Australia’s push for soft plastics recycling gains momentum with ACCC proposal

AUSTRALIA – The Australian Competition and Consumer Commission (ACCC) has issued a draft determination proposing to authorize Soft Plastics Stewardship Australia (SPSA).

The authorization would allow SPSA to establish a voluntary industry-led scheme to improve the collection and recycling of soft plastics, such as shopping bags and food wrappers.

This initiative aims to tackle pressing environmental issues by diverting more waste from landfills and fostering a circular economy for packaging materials.

Initial participants include major players like Woolworths Group, Coles Group, ALDI, Nestlé, Mars, and McCormick Foods, who will collaborate on expanding in-store and kerbside collection programs.

According to ACCC deputy chair Mick Keogh, “It is clear that many Australians are concerned about the environmental impacts of soft plastic packaging and want to recycle it.”

“We believe the proposed scheme will result in an environmental benefit as it aims to take over and expand the current in-store collection and kerbside pilots for recycling soft plastic packaging, meaning some soft plastics are likely to be diverted from landfill.” Keogh added,

The ACCC’s assessment highlights that the environmental advantages, including reduced landfill use and improved recycling infrastructure, outweigh any minor competition concerns.

If approved, the authorization would span eight years, incorporating safeguards like prohibiting exclusive contracts with recycling processors and mandating annual transparency reports on metrics such as collection volumes and levy expenditures.

Funding comes primarily from a participant levy, initially set at about US$104 per tonne of business-to-consumer soft plastic packaging placed on the market, with a minimum annual fee of US$1,043 for those introducing under 10 tonnes.

A US$10.4 million offset over eight years will reimburse Coles and Woolworths for costs tied to the previous REDcycle stockpile remediation, provided they remain involved. Levies may evolve to encourage recyclable designs and higher recycled content.

In a statement on industry data, over 540,000 tonnes of soft plastic packaging entered the market in 2022-2023, yet only 6% was recovered, with 70% being consumer-facing.

SPSA projects base-case recycling rates of 4-5% by the scheme’s end, potentially reaching 17-20% under optimistic scenarios, equating to 19,000-23,000 tonnes annually by FY33.

In-store drop-off points could double to 1,000 by FY29, while kerbside access expands from 50,000 to over one million households.

Education and marketing investments are slated to grow from US$0.78 million in FY26 to US$8.8 million in FY33.

Recent updates include the termination of the National Plastics Recycling Scheme pilot in June 2025, with interim ACCC approval enabling a seamless transfer of operations to SPSA, including data sharing and service contracts.

Public submissions on the draft are invited until August 25, 2025, ahead of a final decision.
Separately, the Australian Government continues reforms to curb packaging waste, complementing but distinct from this industry effort.

This scheme represents a collaborative stride toward greener practices, promising tangible reductions in plastic pollution.

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