Waste from yellow recycling bins in Ipswich will go straight to landfill

Waste from yellow recycling bins in Ipswich is heading straight for landfill after a controversial decision by council.

Ipswich Mayor Andrew Antoniolli said Australia's recycling system had broken sooner than expected and council was backed into a corner.

The council today admitted it had been sending recyclable waste to landfill for the last month.

China's ban on certain foreign materials has led to a sharp rise in the cost of domestic recycling.

Council said the decision was inevitable after a rise in costs that would translate to a 1.5 to two percent rate rise for residents.

"We cannot afford to put our rates up two per cent for recycling. It's unaffordable," Mr Antoniolli said.

Council claims that more than half the contents of yellow household recycling bins are contaminated and unable to be recycled.

In contrast, only about seven percent of Brisbane recycling bins are contaminated.

"The industry has been rejecting our recycling because it can not get down to a sustainable contamination rate," the mayor told 9NEWS today.

The city plans to move towards converting waste to energy.

The Local Government Association of Queensland said other councils may be forced to follow suit with the increasing costs of recycling that are untenable for many local government areas.

Brisbane, Moreton Bay, Logan, Gold Coast and Sunshine Coast councils have so far ruled out following Ipswich's lead.