There’s dust, and then there’s paper dust, and there’s also paper fibers that are likely flying around from the shredding. I can see that making you itchy. It would make me itchy!
If thinking about being itchy, and what creatures might be causing it makes the itching worse, there is a psychological component.
Any contact-based reaction will resolve with removal of the offending antigen, so avoid exposure for a while and see what happens to the itching. Sure; maybe you picked up scabies somewhere. But more likely something not alive is irritating your skin.
You have to be really nutty to have Morgellons, but we’re all a little nutty when it comes to worrying that small somethings are going on with our skin. Except me.
You great wuss you. Bugger the local council by-laws…you’re just having a BBQ if questioned!
(Seriously, for all that weird shit that needs to be disposed of, find thee a tub out of an old top-loader washing machine, get a grate for the top, stick the stick bit at the bottom in the ground, bung yer’ flammable rubbish inside, and some chops on the grate/grill).