Australia’s approach to packaging waste and recycling has been the subject of ongoing discussion, with industry, government and consumers continuing to look for more consistent and effective solutions.
Recent developments have raised further questions about the future of packaging reform in Australia, following the Federal Government’s decision not to introduce proposed mandatory packaging standards during its current term.
The proposed reforms were intended to establish national packaging requirements, including minimum recycled-content targets and measures to reduce problematic materials and chemicals in packaging. The reforms followed an agreement between Australian governments in 2023, intended to move away from voluntary approaches and toward more consistent national standards.
For food manufacturers, retailers and packaging suppliers, consistency is particularly important. A broader question is also in discussion on the development of Australia’s domestic recycling industry. Australian recycling facilities are reportedly operating below capacity, while recycled materials can face competition from lower-cost imported plastics.
This creates a difficult cycle, without sufficient demand for recycled materials, investment in recycling infrastructure can become challenging, while without reliable domestic recycling capacity, businesses may find it more difficult to source recycled content.
The Government has cited cost-of-living pressures as a key consideration in its decision not to proceed with the proposed national scheme at this time. However, questions remain around the actual cost impact of mandatory recycled-content requirements.
Industry modelling referenced by the ABC estimated that mandatory recycling standards could add approximately 0.3 cents per packaging item. This discussion extends beyond the immediate cost of packaging. It also includes the longer-term costs associated with waste management, recycling infrastructure, resource recovery and environmental impacts.
Businesses should continue to consider packaging design, recycled content and recyclability outcomes as part of their broader product development and sustainability strategies, rather than waiting for mandatory requirements to be introduced. Our packaging regulatory services can assist businesses with reviewing packaging requirements; obtaining regulatory advice early can help reduce compliance risks and avoid costly packaging changes later.
