ACCC Backs Industry-Led Soft Plastics Recycling Plan

The Australian Competition and Consumer Commission (ACCC) has issued a draft determination supporting the creation of a voluntary, industry-run program to collect and recycle soft plastic packaging from households.

The initiative, to be managed by Soft Plastics Stewardship Australia (SPSA), would involve major retailers and manufacturers including Woolworths, Coles, Aldi, Nestlé, Mars and McCormick Foods. It aims to boost recycling of items such as shopping bags and food wrappers.

ACCC Deputy Chair Mick Keogh said many Australians are concerned about the environmental impact of soft plastics and want recycling options restored. The new scheme is intended to build on existing in-store and kerbside collection pilots, expanding efforts to divert plastics from landfill.

While soft plastic recycling in Australia has faced significant setbacks, including the collapse of REDcycle, the ACCC views the SPSA program as a critical step towards rebuilding and growing recycling capacity. The regulator believes the environmental benefits outweigh potential impacts on competition.

The draft authorization would run for eight years, with conditions to ensure transparency through regular reporting, and to prevent exclusive processing contracts. An interim authorization has also been granted, allowing SPSA to begin sharing operational data and taking over existing Soft Plastics Taskforce arrangements.

The program would be funded through a levy on participants, based on the volume of consumer-facing soft plastic they place on the market. Costs may be passed along the supply chain.

Submissions on the ACCC’s draft decision close 25 August 2025.

Data cited by the ACCC shows more than 540,000 tonnes of soft plastic packaging were used in 2022–23, yet only 6% was recovered. Around 70% was consumer packaging, underscoring the scale of the recycling challenge.

Source: accc.gov.au