Soft Plastic Stewardship Australia (SPSA) and its industry members have been granted an eight-year authorisation by the ACCC allowing them to collect and recycle used soft plastic packaging under a voluntary scheme.

The soft plastic collection and recycling scheme has been developed by food and grocery industry stakeholders, including Woolworths, Coles, ALDI, Nestlé, Mars and McCormick Foods, but will be run by SPSA.

The scheme aims to increase the collection and recycling of soft plastic packaging from consumers, such as shopping bags and food wrappers.

The ACCC was not involved in the design of the scheme and is not involved in its operations. SPSA and its industry members applied to the ACCC to have their collaboration in relation to this scheme be exempt from some of Australia’s competition laws. The ACCC may grant an exemption, called an ‘authorisation’, if it finds there is an overall public benefit.

“As the scheme aims to acquire and broaden the current instore and kerbside trial collection programs for soft plastic recycling, we’ve determined that it will likely result in some soft plastics being diverted from landfill,” ACCC Deputy Chair Mick Keogh said.

“We consider this is an environmental benefit.”

Industry participants will pay a fee based on how much soft plastic packaging they generate each year.

“It is clear from the ACCC’s consultation process that many Australians want to recycle soft plastic packing and are concerned about its environmental impacts,” Mr Keogh said.

“The recycling and collection options currently available to consumers are limited, and we consider that the SPSA scheme is an important way to expand those choices.”

Broader issues of policy and regulations around soft plastics, including decisions about whether to introduce mandatory regulations, are beyond the scope of the ACCC’s role as the competition regulator and administrative decision-maker for the current application.

“We don’t consider that the SPSA scheme will delay or deter other regulatory approaches to soft plastic stewardship,” Mr Keogh said.

 The ACCC’s exemption is subject to the following conditions:

• SPSA must complete annual public reporting about the performance of the scheme to ensure its transparency;
• The scheme must be independently reviewed in the third and seventh year of its operation and these reviews must consider recommendations for improvements to the scheme’s operations and governance;
• SPSA’s board must include at least two independent directors; and
• SPSA cannot enter into exclusive contracts with processors.

More information, including the ACCC’s draft determination, is available online on the ACCC’s public register at Soft Plastic Stewardship Australia Limited.

AFGC celebrates major industry milestone with ACCC authorisation

The Australian Food and Grocery Council (AFGC) celebrates the ACCC’s eight-year authorisation of the Soft Plastic Stewardship Australia (SPSA), enabling industry to collect and recycle soft plastic packaging under a voluntary scheme, a vital step toward rebuilding Australia’s soft plastics recycling capability and advancing a circular economy for packaging.

AFGC CEO Colm Maguire said the authorisation is a major milestone that builds on the AFGC’s foundational work to design and develop a new soft plastics stewardship model.

“The AFGC took early and decisive action to lead the development of a new, industry-led solution for soft plastics,” Mr Maguire said. “In 2020, we commenced work on the stewardship model that, in conjunction with the Soft Plastic Taskforce, became the foundation for what is now Soft Plastics Stewardship Australia (SPSA). This model was built on transparency, shared responsibility, and collaboration across the entire supply chain, from brands and packaging suppliers to retailers and recyclers.”

Mr Maguire also acknowledged the early leadership of former CEO Tanya Barden, a true sustainability champion, in shaping the soft plastics stewardship model. He also recognised the significant contributions of Barry Cosier, whose work during his time as AFGC’s Director of Sustainability helped lay the foundation for the initiative and continues through his role at SPSA.

Mr Maguire said the ACCC’s authorisation provides the certainty and confidence needed for industry to invest and scale the scheme.

“This decision recognises that solving Australia’s soft plastics challenge requires industry to work together under clear governance and accountability. It enables our sector to turn commitment into action, establishing the systems and infrastructure needed to recover and recycle soft plastics safely and sustainably,” he said.

Under the authorisation, SPSA members will jointly fund and operate a national collection and recycling program for soft plastics, supported by strong oversight including public reporting, independent reviews, and independent directors on the board.

“The food and grocery sector is proud to have helped shape this scheme from the ground up,” Mr Maguire said. “We congratulate all SPSA members and stakeholders for their commitment and collaboration. The authorisation gives industry the green light to deliver a credible, long-term recycling solution that restores consumer trust and helps Australia meet its national packaging and waste-reduction goals.”