A new ACCC-backed scheme could see soft plastic recycling soon return to major retailers following years of limbo.
The ACCC has issued a draft determination proposing to authorise a voluntary, industry-led scheme to collect and recycle soft plastic packaging from consumers, in a move aimed at tackling one of Australia’s biggest recycling challenges.
The scheme, to be run by Soft Plastics Stewardship Australia (SPSA), will target items such as shopping bags and food wrappers.
Initial members include Woolworths, Coles, Aldi, 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,” ACCC Deputy Chair Mick Keogh said.
The move comes after REDcycle collapsed in November 2022, following revelations it had stockpiled over 11,000 tonnes of soft plastics in warehouses across the country.
In response many REDcycle partners like Coles halted the sale of soft-plastic bags after the collapse left no viable alternative for collection and recycling for years.
The ACCC has previously authorised major supermarkets to work together under the Soft Plastics Taskforce to process the stockpile left over from the collapse of REDcycle, and to restart in-store collection pilots until July 2026.
“We believe the proposed scheme will result in an environmental benefit as it aims to take over and expand the current in-store collection and kerbside pilots for recycling soft plastic packaging, meaning some soft plastics are likely to be diverted from landfill,” Keogh said.
“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.”
The ACCC found that the public environmental benefits outweigh any potential detriment to competition resulting from collaboration under the SPSA scheme.
It proposes granting authorisation for eight years, with conditions for transparent reporting and a ban on exclusive contracts with processors.
Interim authorisation has also been granted, allowing SPSA to begin sharing operational data and transitioning arrangements from the Soft Plastics Taskforce.
Submissions on the draft determination close on 25 August 2025.
According to the Australian Packaging Covenant Organisation (APCO), more than 540,000 tonnes of soft plastic packaging was used in 2022–23, but only 6 percent was recovered.
Around 70 percent of this packaging is business-to-consumer.
The SPSA scheme will be funded by a levy on participants based on the amount of business-to-consumer soft plastic they place on the market.
The Australian Government is also pursuing broader reforms to packaging regulations aimed at reducing waste and supporting a circular economy, though these are separate to the SPSA initiative.
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