The Turnbull government is putting up to $38 million towards a compost facility in Victoria, expected to recycle 120,000 tonnes of food and waste each year.

Eight Melbourne councils have signed up to use the $65 million facility, which is set to to be operational from mid-2019 and produce 50,000 tonnes of compost annually, Environment and Energy Minister Josh Frydenberg says.

‘It means food and organic waste produced by south east Melbourne residents will not end up in landfill and will instead produce high-grade compost for our gardens and parks,’ he said in a statement.