EXCLUSIVE: With an ACCC application now in motion, Soft Plastic Stewardship Australia is poised to unify industry efforts and build the foundation for a national soft plastics recycling system.
The long-awaited next step in solving Australia’s soft plastics crisis is underway, with Soft Plastic Stewardship Australia (SPSA) lodging an application to the Australian Competition and Consumer Commission (ACCC) for interim and long-term authorisation to operate a national, industry-led recycling scheme.
The move marks a major milestone in the development of a unified system for soft plastic collection and recycling, following the collapse of REDcycle in 2022 and subsequent efforts by retailers and the Australian Food and Grocery Council (AFGC) to stabilise and restart the sector.
“There’s been a lot of hearsay and misinformation, and now’s the time to cut through that with a clear account of what the scheme is, and of our plan,” said Barry Cosier, joint CEO of SPSA.
Rebuilding with stronger foundations
SPSA, established in August 2024 as an independent, not-for-profit body, brings together the key work streams of the AFGC’s National Plastics Recycling Scheme (NPRS) and the major retailers’ Soft Plastics Taskforce. The goal, Cosier tells PKN, is to build a scheme that is transparent, scalable and grounded in global best practice.
The organisation has already secured voluntary contributions from over 40 members, including leading brands and retailers. It is governed by a board comprising brand owner and retailer representatives, with independent directors and small-to-medium enterprise (SME) voices to be appointed. SPSA is also forming a Stakeholder Advisory Council to ensure broad input from recyclers, processors, NGOs, government agencies, academics and other experts.
Cosier says the scheme is designed with “credibility front of mind”, learning from past failures.
“This is not just a recycling scheme – it’s an end-to-end product stewardship model,” he said. “We’re being extremely careful not to overpromise and underdeliver. We’ll only collect as much as can actually be processed and sold into end markets.”
What’s in the ACCC application?
The application SPSA has submitted to ACCC, and which is now open for public consultation, outlines a three-phase approach:
1. Interim authorisation, allowing SPSA to take over the operation of existing NPRS pilots in New South Wales, South Australia and Victoria, and to begin collecting a levy from brands and retailers.
2. Draft authorisation, enabling SPSA to commence the procurement process for recycling services through a request for information (RFI) and request for proposal (RFP) process.
3. Final authorisation, which would give SPSA approval to operate the full scheme for eight years, providing long-term certainty for investment in recycling infrastructure.
“We’re asking for eight years to give investors the confidence they need to build infrastructure,” Cosier explained. “Most large-scale facilities need at least five years of stable revenue to amortise their costs – less than that, and it’s just not viable.”
The proposed levy – set at an initial rate of $160 per tonne, or roughly a cent per grocery item – is intended to fund collection, sorting and processing activities. It will apply to the first importer or supplier of packaged goods, following the definition used by APCO and CDS schemes. Discussions with APCO are underway to ensure industry alignment.
“The levy unlocks the ability to fund infrastructure,” said Cosier. “It’s small at the item level, but collectively it gives us the means to operate a viable system.”
Addressing the stockpile legacy
One critical legacy issue is the REDcycle stockpile. Having the stockpile has enabled research and development to accelerate the development of onshore processing. While the legal responsibility for remediation lies with Coles, Woolworths and Aldi, who were given ACCC authorisation to collaborate on its management, SPSA has negotiated an ethical cost-sharing agreement with brand members to fund part of the clean-up.
The scheme proposes to contribute $16 million over eight years, reimbursing retailers for a portion of the estimated $25 million cost.
“The retailers have the legal obligation, but we have an ethical obligation,” Cosier said. “Brands from multiple retail channels contributed to that stockpile, so it’s only fair they help cover the cost of remediating it.”
Building market demand and recycled content
Beyond collection and processing, the scheme’s success will depend on strong end-market demand for recycled materials. SPSA is actively encouraging brands to consider using recycled resin in their packaging components, working closely with recyclers such as iQRenew to demonstrate feasibility.
“There’s over $500 million in value locked up in virgin plastic we currently throw away,” said SPSA’s head of marketing and development Oscar Nicholson, who is leading scheme marketing and industry engagement. “If we can recycle and reuse it here, that value stays in Australia and supports a truly circular economy.”
To stimulate demand, SPSA supports the introduction of mandatory recycled content targets, as long as they are achievable and phased in line with availability.
“In a future product stewardship environment, brands would pay to collect and recycle, then pay again to buy recycled content – it’s a double hit,” said Cosier. “Mandatory scheme participation would level the playing field and drive long-term viability.”
A call for collaboration
With the ACCC application now entering the public consultation phase, SPSA is calling on industry to engage, participate and support the scheme by joining as members.
“Industry is stepping up,” said Cosier. “We’ve already had companies contribute more than $30 million in funding, plus time and effort. Now we need broader support to scale this responsibly.”
The scheme aims to start carefully, building as infrastructure, demand and regulation align. Cosier notes that while the transition may take time, the alternative – inaction – is no longer tenable.
“We welcome regulation. The more members we have, the more we can do. This is the next evolution in waste diversion – and we need everyone on board.”
About SPSA
Soft Plastic Stewardship Australia Limited (SPSA) is an independent, not-for-profit body formed in August 2024 to develop and manage a national soft plastics recycling scheme. The scheme is voluntary, industry-led, and designed to reduce landfill waste, increase onshore recycling capacity, and drive progress towards Australia’s 2030 packaging targets. SPSA brings together the efforts of major retailers and the AFGC’s NPRS under a unified governance model.
