Australia’s recycling industry is at a critical juncture, with industry leaders warning that delayed reforms could jeopardise the country’s ability to recycle plastics effectively. The Australian Council of Recycling (ACOR) has expressed concerns that without urgent legislative action, Australia’s plastic recycling capacity may collapse, despite having the infrastructure in place to process recyclable materials.
The Scale of the Issue
Each year, Australia generates over 1.3 million tonnes of plastic packaging, much of it imported, with over a million tonnes ending up in landfills or as litter. Although significant strides have been made in recycling, the lack of strong demand for locally recycled plastics is placing pressure on domestic recycling operations. Without reform, some facilities may face closure, further increasing the nation’s reliance on imported plastics and exacerbating environmental issues.
Economic Impact of Proposed Reforms
A recent report by Rennie Advisory, commissioned by ACOR and the Australian Packaging Covenant Organisation (APCO), highlighted the benefits of reform. The report proposed a fee-based Extended Producer Responsibility (EPR) scheme, which would require brand owners and producers to take responsibility for the disposal of plastics packaging. This initiative, while adding a modest cost of 0.1% to product prices, could reduce plastics waste by 370,000 tonnes annually and generate over A$2.5 billion in value over five years. It would also create approximately 20,000 new jobs and cut down CO2 emissions by 700,000 tonnes per year.
Current Challenges and the Path Forward
Australia’s National Packaging Laws, agreed in 2023, aim to address the low recycling rates and move towards a circular economy. However, the current situation reveals that most plastic packaging sold in Australia is made from imported fossil fuels, with only 8% containing recycled plastics. Without regulatory change, the use of domestic recycling facilities could fall drastically, resulting in closures and job losses.
For Australia to meet its sustainability targets, it is crucial to build long-term demand for locally recycled plastics. Proper reforms would not only support businesses investing in improved packaging but also provide the foundation for a circular economy that benefits the environment and creates local jobs.


