Independent MP Kate Chaney has criticised the Albanese government for abandoning plans to introduce mandatory national packaging standards, calling the decision “deeply disappointing” and questioning the claim that the reforms would worsen cost-of-living pressures.
The federal government had committed in 2023 to developing national rules aimed at reducing plastic waste, including minimum recycled-content requirements and restrictions on harmful chemicals in packaging. However, the Department of Climate Change, Energy, the Environment and Water has now told stakeholders that a new Commonwealth packaging scheme will not be introduced during this term of government.
Instead, Environment Minister Murray Watt says the government will work with states and territories to harmonise existing packaging and recycling policies. The government argues this approach can improve environmental outcomes while reducing inconsistencies for businesses and minimising costs for consumers.
The reversal has angered recycling and sustainability groups, which say they were blindsided after years of consultation. Industry representatives warn that without mandatory national requirements, Australian recycling businesses face uncertainty and may struggle to compete with cheaper imported plastics. The decision comes as Recycling Plastics Australia, which previously received $20 million in federal funding, enters voluntary administration.
Chaney said the government was walking away from a rare opportunity in which industry and communities were aligned on the need for reform.
"Industry wants certainty, communities want the pollution to stop, and both point to the same reform. This is a rare moment of alignment, and the government is letting it pass."
She also challenged the government's justification that mandatory standards could increase household costs. Chaney pointed to the existing cost of waste collection and clean-ups, saying kerbside collection and council services already cost ratepayers between $70 and $95 a year.
"The government points to cost of living, but the numbers don't support that," Ms Chaney said.
Waste industry consultant Mike Ritchie similarly questioned the government's position, noting that no regulatory impact statement had been completed for the proposed Commonwealth scheme. His modelling suggested mandatory recycling standards could add only around 0.3 cents per packaged item, or roughly 20 cents to a weekly shop containing 60 packaged products.
The government has not publicly provided economic modelling showing that national packaging standards would substantially increase living costs.
Australia continues to recycle or reuse only a relatively small proportion of its plastic packaging. In 2023-24, 28 per cent of rigid plastics and just 9 per cent of soft plastics were reused, recycled or reclaimed.
Other crossbenchers and the Greens have also criticised the decision. Independent MP Sophie Scamps accused the government of breaking another promise, while Greens waste spokesperson Steph Hodgins-May said the government had failed to demonstrate that costs justified delaying reform.
Chaney’s intervention centres on both environmental responsibility and economic certainty, arguing that the government has failed to take advantage of broad support from industry and the community for stronger national packaging rules.