The Australian Packaging Covenant Organisation (APCO) has released its FY26–27 Business Plan and Statement of Intent, signalling a shift toward stronger national alignment, clearer packaging standards and better data systems as industry prepares for a more regulated packaging environment. Designed through extensive consultation, the plan sets out a three-year program intended to equip APCO members for strengthened obligations expected to solidify by FY28.
The plan opens with a clear acknowledgement of the transition already underway. As APCO CEO Chris Foley says, “Australia’s packaging system is evolving, and across the country our members are leading that change”.
Businesses are redesigning packaging, improving recyclability and strengthening data systems, and APCO says these efforts are setting the pace for the wider system.
“This plan is about stepping up – and that work is already well underway,” says Foley. “We are strengthening the systems and processes needed for support with looming regulatory reforms.”
Member feedback: support for EPR, with conditions attached
One of the strongest themes emerging from APCO’s 2025 consultation process was industry’s support for Extended Producer Responsibility (EPR), provided that it is introduced with firm and nationally consistent rules. Foley reflects this in the plan, noting that members “support EPR, but it must be backed by stronger regulation that provides clear rules, stronger alignment across the system, and confidence that early action will be recognised and protected”.
Industry also highlighted the need for simpler design and reporting tools, clarity around labelling, and trust in stewardship pathways, especially for soft plastics. These concerns reflect a fragmented regulatory landscape in which differences across states have heightened compliance complexity. APCO notes that its program of work “strengthens our advocacy, seeks greater regulatory certainty, [and] supports and protects industry leadership through this transition” .
Five core focus areas
The Business Plan sets out a 36-month program built around five strategic pillars. Together, these are intended to create a more aligned and future-ready packaging system. The focus areas include Packaging Standards and Design, the Australasian Recycling Label (ARL), Reporting and Packaging Data, EPR and Soft Plastic Stewardship, and Government Relations.
1. Strengthening packaging standards and design
APCO is updating its Sustainable Packaging Guidelines, with technical input provided by its Material Stewardship Committees. The revised guidelines aim to deliver clearer and more practical design direction capable of supporting future national packaging design requirements.
Additional work is progressing on compostability guidance, PFAS and emerging chemicals, and new case studies that illustrate best practice for different material types and formats.
2. Enhancing the Australasian Recycling Label
The ARL program is undergoing a detailed review to ensure that it remains robust and aligned with future regulatory settings. Insights from a major Kantar study have reaffirmed strong consumer recognition and trust in the label, while identifying opportunities to refine iconography and brand use. APCO is also exploring new ARL options for away-from-home disposal settings, including public-place bins and workplaces.
3. Improving reporting, data and governance
Recognising the global move toward more verifiable packaging data, APCO will introduce clearer reporting definitions, simplified reporting tools and improved user support. The recent Australian Packaging Consumption and Recovery Data for 2023–24 shows 6.84 million tonnes of packaging placed on the market, with a national recovery rate of 59 per cent and plastics identified as a major system challenge . These insights will feed into future standards, ARL rules and stewardship settings.
4. EPR and soft-plastic stewardship
APCO’s work with Soft Plastic Stewardship Australia (SPSA) continues to advance an industry-led soft plastics pathway. Development of a Stewardship Assurance Framework is underway to provide transparency in governance, participation requirements and readiness assessments for Producer Responsibility Organisations.
Pilot projects, including a B2B polypropylene food pail recovery trial, will help test operational models and inform future EPR settings.
5. Government relations and national alignment
APCO has committed to stronger engagement with state and federal governments. This includes a ministerial letter articulating industry’s reform priorities, targeted briefings between brand owners and decision-makers, and collaboration with ACOR on the Advancing Plastics Recycling in Australia (APRA) project, which examines pressures on domestic reprocessors and potential policy responses. These activities are intended to support “national regulatory reform that supports industry leadership” and ensure that policy “enhance[s], not complicate[s], the good-faith efforts businesses are making” .
Preparing for FY28 and the transition to regulated EPR
APCO’s plan places strong emphasis on building the systems and capability required for a regulated EPR framework by FY28. This involves progression from foundational system building in FY26 to capability and alignment in FY27. As Foley writes, “FY26 focuses on strengthening the foundations members need to act with confidence,” while FY27 “builds capability and alignment” as governments outline their expectations .
By FY28, APCO expects to see accurate and verifiable data, clear improvements in packaging design, a strengthened ARL program and credible stewardship pathways to support the regulated EPR environment. Foley concludes: “Our members are doing the right things by investing in better design, improving recyclability, and driving more sustainable outcomes. This plan backs those efforts, supports early action, and strengthens the system” .
Ed’s note:
The FY26–27 plan marks a decisive shift toward a more disciplined, data-driven and nationally aligned packaging system. If APCO delivers on the foundations it has outlined, the Australian market could finally move beyond the fragmentation that has slowed progress in recent years and into a phase where design standards, labelling rules and stewardship requirements are clear, predictable and nationally consistent. This would reduce compliance complexity for brand owners, strengthen investment confidence for recyclers and processors, and ensure that early action by industry is recognised rather than penalised. While success will depend on continued government alignment and active member participation, the plan sets out a credible pathway that could reshape packaging stewardship in Australia and transition the sector from reactive regulatory cycles to a more coherent, long-term system architecture.
