Australia is advancing national packaging reform to create consistent rules that improve packaging recyclability, increase recycled content use, and support a circular economy for plastics and other materials.
The initiative, outlined in a media release by the Australian Packaging Covenant Organisation (APCO) on 13 January 2026, follows a 2023 agreement by federal and state environment ministers to implement reforms that strengthen packaging standards and reduce waste.
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Challenges in current packaging and recycling markets
Australia produces more than 1.3 million tonnes of plastic packaging annually, with over 1 million tonnes going to landfill or litter each year, highlighting ongoing struggles with waste management and recycling infrastructure.
Imported virgin plastic resin often remains cheaper than locally recycled alternatives, dampening demand for recycled content and constraining investment confidence.
APCO notes that the supply chain possesses recycling capability, but demand for recycled materials has lagged behind investment, slowing progress to circular outcomes.
To tackle these market mismatches, the reform package emphasises Extended Producer Responsibility (EPR), a policy approach that holds producers accountable for the end-of-life management of their packaging.
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By GlobalDataBy setting a clear baseline for contributions across businesses, EPR is designed to discourage uneven participation in sustainability efforts and support brands that have already invested in better packaging design and labelling.
Projected environmental and economic benefits
Independent analysis included in APCO’s reform overview suggests reform could deliver measurable environmental and economic benefits by 2030. These include avoiding approximately 700 000 tonnes of CO₂ emissions annually and reducing landfill waste by about 370 000 tonnes each year.
Economic modelling indicates the reforms could attract A$220 million in private investment, support around 19 000 jobs, and add close to A$2.5 billion in value to the Australian economy, while having only a minimal impact on product prices.
Ensuring that recycled plastics are consumed domestically can also reduce reliance on low-cost imports and help stabilise local recycling markets, a point echoed by the Australian Council of Recycling and APCO in related industry commentary.
Industry response and next steps for packaging regulation
APCO’s reform push aligns with broader moves within Australia to refresh national packaging regulations and meet long-standing National Packaging Targets that aim for all packaging to be recyclable, reusable, or compostable and for plastic packaging recycling rates to increase significantly.
These targets were set under the co-regulatory framework administered by APCO, where businesses over a certain turnover threshold are obliged to design more sustainable packaging and improve recovery outcomes.
Industry groups have broadly welcomed steps toward national consistency, emphasising the need for clear standards to avoid fragmented state-by-state requirements.
Businesses are being encouraged to prepare for upcoming regulatory changes by auditing their packaging portfolio for recyclability and recycled content, engaging with policy makers, and participating in consultation opportunities.
As reforms progress through 2026, companies operating in Australia’s packaging value chain will need to adapt to evolving compliance expectations while navigating the transition toward more sustainable packaging systems.
