A seven-year-old from New South Wales is using the state’s new container deposit scheme to save up for a house.

Lilly came up with the scheme after her mother forgot to take out the recycling, and instead of taking it to the dump, they tried their local recycling centre.

Lilly's customers contact her via her Facebook page when they've got excess recycling they'd like to donate.

She collects their donations after school or on the weekends and takes them to her local collection point where she earns 10 cents per item.

"In the first two weeks, I made $80," Lilly said.