{"id":12631,"date":"2026-04-08T04:08:10","date_gmt":"2026-04-08T08:08:10","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=12631"},"modified":"2026-04-08T04:08:10","modified_gmt":"2026-04-08T08:08:10","slug":"australia-packaging-reform-to-boost-plastic-recycling-and-recycled-content","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=12631","title":{"rendered":"Australia packaging reform to boost plastic recycling and recycled content"},"content":{"rendered":"


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The changes aim to boost investment, improve recycling, and strengthen the circular economy for plastic packaging. \/ Credit: Beanykin via Shutterstock<\/figcaption><\/figure>\n<\/p><\/div>\n

Australia is advancing national packaging reform to increase plastic recycling and recycled content, as policymakers and industry seek to address a widening gap between recycling capacity and market demand.<\/p>\n

The reform package, agreed by state and federal environment ministers in 2023, aims to introduce consistent national rules on packaging design, recyclability and recycled content.<\/p>\n

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The measures are intended to support a more stable circular economy for plastic packaging and create clearer operating conditions for businesses.<\/p>\n

Demand gap slows recycling progress<\/h2>\n

Australia uses more than 1.3 million tonnes of plastic packaging each year, with over 1 million tonnes ending up in landfill or as litter. At the same time, demand for recycled plastic remains insufficient to match existing recycling capacity.<\/p>\n

According to the Australian Packaging Covenant Organisation (APCO), the issue is not a lack of processing capability but weak end-market demand. Lower-cost imported virgin resin continues to compete strongly, while locally produced recycled plastic can cost significantly more.<\/p>\n

This imbalance limits the commercial viability of recycling operations and makes it harder for companies to scale the use of recycled content in packaging.<\/p>\n

National rules to create consistency<\/h2>\n

The proposed national packaging reform focuses on creating a consistent regulatory framework across all jurisdictions. The aim is to align packaging requirements and reduce fragmentation for businesses operating nationally.<\/p>\n

Chris Foley said: \u201cAustralia has built more recycling capability, but demand for locally recycled plastic has not kept pace.\u201d<\/p>\n

He added that reform, including Extended Producer Responsibility (EPR), is needed to \u201cclose the market gap\u201d and \u201cset consistent national rules that lift performance across the whole market.\u201d<\/p>\n

EPR is expected to establish a clearer baseline for industry participation. By setting consistent obligations, it aims to prevent uneven contributions and provide greater certainty for investment across the packaging value chain.<\/p>\n

Economic and environmental impact<\/h2>\n

Analysis indicates that national packaging reform could deliver measurable benefits by 2030. These include reducing landfill waste by around 370,000 tonnes each year and cutting approximately 700,000 tonnes of CO\u2082 equivalent emissions.<\/p>\n

The reforms could also attract around $220 million in private investment, support the creation of about 19,000 jobs, and add an estimated $2.5 billion in economic value.<\/p>\n

The projected impact on product prices is limited, with modelling suggesting an increase of around 0.1% of product cost.<\/p>\n

APCO states that the objective is to convert existing industry progress into consistent outcomes. This includes setting national standards, building demand for recycled plastic, and supporting businesses to increase recycled content through transitional measures.<\/p>\n

The organisation notes that stronger policy signals are needed to move from voluntary action to system-wide performance, with implementation seen as the next critical phase for Australia\u2019s packaging reform agenda.<\/p>\n

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