Newcastle Council is dealing with a $3.7 million dollar bill after replacing roads in the city's east end ahead of the supercars event.
More than 27,000 tonnes of road-based materials were removed from the city during work on Watt Street and other areas last year.
The materials were to be recycled, but contaminants were discovered meaning the waste was instead treated and sent to the dump.
CEO Jeremy Bath has confirmed council has applied to the State Government to have the waste fees waived.
"This type of waste attracts a disposal fee of $136 per tonne, meaning Council has now received a bill for $3.67 million."
"Given the nature of the renewal works and the NSW Government's strong support for them prior to the Newcastle 500, Council is asking that the full amount be waived."
"This is waste that Council is not allowed to recycle. It is also waste that Council had to remove from below the road surface."