The parliamentary inquiry into Australia's tyre industry released the findings in a 165-page report on Thursday that called for changes to the way tyres are designed, imported and recycled, including a reduction in the number of tyres buried.
Other recommendations included new recovery targets, an audit of the existing voluntary recycling scheme, and consideration of a mandatory national recycling program.
The final report, called When the Rubber Hits the Road, follows a 10-month inquiry and eight public hearings into tyre manufacturing, importation, recycling, reuse and disposal in Australia.
It found more than 67 million tyres reached the end of their lives in Australia each year, equivalent to 537,000 tonnes, according to figures from 2023/24.
Most tyres from passenger cars, buses and trucks were recovered (87 per cent), but the recovery rate for off-road tyres was only 13 per cent.
More than 100,000 tonnes of off-road tyres were buried on mining sites at the end of their lives, and Kal Tire Australia estimated more than 500,000 tonnes were stockpiled.
Some of these tyres weighed more than five tonnes, and miner Fortescue told the inquiry recovery pathways were technically feasible but not commercially viable at scale.
The inquiry recommended changes including a staged reduction of on-site burial over five years, new recovery targets, and support for tyre collection and recycling.
Other recommendations from the inquiry included funding to address gaps in tyre collection and storage in regional, rural and remote areas, and the greater use of crumb rubber, made from recycled tyres, in road infrastructure.
End-of-life tyres could present an economic opportunity in Australia, inquiry chair and Victorian MP Rob Mitchell said, rather than a problem.
"This inquiry found they should be seen as the beginning of a new opportunity, with valuable materials that can be recovered, recycled, and put back to work in the economy," he said.
"Australia has the chance to create jobs, support regional industries and reduce waste by making better use of the resources already at our disposal."
Sustainable Tyre Recycling Australia, a newly-formed organisation representing tyre recyclers, rejected some of the recommendations and said the inquiry's failure to push for a ban on tyre burial was also disappointing.
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