Australia’s packaging reform targets US$2.5B recycling enhancement to address 1MT of landfill gap

AUSTRALIA – Australia has advanced national packaging reforms to boost plastic recycling and recycled content, aiming to address a widening gap where the country uses more than 1.3 million tonnes of plastic packaging annually yet over 1 million tonnes still ends up in landfill or as litter.

The reform package, agreed by state and federal environment ministers in 2023, introduces consistent national rules on packaging design, recyclability, and recycled content.

Chris Foley explained that Australia has built more recycling capability, but demand for locally recycled plastic has not kept pace.

He noted that reform, including Extended Producer Responsibility, is needed to close the market gap and set consistent national rules that lift performance across the whole market.

The Problem: Weak Demand for Recycled Plastic

According to the Australian Packaging Covenant Organisation, 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.

This imbalance limits the commercial viability of recycling operations and makes it harder for companies to scale recycled content in packaging.

The Solution: National Rules for a Fragmented Market

The proposed reform focuses on creating a consistent regulatory framework across all jurisdictions, aligning packaging requirements and reducing fragmentation for businesses operating nationally.

Extended Producer Responsibility will establish a clearer baseline for industry participation, preventing uneven contributions and providing greater certainty for investment across the packaging value chain.

The Payoff: Jobs, Investment, and Emissions Cuts

Analysis indicates that national packaging reform could deliver measurable benefits by 2030.

These include reducing landfill waste by approximately 370,000 tonnes each year and cutting about 700,000 tonnes of CO₂ equivalent emissions.

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

The projected impact on product prices is minimal, with modelling suggesting an increase of around 0.1 percent.

The Bottom Line

The Australian Packaging Covenant Organisation states that the objective is to convert existing industry progress into consistent outcomes, including setting national standards, building demand for recycled plastic, and supporting businesses to increase recycled content through transitional measures.

Stronger policy signals are needed to move from voluntary action to system-wide performance.

For the packaging industry, the message is clear: the era of voluntary action is ending, and national standards will soon define the rules of the game.

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