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Government drops mandatory recycled-content packaging targets, citing cost-of-living concerns

The federal government has abandoned its 2023 pledge to enforce national packaging standards that would require higher recycled-plastic content, saying it would worsen cost-of-living pressures.

The Albanese administration has quietly scrapped a promised Commonwealth packaging scheme that would have set minimum recycled-plastic percentages in packaging, arguing it could add to household cost pressures. A departmental email stated the minister will now focus on collaborative reforms with states and territories rather than a top-down mandate. Environment Minister Murray Watt emphasized the aim to harmonise recycling policy across jurisdictions to reduce waste and avoid price spikes for consumers.

Recycling industry leaders, including Mike Ritchie of MRA Consulting and Suzanne Toumbourou of the Australian Council of Recycling, said the reversal blindsided them and could lead to fragmented rules and reduced capacity, noting recent job losses at Recycling Plastics Australia. Greens spokesperson Steph Hodgins-May and independent MPs Kate Chaney and Sophie Scamps criticized the decision as a broken promise, pointing to public polls showing strong support for stricter plastic regulations.

Why it matters

The cancellation stalls national recycling targets, risking higher plastic waste and job losses in Australia's recycling sector.

In this story

mandatory packaging standardsrecycled plasticscost of livingstate and territory collaborationrecycling industryplastic wasteenvironmental policyjob losses
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