Australia delays packaging EPR amid calls for clarity and fairness

The Australian Packaging Covenant Organisation (APCO) has announced it will not proceed with the introduction of its proposed EPR fee model in the 2027 fiscal year, following stakeholder demand for greater regulatory certainty and free rider management.

APCO, which manages the Australian Packaging Covenant under the National Environment Protection Measure 2011, states that while there was “strong support” for the intent of EPR, stakeholders called for more governance and greater transparency.

A spokesperson from APCO tells Packaging Insights: “The proposed fee model, with a ‘base fee + EPR fee’ structure, will not be introduced in 2027. Fees for the fiscal year 2027 will continue to be calculated using the current turnover-based model.”

“This pause will allow APCO to further refine the model in collaboration with members, ensuring considerations including the management of free riders, emerging regulatory settings, and processes for the maintenance of transparency are taken into account, along with governance and oversight mechanisms.”

“In the next few months, APCO will share a full consultation summary and more information on next steps with members, focused on refining a model that is fit for purpose to achieve packaging sustainability goals.”

The packaging industry wants clear governance, regular reporting, and a defined process for member input.APCO will maintain its current structure for fiscal year 2027, with adjustments continuing to align with the consumer price index and other cost recovery needs.

Industry response

Consultation feedback underscores the need for national consistency in the packaging regulatory framework. Businesses caution against overlapping obligations and unclear roles, particularly in the absence of confirmed government policy.

While many support the principle of producers taking greater responsibility, they emphasize that EPR needs to be matched with transparency, capability, and equity across the entire system.

The packaging industry stresses that a clear value proposition behind any fee increases is needed. “Many businesses have invested in upgrading packaging despite working on thin margins and want to see this recognized in the fee design,” says APCO.

“The industry told us that packaging data requirements are already complex, and increasing the burden without adequate support could backfire. Assurance requirements, in particular, need to be fit-for-purpose and proportionate.”

Sector-specific challenges are another point of emphasis. “Whether it’s food safety, therapeutic goods, compostables, or existing stewardship schemes, a one-size-fits-all approach won’t work,” adds APCO.

“Although applicable to a minority of situations, a few members want us to explore how exemptions, discounts, and special conditions can be applied in a way that’s fair, evidence-based, and aligned with national goals.”