About $2m will fund a regional organics strategy, led by Sustainability Victoria in partnership with Regional Waste Management Groups and regional and rural local councils, to provide support for odour-reducing composting facilities and better systems for kerbside collection of organic wastes, such as a third bin.

The funding will also be provided for field trials for the end-products of organic waste recovery, which will aid in the development of markets for these valuable products.

The Victorian state Environment and Climate Change Minister Ryan Smith said by reinvesting the landfill levy, the Coalition is supporting industrious local governments to build infrastructure to better recover organic wastes and turn them into new products like compost, fertilisers and fuels.

"More than 70 per cent of Victoria’s organic food and green waste ends up in landfill, so we need to be wiser about our waste and capitalise on opportunities to recover and reuse resources.

"By developing useful products from waste, we not only minimise odours in our local communities associated with rotting organics in landfills, but we also maximise opportunities for new industries and jobs growth," Smith said.

A further $3m will fund priority waste projects in regional Victoria over the next two years as determined by Regional Waste Management Groups.