentive to the existing tyre stewardship accreditation system.
Councils considering a project should review TSA’s official program requirements before committing to procurement or construction.
Conclusion
Australia has already demonstrated that recycled tyre rubber can be incorporated successfully into road construction.
As TreadTorque previously reported in its article, OTR Crumb Rubber Asphalt: What the Life-Cycle Assessment Reveals, a Sunshine Coast road trial examined the potential environmental benefits of incorporating recycled off-the-road (OTR) tyre rubber into asphalt.
The assessment highlighted an important distinction: the environmental benefits depend on how the modified road surface performs over its working life. If the asphalt lasts longer and requires less frequent maintenance or replacement, it may offset additional environmental impacts associated with its production.
The challenge now is turning that technical capability into regular commercial demand.
TSA’s new incentive provides councils with a financial reason to trial the material, while giving Australia’s recycling and asphalt industries an opportunity to demonstrate its practical value.
The long-term measure of success will not be how many subsidised roads are built, but how many councils continue using recycled tyre rubber when the subsidies are no longer available.
That is where a relatively small stewardship investment could deliver a lasting benefit for Australia’s tyre recycling industry.
