The Circular Economy (Waste Reduction and Recycling) Bill, to be introduced on Wednesday, will establish Recycling Victoria, which will oversee and regulate the state's recycling sector from July 2022.

The body, which will be a part of the Department of Environment, Land, Water and Planning, will oversee the transition of all local councils to the four-bin system by 2030, as well as a container deposit scheme from 2023.

Residents in 13 councils are currently using four bins: red for rubbish, purple for glass, yellow for paper and plastics and green for organics.

Environment Minister Lily D'Amboriso said the new laws would bring clarity and uniformity to the state's recycling sector.

"For too long, we've had a sector that has been desegregated, that has been very disjointed, with a whole range of different rules existing across a whole range of different municipalities, making it really hard for Victorians who want to do the right thing in terms of recycling," she said.

Ms D'Amboriso said the new measures would divert up to 650,000 tonnes of organic waste away from landfill, boost Victoria's economy by up to $6.7 billion by 2030 and create nearly 4000 jobs.

Australian Associated Press