The Australian Council of Recycling has urged the Federal Government to urgently introduce national packaging reforms, warning that without regulatory action Australia’s plastic recycling sector faces the risk of contraction and closure, according to a new ACOR-backed report.
ACOR said Australia uses more than 1.3 million tonnes of plastic packaging each year, most of it imported, with more than one million tonnes ending up in landfill or as litter.
While domestic recyclers have the technical capacity to process recyclable plastics, the council said weak demand for locally recycled plastic packaging is undermining the commercial viability of recycling facilities.
Economic analysis prepared by Rennie Advisory for ACOR and the Australian Packaging Covenant Organisation found that reforms requiring packaging to meet strict design standards, include recycled content, and be recyclable or reusable could support a more resilient domestic recycling industry.
The analysis concluded that introducing a fee-based extended producer responsibility scheme would have a minimal impact on product prices, adding about 0.1 per cent to costs, while creating stronger incentives for sustainable packaging.
According to the report, reforms introduced during the current term of government could reduce plastic pollution by an estimated 370,000 tonnes a year, increase economic activity by $2.5 billion in gross value-add, attract $220 million in private investment and create close to 20,000 jobs over five years.
The modelling also found potential reductions of around 700,000 tonnes of carbon dioxide emissions annually.
The report noted that national packaging laws were agreed to by governments in 2023 in response to low recycling rates and the need to shift away from a “take, make, waste” model.
However, it found that only about eight per cent of plastic packaging sold in Australia currently contains recycled plastic, despite significant public investment in domestic recycling infrastructure.
Without regulatory reform, the analysis forecast that utilisation of Australia’s plastic recycling facilities could fall to around 32 per cent within five years, increasing the risk of facility closures, job losses and stalled investment.
It also projected that environmental costs from plastic waste could exceed $32 billion by 2050 if current trends continue.
