In a regulatory update at the Australasian Packaging Conference, Australian Packaging Covenant Organisation (APCO) CEO Chris Foley laid out the evolving national packaging policy landscape, signalling imminent reforms that will embed extended producer responsibility and eco-modulated fees into Australia’s packaging system.
A shift to accountability
Delivering a timely regulatory update at the conference, Foley painted a picture of an evolving framework for packaging regulation, as the nation moves towards a harmonised extended producer responsibility (EPR) system.
With political certainty returning following the federal election, Foley indicated the government’s pre-Christmas agenda on packaging reform would now accelerate. “If you’ve been hoping for a reset or a slowdown, I wouldn’t be expecting it,” he cautioned, adding that a sharper focus from government will follow once a new minister is confirmed.
Describing the current landscape as a “neat,full, jigsaw box with lots of moving parts,” Foley acknowledged that while some aspects of the national packaging system are functioning well, gaps remain. These include misalignment between state, territory and federal regulations, insufficient clarity on design standards, and a shortfall in investment across the recycling value chain.
Extended producer responsibility gains momentum
A centrepiece of the reform agenda is the implementation of an industry-led EPR scheme. According to Foley, 84 per cent of APCO’s members have indicated their support for EPR. The challenge now lies in bringing it to life in a practical, equitable way.
A phased approach is expected, with larger businesses likely to fall under the initial scope. “The bigger you are, the more likely you are to be in Phase One,” Foley said, noting that consultation is ongoing to determine appropriate thresholds.
The move will be guided by APCO’s post-2030 strategy, which builds on the transitional roadmap presented in August 2024. This strategy identifies three key levers for change:
- Service payments – the evolution of EPR fees into eco-modulated payments that reward better design and recyclability.
- Consumer education – a coordinated, multi-year plan to lift awareness and improve correct recycling behaviours.
- Supply chain facilitation – addressing niche and difficult-to-recycle materials through targeted collaboration.
Eco-modulation to influence design decisions
A significant change under the proposed EPR scheme will be the introduction of eco-modulated fees by 2027. These fees, adjusted based on the environmental performance of packaging, aim to incentivise improved design and material selection.
Foley clarified that the funds collected won’t be distributed through grants or used to acquire assets. Instead, they will be reinvested via “service contracts” to support infrastructure across the recycling value chain – from collection and sorting through to reprocessing. “We’re not here to compete with entrepreneurs. We want to facilitate and grow the system,” he emphasised.
He also acknowledged a critical gap in downstream investment. “Collectors, sorters, reprocessors – they won’t invest unless there’s something in it for them. We have to bridge that.”
Consumer education and system trust
Foley noted that while design for recyclability has progressed, 70 per cent of rigid plastics collected at kerbside still go to landfill, often due to consumer confusion, not technical limitations. “The infrastructure is there, the systems are there, but the consumer doesn’t understand,” he said.
To address this, APCO is advocating for a national, multi-year education roadmap that goes beyond short-term campaigns. This includes exploring school-based education and aligning messaging across jurisdictions. “We’ve invested so much in redesigning packaging, but we’re missing the final front end – the consumer and the household. We owe it to ourselves to fix that,” Foley said.
Tailoring reform to business size
Acknowledging concerns from the floor about fairness and the impact on SMEs, Foley confirmed that a tiered implementation is on the table. “We’re baking assumptions into the consultation paper about thresholds – whether that’s $50 million, $100 million, or more. But we need feedback from members to guide where that line should be drawn,” he said.
He added that part of APCO’s role as a co-regulator is to develop tools and resources to bring the wider system up to speed in a staged and supportive way.
Looking ahead
In closing, Foley underscored that while the regulatory framework is still being finalised, its direction is clear: national alignment, deeper brand owner responsibility, and a system that rewards circular design and sustainable outcomes.
With consultations closing imminently and strategy implementation looming, brand owners, suppliers, and the broader packaging value chain are urged to stay engaged.
“We know enough to know where the reforms are going. Now, it’s about how we bring it to life.”
