Australia reconsiders packaging EPR in response to transparency concerns

AUSTRALIA – The Australian Packaging Covenant Organisation (APCO) has confirmed it will not proceed with the introduction of its proposed Extended Producer Responsibility (EPR) fee model in the 2027 fiscal year.

After months of structured dialogue involving close to 220 industry members and key stakeholders, the decision signals a broad demand for more precise regulation, stronger governance, and more tailored approaches across sectors.

APCO manages the Australian Packaging Covenant under the National Environment Protection Measure 2011.

According to APCO, in a letter to members, states that while there was “strong support” for the intent of EPR, stakeholders called for more governance and greater transparency. “We heard you,” said APCO CEO Chris Foley.

“As a result of your feedback, we can confirm that we will not introduce an EPR fee model in the fiscal year 2027. While our commitment to delivering an EPR model that works has not wavered, we appreciate that this will take more time.”

APCO will retain its existing framework through fiscal year 2027, with ongoing adjustments tied to the consumer price index and broader cost recovery requirements to ensure financial alignment and operational consistency.

The EPR initiative aimed to create an equitable and transparent framework for shared investment in infrastructure needed to meet Australia’s National Packaging Targets, especially across collection, sorting, and reprocessing systems.

Stakeholders’ response

While the concept of producer responsibility garnered wide approval, stakeholders emphasise that EPR needs to be matched with transparency, capability, and equity across the entire system.

“Industry told us loud and clear that a strengthened EPR system must go beyond intent,” said Foley.

“Ambition must be matched by clarity, capability and commitment across the entire system, not just from those already doing the right thing.”

Members expressed reservations about the rollout timeline of the new model, flagged potential fee hikes as a key concern, and highlighted the uncertainty surrounding the allocation and oversight of new revenue streams.

They also warned against imposing additional reporting requirements without sufficient support or clear rationale.

These themes reflect a collective insistence that EPR must be realistic, trusted, and backed by evidence, not merely good intentions.

What next?

For the fiscal year 2027, APCO will maintain its turnover-based fee model, applying CPI adjustments and cost recovery measures as needed while shelving the proposed ‘base fee + EPR fee’ structure.

The organisation will now engage in a collaborative process with industry and align with evolving government policy to refine its approach, ensuring that all voices are heard and considered.

 A summary of consultation insights and a revised roadmap are anticipated in the coming months, with the current structure set to remain in place through July 2027.

Despite postponing the rollout, APCO maintains its commitment to developing a robust and enduring EPR framework for packaging in Australia.

As industry players urge the government for clearer direction on overarching regulations, the responsibility now lies with APCO to foster trust in a functional framework and to actively engage members throughout the journey.

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