The NSW Environment Protection Authority (EPA) has issued $16,000 in fines after two amputated legs were found dumped at a rubbish tip near Newcastle eight months ago.

A bulldozer driver at the Summerhill tip discovered the legs, which had been cut from below the knee, and other items of clinical waste on February 16.

Authorities determined they had been surgically removed at nearby John Hunter Hospital.

Following an investigation, the EPA identified a "serious communication breakdown" had occurred between Hunter New England Health and a waste disposal company to allow the legs to be dumped at the tip.