The average ratepayer will pay an additional $90 for garbage collection this year.
And, commercial properties can expect an increase of about $100 on their rates bill.
After passing on a $24 saving last year, Baw Baw Shire has changed course and opted to collect $14.5 million for "full cost recovery" in this year's draft budget.
This will see an additional $2.52 million collected from waste charges compared to the 2024/25 forecast.
Cr Paul Pratt told Wednesday's meeting the 20 per cent increase to waste, on top of the increased state government's emergency services volunteers fund levy, "was a bitter pill for all of us here to swallow."
"Let it be noted that council has stood firm in here in not implementing the non-mandatory best practice guidelines," Cr Pratt said. "Instead going just with the full cost recovery method."
The residential waste charge will increase 19.4 per cent, rising from $464 to $554 per property.
Commercial properties will see a rise from $504 to $602 for a 120-litre bin or $599 to $715 for a 240-litre bin.
Garbage services in Tanjil Bren and Walhalla traditionally attract lower changes.
Tanjil Bren residents will pay $172 for collection, up from $144, and Walhalla residents $266, up from $223.
Cr Danny Goss explained the waste charge had "ramped up significantly" following a big increase to the Environment Protection Agency levy.
The draft papers stated Baw Baw was taking the route similar to a number of other Victorian councils in charging a levy to achieve full cost recovery, inclusive of increases from the levy in 2025/26.
The recommendation is in reverse to council resolving to absorb a $1 million increase in last year's budget.
Full cost recovery of waste services includes street, footpath and drain cleaning and provision of public bins in addition to kerbside garbage collection.