Australia’s packaging industry is facing renewed calls for nationally consistent rules, as industry body Australian Packaging Covenant Organisation (APCO) urges governments to align policy settings to improve recycling outcomes and reduce packaging waste.
In a recent statement, APCO said fragmented state-by-state approaches are slowing progress and creating uncertainty for businesses operating across the country.
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The proposed reforms are intended to support higher recycling rates, increase the use of recycled materials in packaging, and strengthen Australia’s transition towards a more circular packaging system.
Why Australia is reviewing its packaging rules
Australia generates more than one million tonnes of plastic packaging waste each year, much of which still ends up in landfill or the environment. While many companies have redesigned packaging to improve recyclability, APCO says the absence of consistent national rules makes it harder to scale these efforts.
Different regulations and reporting requirements across states and territories can increase costs for businesses and weaken demand for locally recycled materials.
APCO argues that a unified national framework would create clearer expectations for companies and help build confidence in domestic recycling infrastructure.
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By GlobalDataCentral to the proposal is the use of extended producer responsibility, where companies that place packaging on the market are responsible for its environmental impact after use.
Expected benefits for recycling and the economy
APCO estimates that consistent national packaging reform could deliver significant environmental and economic benefits by the end of the decade. These include large reductions in landfill waste, lower greenhouse gas emissions, and increased investment in Australian recycling and manufacturing.
The organisation also points to job creation and economic growth as potential outcomes, driven by stronger demand for recycled plastics and paper.
According to APCO, any impact on consumer prices would be minimal, with modelling suggesting only a very small increase in the cost of goods.
Supporters of reform say clearer rules would also help address the current imbalance where imported virgin plastics are often cheaper than recycled materials produced in Australia.
What the changes could mean for businesses
For packaging producers, brand owners and retailers, nationally consistent rules could simplify compliance and long-term planning. APCO says companies that have already invested in recyclable packaging and recycled content would benefit from a more level playing field.
The proposed reforms align with Australia’s existing national packaging targets, which aim for all packaging to be reusable, recyclable or compostable and for higher recovery rates across all materials.
Industry observers note that policy clarity will be critical in encouraging further private investment in sorting, processing and re-manufacturing capacity.
As discussions continue between industry and government, the direction of Australia’s packaging reform is being closely watched by international suppliers and brand owners. Decisions taken now could influence how packaging is designed, sourced and recycled in Australia for years to come.
