New government funding will expand hard-to-recycle plastics recycling infrastructure in New South Wales (NSW), with the aim of diverting tens of thousands of tonnes of waste from landfill each year and supporting local manufacturing and jobs.

The Australian and NSW governments have jointly allocated A$11.2m to two regional projects under broader national and state recycling initiatives, representing part of a larger effort to strengthen the plastics circular economy nationally.

Regional recycling projects funded

The funding will support upgrades to existing facilities and the establishment of new recycling capacity for plastics that were previously difficult to process.

iQRenew in Kundle Kundle on the Mid North Coast received A$9.1m for plant upgrades to sort and process up to 10,000 tonnes of household-sourced soft plastics each year.

The expanded capability is expected to produce recycled resin for use in a range of products, from packaging components to building materials such as fence posts, bricks and furniture.

In Tamworth, a new plastics recycling facility backed by the Tamworth Regional Council and 11 neighbouring councils will receive A$1.9m. This facility is designed to process around 7,000 tonnes annually of hard-to-recycle plastics such as crates and pallets into materials suitable for remanufacture.

 Both projects are projected to create ongoing and construction jobs in regional communities.

Investment context and capacity growth

The A$11.2m in funding is equally shared between the NSW Government’s Waste Less Recycle More program and the Australian Government’s Recycling Modernisation Fund, which has committed more than A$200m to new and upgraded recycling infrastructure across the country.

Combined with co-investment from states, territories and industry, the fund is expected to leverage around A$1bn in total investment.

In addition to the two regional plastics recycling projects, 38 other initiatives in NSW have secured joint government funding totalling A$43.1m. These are anticipated to add over 175,000 tonnes of recycling capacity annually and encourage further infrastructure investment in the state.

Environmental pressure and policy drivers

Plastics recycling capacity has been a major focus of waste policy in Australia, where rates for recycling hard-to-process plastics remain low compared to total waste generation.

Local media and environmental data highlight challenges with soft plastics and other packaging materials, with broader plans aiming to reduce landfill pressure and improve recovery rates.

Experts have noted that facilities that can convert mixed and soft plastics into high-quality inputs are central to achieving circular economy targets and meeting long-term regulatory goals.

The NSW Government has previously emphasised that growing landfill constraints, particularly around Sydney, make enhanced recycling infrastructure critical to future waste management strategy.

Planned bans and phased reductions of certain single-use plastic items underscore the policy environment driving investment in recycling capacity.