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Australia shelves new packaging laws over cost of living concerns

The Albanese government has shelved plans for new packaging standards aimed at reducing plastic waste, citing concerns about exacerbating cost of living pressures.

  • The Albanese government will not introduce a new Commonwealth scheme for packaging in this term of government.
  • The federal environment department stated the decision was made to avoid exacerbating cost of living pressures.
  • The shelved laws would have required producers to cut waste and boost plastics recycling.

The Albanese government has been accused of breaking a promise after shelving a commitment to introduce packaging standards designed to compel manufacturers and retailers to reduce plastic waste. The federal environment department informed industry representatives last week that the promise would not be fulfilled before the next election, citing a desire not to "exacerbate cost of living pressures."

The proposed laws, under development since a 2023 agreement between federal and state governments, would have mandated producers to reduce waste and increase plastics recycling. Potential rules included setting design standards, prohibiting certain chemicals, restricting excessive packaging layers, or limiting empty space within packaging. Other changes could have made producers responsible for packaging across its full life cycle.

Environment Minister Murray Watt stated the government aims to pursue reforms that balance environmental outcomes with broader economic needs, ensuring policies do not increase cost of living pressures. The government will instead collaborate with states and territories on opportunities to improve Australia’s packaging regulations in the nearer term.

Jeff Angel, director of the Boomerang Alliance, warned that "ongoing inaction and token measures won’t be tolerated." Cip Hamilton, plastics campaign manager at the Australian Marine Conservation Society, described the decision as "deeply disappointing." Chris Foley, chief executive of the Australian Packaging Covenant Organisation, noted that producers seek certainty, while Suzanne Toumbourou, chief executive of the Australian Council of Recycling, called for a "nationally consistent scheme with real targets."

Why this matters: The decision impacts efforts to reduce plastic waste and boost recycling in Australia, with packaging accounting for 59.5% of all litter reported by Clean Up Australia.

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