ACCC authorises new industry-led soft plastics recycling scheme

A step forward for Australia’s soft plastics recycling has been announced, with the Australian Competition and Consumer Commission (ACCC) issuing a draft determination to greenlight a new, industry-led scheme.

This move is poised to transform the way Australians dispose of their shopping bags, food wrappers, and other soft plastic packaging, shifting a significant volume of waste from landfill to a circular economy.

The proposed scheme, spearheaded by Soft Plastics Stewardship Australia (SPSA), is a collaborative effort between some of the nation’s biggest names in retail and food manufacturing. Initial members include supermarket giants Woolworths, Coles, and Aldi, alongside major producers Nestlé, Mars, and McCormick Foods.

ACCC Deputy Chair Mick Keogh highlighted the scheme’s significance, stating, “It is clear that many Australians are concerned about the environmental impacts of soft plastic packaging and want to recycle it.”

According to data published by the Australian Packaging Covenant Organisation (APCO), more than 540,000 tonnes of soft plastic packaging were used by manufacturers in packaging their products between 2022 and 2023; however, only six per cent of this was recovered.

The soft plastic packaging comprised both business-to-consumer and business-to-business packaging (such as wrapping goods on pallets). It is estimated that 70 per cent of soft plastic packaging is business-to-consumer.

The new program is set to take the baton from the temporary Soft Plastics Taskforce, which was established to manage the fallout from the REDcycle collapse and run essential in-store collection pilots.

“We believe the proposed scheme will result in an environmental benefit, as it aims to take over and expand the current in-store collection and kerbside pilots for recycling soft plastic packaging, meaning some soft plastics are likely to be diverted from landfill,” Keogh said.

“While we know that soft plastic recycling has faced many challenges in Australia, we consider that the SPSA scheme is an important stepping stone to expanding collections and recycling.”

The ACCC is proposing to grant authorisation for eight years, acknowledging that the environmental benefits of this collaboration outweigh any potential competition concerns.

It has also included conditions to ensure the scheme’s integrity and a level playing field. Transparency will be a key focus, with a reporting condition to track performance. Furthermore, a non-exclusive contract clause for processors will prevent market monopolisation, ensuring multiple players can participate in the recycling chain.

With interim authorisation already granted, SPSA can begin transitioning data and operational information from the existing taskforce. This means the groundwork for a more permanent, national solution is already underway.

The waste and recycling community can weigh in on the decision. Submissions on the ACCC’s draft determination are open until August 25, 2025, offering a final opportunity for stakeholders to provide feedback before the scheme is formally authorised.

For more information, visit: www.accc.gov.au