Australia’s soft plastics recycling system is showing signs of revival, but industry and environmental groups warn that broader regulatory reform is urgently needed to secure a trusted circular packaging economy.
After several years of disruption following the collapse of the REDcycle collection program in 2022, soft plastics recycling is returning. Collected soft plastics from supermarket and council collection trials are shredded, sorted and sent to manufacturers for reuse in new products, a key step toward rebuilding infrastructure that was long missing from Australia’s waste system.
A renewed industry-led effort is underway through Soft Plastic Stewardship Australia (SPSA), backed by major retailers and brands. The Australian Competition and Consumer Commission (ACCC) has granted authorisation for a nationwide voluntary recycling scheme that aims to coordinate collection, processing and end-market development for soft plastic packaging.
Despite these developments, significant concerns persist about the viability and scale of current recycling pathways and the broader packaging ecosystem The Australian Council of Recycling (ACOR) and the Australian Packaging Covenant Organisation (APCO) have called for urgent federal action to introduce stronger regulatory measures on packaging design, recycled content and extended producer responsibility (EPR).
Industry modelling suggests that ensuring all packaging is recyclable, made with recycled material and supported by a fee-based EPR framework would boost local economic activity, create jobs, and significantly reduce plastic waste and emissions, all with minimal impact on product costs.
Only a small fraction of Australia’s 1.3 million tonnes of annual plastic packaging currently contains recycled content, and without mandated standards, cheap virgin imports continue to dominate the market, weakening demand for recycled material.
For operations in Australia, remaining updated with these developments is signalling a transition point for improvements and collection with clear and consistent regulatory frameworks for recyclable-ready design, recycled content uptake and genuine circular outcomes.
Our packaging regulatory services support businesses to navigate this transition, guiding packaging compliance, sustainability claims, recycled content obligations and upcoming reform to prepare for a tightly regulated circular economy.
