Victoria is set to increase its plastic recycling and manufacturing capacity, following a $4 million investment from the Victorian Government, the Australian Government, and industry partners.
The funding will support four projects aimed at diverting hard-to-recycle plastics, including soft plastics, from landfills and transforming them into new products.
According to a media release from the Victorian Government, the initiatives are expected to boost the state’s resource recovery sector by 16,700 tonnes of recycled plastics annually, while supporting jobs in Victoria’s circular economy.
Projects receiving funding include Pact Recycling in Cheltenham, APR in Dandenong, Australian Soft Plastics Recycling in Pakenham, and RE4ORM in Barnawartha. Each project focuses on upgrading facilities and processes to improve the sorting, recovery, and reuse of low-density plastics for manufacturing new recycled products.
The Victorian Government confirmed that its $1.75 million contribution is matched by the Australian Government through the Recycling Modernisation Fund (RMF), which is backing 27 projects across the state.
Collectively, these projects are expected to add 328,000 tonnes of recycling capacity annually and attract $226.5 million in investment in Victoria’s recycling infrastructure.
Federal Minister for the Environment and Water Murray Watt said, “Australia’s transition to a circular economy is well underway, and this new infrastructure in Victoria marks an important step in transforming how we manage plastic waste. By building recycling capability here, we’re making real progress in recovering materials that would otherwise go to landfill.”
Victorian Minister for Environment Steve Dimopoulos added, “We’re investing in a cleaner future for all Victorians by supporting new infrastructure to recycle and recover more plastic waste. These projects will strengthen Victoria’s capacity to manage plastic waste – from pallet wrap to agricultural feed bags and soft plastics – ensuring more materials are recovered, reused, and kept in productive circulation.”
The Member for Isaacs, Mark Dreyfus KC MP, described the investment as “a great step forward that will help Victoria recycle more of the hard-to-recycle plastics into new products that would otherwise end up in landfill. It supports local jobs, and it helps make recycling work better for the community and for the environment.”
Ryan Batchelor, Member for Southern Metropolitan, said, “By strengthening our recycling and recovery industries we are creating new jobs as well as keeping our local environment and communities clean. By backing innovative projects like this, we’re turning waste into opportunity – creating jobs and cutting landfill.”
The Victorian Government confirmed that Round 6 of the RMF is now open, offering a further $4 million in joint funding to businesses, social enterprises, not-for-profit organisations, and local governments to expand recycling capacity and support the circular economy.
Applications close on 1 July 2026 or once funding is fully allocated.
