Businesses trading in Australia will soon face mandatory packaging regulations, with the federal government expected to introduce packaging design and labelling reform as landfill capacity in major cities approaches crisis point.
Edge Impact, a sustainability consultancy, says companies will be required to take a whole-of-system approach to packaging from material selection through to end-of-life disposal. The firm expects the new rules to apply to all businesses operating locally, including global e-commerce platforms and domestic brands.
The measures are aimed at ensuring all packaging is recyclable or compostable, includes minimum recycled content, and is free of harmful chemicals. Eco-modulated fees are also being considered, with companies potentially charged based on the environmental impact of their packaging.
Mike Twemlow, senior sustainability manager at Edge Impact, said that packaging design is central to Australia’s waste challenge. “Businesses must go beyond compliance and invest in clear packaging instructions to help consumers correctly dispose of waste,” he said.
The warning comes as landfill sites across the country approach capacity. Perth’s landfill is forecast to be full this year, while Melbourne’s Hampton Park and Sydney’s remaining sites are expected to reach capacity by 2028 and 2030 respectively. Brisbane’s system is also under pressure, with the Council of Mayors (SEQ) targeting a diversion of one million tonnes from landfill by 2030.
Edge Impact pointed to “wishcycling”, the incorrect disposal of non-recyclable packaging – as a significant contributor to contamination, with around 21 per cent of recyclable material ending up in landfill. Twemlow said inconsistent labelling and non-recyclable materials leave many consumers unable to make correct choices.
Edge Impact assists companies in meeting regulatory requirements and developing packaging solutions aligned with circular economy principles. These include redesigning supply chains, auditing material use, and creating packaging that can be reused or fully recycled.
At the least, businesses should be complying with current APCO sustainable packaging guidelines,” said Twemlow. “This will make it easier when the tougher reforms are introduced. Otherwise, they’ll be left scrambling.”
Edge Impact expects that non-compliance will carry financial penalties, particularly for companies using packaging that is not recyclable or compostable.
“Fast-product platforms are fuelling a disposable culture that Australia simply cannot sustain,” Twemlow said. “But any company using non-recyclable packaging is at risk. The government is done waiting. It’s only a matter of time before the compliance crackdowns are here.”
