The Australian Competition and Consumer Commission’s (ACCC) Draft Determination to authorise Soft Plastics Stewardship Australia’s (SPSA) nationwide recycling scheme marks the most significant step yet in rebuilding the nation’s ability to recycle one of the hardest packaging formats in the waste stream.
For SPSA, the ACCC’s provisional green light is both a mandate and a motivator. It gives the independent, industry-led body the go-ahead to proceed with key establishment activities – from issuing a Request for Information (RFI) to potential service providers, to setting the initial levy that will fund the scheme. These measures will accelerate the shift from fragmented efforts to a coordinated, whole-of-supply-chain solution.
Rebuilding from the ground up
SPSA was established in August 2024 as a not-for-profit entity, consolidating the Australian Food and Grocery Council’s National Plastics Recycling Scheme (NPRS) and the major retailers’ Soft Plastics Taskforce. It brings together more than 40 brands and retailers that have voluntarily committed to funding and participating in a scheme designed to be transparent, accountable and built for the long term.
Joint CEO Barry Cosier says the ACCC’s move is a vote of confidence in industry’s capacity to “step up and take responsibility for the plastics we put into the market”.
“This is not just a collection program,” Cosier says. “It’s an end-to-end product stewardship model that matches collection volumes with real recycling capacity, incentivising investment in infrastructure so that capacity grows in a sustainable, responsible way.”
A phased path to scale
The ACCC’s Draft Determination supports SPSA’s three-phase authorisation strategy outlined in a previous PKN report:
- Interim authorisation – allowing SPSA to take over NPRS pilots in NSW, SA and Victoria, and to begin collecting the levy from brands and retailers.
- Draft authorisation – enabling procurement of recycling services via an RFI and subsequent RFP process.
- Final authorisation – permitting the scheme to operate for eight years, providing the stability investors need to build large-scale processing capacity.
Cosier emphasises the importance of the eight-year timeframe: “Most major recycling facilities need at least five years of predictable revenue to amortise costs. Shorter timeframes simply don’t stack up.”
The proposed levy – initially $160 per tonne, or roughly a cent per grocery item – will apply to the first importer or supplier of packaged goods. Funds will cover collection, sorting, processing, and end-market development. Discussions with APCO are underway to align definitions and avoid duplication with other packaging schemes.
Tackling the REDcycle legacy
One of SPSA’s early commitments is to help resolve the REDcycle stockpile issue – a legacy of the program’s 2022 collapse. While Coles and Woolworths have taken on primary financial responsibility, SPSA has negotiated an ethical cost-sharing arrangement with members, contributing $16 million over eight years to help offset the estimated $25 million clean-up cost.
“Brands from multiple retail channels contributed to that stockpile,” Cosier says. “It’s only fair that responsibility – and the cost – is shared.”
Stimulating demand for recycled content
The success of the scheme depends not only on collecting and processing soft plastics, but also on ensuring viable end markets for recycled resin. SPSA is actively working with recyclers such as iQRenew and encouraging brands to incorporate recycled content into their packaging.
“There’s over $500 million in value currently lost when virgin plastics go to landfill,” says SPSA’s head of marketing and development, Oscar Nicholson. “If we can capture and reuse that value locally, we keep resources in Australia and build a genuine circular economy.”
SPSA supports the introduction of mandatory recycled content targets, provided they are achievable and phased in line with material availability.
A call to industry
The ACCC’s Draft Determination opens a public consultation period ahead of a final decision expected in September. SPSA is urging brands, retailers and supply chain partners to join the scheme and help fund its expansion.
SPSA chair Bill Heague says the scheme’s credibility is rooted in collaboration: “We’ve already seen companies commit more than $30 million in funding, plus time and expertise. The more members we have, the greater our capacity to scale and deliver lasting environmental outcomes.”
Cosier’s message is clear: “This is the next evolution in waste diversion. We have a pathway to a functioning, circular solution for soft plastics – but we need everyone on board.”
