ACCC Backs Industry-Led Scheme to Boost Soft Plastics Recycling

The Australian Competition and Consumer Commission (ACCC) has issued a draft determination proposing to authorise the creation of a voluntary, industry-led program aimed at collecting and recycling soft plastic packaging from consumers, according to an official announcement.

As reported by the ACCC, the proposed scheme, to be managed by Soft Plastics Stewardship Australia (SPSA), will focus on recycling commonly discarded items such as shopping bags and food wrappers. Founding members include major retailers Woolworths, Coles, and Aldi, alongside food industry giants Nestlé, Mars, and McCormick Foods.

“It is clear that many Australians are concerned about the environmental impacts of soft plastic packaging and want to recycle it,” said ACCC Deputy Chair Mick Keogh in the statement.

According to the ACCC, this initiative builds on earlier approvals allowing major supermarkets to collaborate under the Soft Plastics Taskforce, which was established to address the stockpile left after the collapse of REDcycle. That approval also permitted in-store collection trials, which are authorised to run until July 2026.

Mr Keogh noted that the SPSA scheme is expected to deliver environmental benefits by taking over and expanding current in-store and kerbside collection pilots. “While we know that soft plastic recycling has faced many challenges in Australia, we consider that the SPSA scheme is an important stepping stone to expanding collections and recycling,” he said.

The ACCC said it believes the environmental benefits outweigh any potential harm to market competition. It proposes granting the authorisation for eight years, subject to transparency requirements, including public performance reporting and a condition prohibiting exclusive contracts with recycling processors.

An interim authorisation has also been granted, allowing SPSA to begin certain collaborative activities immediately, such as sharing operational information and transferring arrangements from the Soft Plastics Taskforce.

Public submissions on the draft determination are open until 25 August 2025, according to the ACCC’s website.

Source: ACCC