In a presentation delivered at the CeMAT / Industrial Transformation Expo in Sydney, Sandra Dal Maso, head of Packaging Transformation at the Australian Packaging Covenant Organisation (APCO), outlined the pressing need for packaging regulatory reform in Australia, and APCO’s role in steering the industry towards a harmonised, circular economy.
Dal Maso's session, part of an education day delivered by APPMA, provided clarity on where the sector stands, what’s needed to achieve packaging targets, and how the transition to Extended Producer Responsibility (EPR) will be shaped by collaboration and consultation.
A system in need of reform
Dal Maso opened with a snapshot of Australia's packaging landscape: around 7 million tonnes of packaging are placed on the market annually, with plastic comprising 1.1 million tonnes. While 86% of packaging has potential for recycling, only 19% of plastic packaging is currently recycled – far short of the 70% target. Despite a 44% average recycled content rate, the figure is skewed by the fibre sector’s strong performance, while progress across other materials lags.
The current regulatory framework, governed by the National Environment Protection Measure (NEPM), offers two compliance pathways – via APCO’s co-regulatory model or state-based regulation. However, Dal Maso described the system as fragmented, with inconsistent enforcement, duplicative obligations, and a lack of national harmonisation. This “puzzle box” structure, she argued, impedes progress towards Australia’s national packaging targets.
The vision for reform
To overcome these barriers, APCO is advocating for a nationally harmonised EPR framework regulated by the Commonwealth. This future model – likened to a “fast train” – would include:
- Mandatory packaging design standards
- Minimum recycled content requirements
- Clear brand owner liability
- Prohibition of harmful chemicals
- Robust traceability and reporting mechanisms
Such reform is essential, Dal Maso said, because voluntary action alone will not close the performance gap.
APCO’s strategic response
To support the transition, Dal Maso said, APCO has developed its 2030 Strategic Plan, which she described as a “a whole-of-system roadmap to drive sustainable packaging through industry leadership and shared responsibility”. She explained that the plan takes a lifecycle view of packaging – from design to recovery – and calls for equitable brand owner contributions, incentivised through modulated fees based on packaging recyclability and environmental impact.
Central to the plan’s development was a national consultation process conducted from March to May 2025. Over 220 organisations – including brand owners, NGOs, industry associations and non-members – provided input on potential EPR mechanisms, fee structures, and governance models. Key themes emerged from this consultation:
- A strong call for regulatory certainty and a clear timeline for reform
- The need for a fit-for-purpose, fair and flexible model that accounts for sector-specific challenges
- Support for a single national administrator to avoid duplication
- Concerns about data readiness and the ability of businesses to meet reporting requirements
In response, APCO has adjusted the proposed EPR implementation timeline – initially targeted for FY27 – acknowledging the need for further government alignment, better enforcement tools, and a mechanism to address free-rider behaviour.
The federal government’s role
While regulatory momentum is building, Dal Maso cautioned that government action is moving more slowly than industry would like. The federal government has proposed three options for reform: maintaining the status quo with enhanced enforcement, direct regulation of brand owners, or a nationally regulated EPR scheme aligned with APCO’s model. The third option has received broad industry support.
In the interim, Dal Maso said, APCO continues to collaborate with the Department of Climate Change, Energy, the Environment and Water (DCCEEW) on national packaging standards – including a recyclability framework – and to represent industry’s voice in shaping the new regulations.
What industry can do now
Dal Maso concluded with a clear call to action: stay informed, stay engaged, and contribute to the conversation. She urged all stakeholders, particularly brand owners, to monitor regulatory developments, engage with APCO consultation processes, and begin preparing internal systems and data to support EPR readiness.
“Each of you understands your organisation’s needs best,” she said. “Your voice matters in helping shape a model that works – for business, for the environment, and for Australia’s packaging future.”
