Australia shelves national packaging waste reform ahead of election

The Albanese government has told industry it will not introduce a promised Commonwealth packaging standards scheme in this term of parliament, citing cost-of-living concerns. The reform, agreed with states in 2023, would have set design rules on plastics use and packaging layers and made producers responsible for packaging across its life cycle. Environment minister Murray Watt said the government will instead work with states on harmonising existing packaging and recycling policy.

Why this mattersDelayed extended producer responsibility rules remove near-term regulatory pressure on Australian brand owners and packaging suppliers to redesign for recyclability.

• Packaging accounts for 59.5% of all litter reported in Clean Up Australia's annual litter reports.
• The federal-state packaging reform agreement dates to 2023 under then environment minister Tanya Plibersek.
• The federal environment department told industry via email last week that a new Commonwealth packaging scheme will not be introduced this term of government.
• Proposed rules would have restricted certain chemicals, excessive packaging layers and empty space in packaging.
• The government cited concern that reform costs could be passed on to consumers, for example in grocery prices.
• Industry bodies including the Australian Packaging Covenant Organisation and Australian Council of Recycling said the decision leaves recyclers without policy certainty.

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