VACC Calls for Mandatory Tyre Stewardship

According to reports from the Victorian Automotive Chamber of Commerce (VACC), Australia urgently needs a compulsory, co-regulated product stewardship scheme for end-of-life tyres as the House of Representatives’ Standing Committee on Industry, Innovation and Science continues its inquiry into the tyre industry’s role in advancing the circular economy. The organization stated that a mandated approach would establish clearer accountability from manufacturers and importers through to retailers and end users, replacing what it described as an inconsistent and inadequately enforced voluntary system.

According to VACC, more than 67 million tyres reach end of life nationally each year, and it is understood that around a quarter of Victoria’s volumes remain unaccounted for, contributing to illegal dumping, stockpiling risks, and competitive disadvantages for businesses operating responsibly. The chamber noted that New Zealand’s regulated model provides a working reference point for Australia, particularly as domestic operators continue to face rising compliance and waste-management pressures.

VACC further reported that the current voluntary stewardship scheme has delivered research benefits but has not significantly reduced collection costs or triggered sufficient investment in recycling and processing infrastructure. The organization argues that a compulsory national scheme could unlock new domestic markets, attract capital for advanced recycling technologies such as tyre-derived products, retreading, and chemical recycling, and ultimately strengthen Australia’s resource-recovery capabilities.

Chief Executive Officer Peter Jones said the industry requires consistent and enforceable rules, commenting that “the status quo simply isn't working for legitimate businesses.” He added that non-compliant operators—some engaging in unlawful disposal practices—continue to distort the market and create unacceptable fire and community safety risks. According to Jones, stronger penalties and clearer regulatory oversight are essential to protecting both the environment and legitimate operators.

Tyre Stewardship Australia (TSA) expressed support for the inquiry led by Rob Mitchell MP, noting in its statement that strengthening domestic markets is essential for meaningful circular outcomes. TSA further reported that reinforced circular systems could unlock roughly A$70 million in domestic market value and highlighted widespread industry endorsement at the recent “round trip summit” in Melbourne, where more than 200 international stakeholders called for greater reintegration of end-of-life tyres into Australia’s local economy.

Industry observers note that Australia’s tyre-recovery framework has long been constrained by uneven compliance and limited downstream markets. It is understood that the global transition toward extended producer responsibility (EPR)—already embedded in Europe and New Zealand—may intensify expectations for Australia to modernize its chemical-management standards, design requirements, and end-of-life processing pathways. A mandated scheme, according to sector analysts, could not only strengthen environmental safeguards but also recalibrate competitive fairness by ensuring that compliant businesses are no longer undercut by operators avoiding proper disposal obligations.

As policymakers consider long-term circular-economy strategies, VACC and TSA both argue that decisive government leadership will be crucial to harnessing recycling-driven job creation, improving safety outcomes, and positioning Australia for a more resilient tyre-recovery market.

Source: Victorian Automotive Chamber of Commerce (VACC)

SUNSHINE Spotlight: A national, mandatory tyre stewardship framework is emerging as the key to aligning environmental protection, market fairness, and circular-economy growth across Australia.