A new levy is estimated to cost NSW $100 million a year as 2,000 rubbish trucks a month carry Sydney's waste north to be dumped over the border in Queensland.

The transfers began in July when the NSW Government increased its dumping levy by $10 to $95 per tonne, making it cheaper for companies to drive rubbish up north.

The levy is intended to encourage recycling, and is used to raise money for the state's infrastructure.

But the director of Dial-a-Dump Industries, Ian Malouf, says the levy is too expensive and costing the state millions of dollars in lost revenue.

"It's a tax at the end of the day so the states missing out on tax which is going to cost us roads and infrastructure," he said.

"I think it's going to cost us in the order of [$100 million] in the first 12 months. If it's let go around, I think it will escalate to around $200 million.

"We're burning it up the highway. It is a carbon contradiction - we're burning it up in fuel."

The NSW Government says it is working the Environment Protection Authority and the Queensland Government to try and resolve the issue.

"We've been reviewing the waste levies and we'll have an announcement early in the new year which will make it competitive and certainly make going to Queensland not an attractive option," said NSW Environment Minister Robyn Parker.

Despite the reports, Queensland's Environment Minister Andrew Powell says he has not seen evidence that 2,000 trucks a month are travelling from Sydney to dump waste in the Sunshine State.

Mr Powell says it is not illegal, but he wants a closer inspection of Queensland's waste industry data to determine if there has been a spike in interstate transfers.

"If I see the data demonstrating what we're hearing then we may take action," he said.

"But might I add we are sitting down with waster generators and sitting down with the waste industry and we're developing a new waste strategy for this state.

"If this becomes the issue that people are saying it is we'll make sure we include that in our strategy."

The Australian Council of Recycling spokesman Grant Musgrave says the state governments need a uniform levy.

"The community supports recycling and it's time all governments supported recycling," he said.