The Australian Competition and Consumer Commission (ACCC) has moved to authorise a new voluntary scheme designed to lift the recovery of soft plastic packaging, in what it calls an important step towards reducing landfill and building Australia’s recycling capacity.
The Soft Plastic Stewardship Australia (SPSA) program, led by major supermarkets and food manufacturers including Woolworths, Coles, Aldi, Nestlé, Mars and McCormick Foods, aims to expand consumer collection points for soft plastics such as shopping bags, bread bags and food wrappers.
ACCC deputy chair Mick Keogh says Australians have made it clear they want solutions for soft plastic waste. “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,” he says.
The scheme builds on work undertaken by the Soft Plastics Taskforce, which was authorised to address the stockpile left after the collapse of REDcycle. That interim authorisation, due to run until July 2026, has enabled supermarkets to trial in-store drop-offs and kerbside collections. The SPSA scheme is intended to take over these pilots and extend them nationally.
From pilot projects to nationwide rollout
Under the proposal, the scheme will run for eight years with conditions requiring transparency in reporting and a ban on exclusive processing contracts. It will be funded through a levy on participating businesses, based on the amount of consumer-facing soft plastic they place on the market. Costs could be passed through the supply chain, including to shoppers.
The ACCC has already granted interim authorisation to SPSA to allow operational data sharing and a smooth transfer of existing arrangements from the Taskforce. Submissions on the draft determination are open until 25 August 2025.
Keogh acknowledges soft plastic recycling has faced major challenges in Australia, but sees the new scheme as a critical platform for scaling up solutions. “We consider that the SPSA scheme is an important stepping stone to expanding collections and recycling,” he says.Industry data from the Australian Packaging Covenant Organisation shows more than 540,000 tonnes of soft plastic packaging was produced in 2022–23, yet only six percent was recovered. With around 70 percent of that waste coming from consumer use, the SPSA program will focus squarely on closing the loop for everyday items and advancing Australia’s shift to a circular packaging economy.
