Australia updates circular economy strategy for packaging

Australia’s Department of Climate Change, Energy, the Environment and Water (DCCEEW) has updated its circular packaging economy strategy. 

In a statement, the DCCEEW affirms its commitment to help the packaging industry reduce single-use plastic, increase recycling, and introduce DRS and EPR schemes, in line with Australia’s National Packaging Targets (NPT). 

“The Australian government is committed to delivering fit-for-purpose packaging regulation as part of Australia’s transition to a circular economy,” a spokesperson from the DCCEEW tells Packaging Insights. 

“Through these reforms, the government is considering mandatory design requirements, including minimum thresholds of recycled content, recyclability labeling to support consumers, and prohibitions on the use of listed harmful chemicals and additives.” 

The NPT’s were established in 2018 to transition to a circular economy by 2025. The Australian Packaging Covenant Organisation is responsible for facilitating progress toward the NPT’s, but stated that while the initial 2025 deadline was not met, work is “continuing to accelerate progress.” 

Improving circular economy policies

The DCCEEW’s updated packaging circularity commitments state the department will continue to collaborate with state and territory governments to harmonize DRSs and curbside collection. 

The DCCEEW will support the phase-out of single-use plastics and harmful chemicals in packaging.Last year, the government of Western Australia announced it would include glass wine and spirit bottles in its DRS starting July 1, 2026. 

The spokesperson adds: “The harmonization of waste and recycling policies and programs across states and territories, such as Container Deposit Schemes and curbside collections, reduces regulatory burden and confusion for businesses, improves transparency, and increases efficiencies to enable improved recovery outcomes.” 

According to the department, it also undertook public consultation on packaging regulatory options in October 2024, including an EPR scheme for packaging, mandatory obligations, and consideration of targets.

Reducing single-use packs 

Moreover, the DCCEEW will also support the phase-out of single-use plastics and harmful chemicals in packaging.

The government of Southern Australia recently banned fish-shaped soy containers in the state’s latest round of single-use plastic bans to reduce marine and terrestrial pollution. However, it postponed its ban on non-compostable plastic fruit stickers after producers raised concerns about the cost of compostable alternatives.

But moves to ensure packaging circularity in Australia may be hindered by a weak plastic recycling industry. In a recent interview, Suzanne Toumbourou, CEO at the Australian Council of Recycling, told Packaging Insights that the country’s plastic recycling industry is at a “tipping point” and urged the government to intervene.