A $130 million change was meant to hit your supermarket shelves. Then the government backflipped
Australia’s plastic recycling industry is collapsing after the federal government walked away from promised packaging regulations, leaving plant operators facing financial ruin and sending millions of tonnes of waste back into landfill.
About 85 per cent of plastic Australians throw out never gets recycled, instead, about 3 million tonnes of the toxic rubbish is buried in the ground each year.
Currently, only 14 percent of plastic packaging in Australia ever gets recycled. 60 Minutes
It’s a problem that’s been piling up since the government banned the export of plastic waste in 2020.
However, under reforms announced in 2023, the federal government backed a $130 million package designed to mandate that plastic packaging sold in Australia contain locally recycled content.
The policy promised to turn domestic rubbish into a valuable commodity and clean up the estimated three million tonnes of plastic buried in landfill each year.
Relying on Canberra’s commitment, Australian recyclers invested hundreds of millions of dollars in advanced infrastructure. Now, it has walked away from those mandates.
Environment Minister Murray Watt confirmed the pause, arguing that forcing manufacturers to retool packaging could increase grocery prices during an acute cost-of-living crunch.
“As a government, we need to balance a range of factors, we need to balance the environmental impacts of plastic use and landfill,” he said.
“We need to balance the interests of recyclers wanting to remain viable.
“We’ve also got to balance the cost of living pressures that Australians are under when they make their choices at supermarkets.”
Environment Minister Murray Watt has made a decision that will allow foreign companies to continue the free flow of cheap and toxic plastic into Australia. 60 Minutes
The retreat has sent shockwaves through the supply chain after at least six operators have entered administration recently, including a South Australian facility that absorbed $20 million in public funding before shuttering.
Australian Council of Recycling chief executive Suzanne Toumbourou disputed the government's economic justification, citing modelling that estimated the reform would add between six and 50 cents weekly to household expenses.
“I don’t buy that for a second,” Toumbourou said.
“In terms of plastic recycling, it is at breaking point.
“We have banned the export of plastic waste to other countries, we’re a net importer of this material.”
Australian Council of Recycling CEO Suzanne Toumbourou says there’s a huge stench wafting through her industry. 60 Minutes
“Around 90 per cent of plastic that we use in this country comes in from overseas so we have to recycle it here,” she added.
“At the end of the day, consumers are going to be paying the price for the waste that is generated through our landfills, through our waste management costs, through litter in the environment.”
“We’ll pay economically for lost jobs, not only in our sector, but the supply chains that support it.”
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