The Battery Stewardship Council (BSC) has been granted an exemption for the next five years by the ACCC to allow it to continue to operate its B-cycle Battery Stewardship Scheme (Scheme). Following the decision, BSC members and industry participants can continue to operate the Scheme without breaching competition laws.
The Scheme aims to significantly increase appropriate end-of-life battery disposal and recycling in Australia.
"We consider the Scheme is likely to result in environmental benefits by diverting batteries from landfill as well as reducing fire risks in the collection, transport, sorting, and processing of end-of-life batteries," ACCC Deputy Chair Mick Keogh said.
"It should also support some increased research, development and innovation in the disposal and re-use of end-of-life batteries in Australia."
The ACCC's role is to assess the application put before it and to determine whether the proposed conduct is likely to result in an overall public benefit, which was satisfied in this instance.
The ACCC recognises that in part, due to the voluntary nature of this Scheme, participation rates and therefore the number of batteries collected and recycled has been relatively low.
Interested parties have raised broader policy issues around battery stewardship, including that participation should be made mandatory, and the scope and operation of the Scheme.
"The ACCC recognises that higher rates of participation in battery stewardship would substantially increase public benefits from greater collection and recycling of batteries. However, it is not our role to develop such a scheme," Mr Keogh said.
"It is also not the ACCC's role to determine public policy outcomes or broader policy issues, including regulation reform to make battery stewardship mandatory. This is a matter for governments".
"Minimising the safety risks associated with storing button batteries must continue to be a priority," Mr Keogh said.
"Therefore, we have imposed a condition in our authorisation that the BSC continues its Button Battery Safety Strategy, which aims to educate consumers and mitigate the risks associated with button batteries, such as the serious injuries they can inflict on children when ingested."
The ACCC recognises that the BSC has undertaken broad consultation with industry stakeholders on approaches to the Scheme's design and protocols.
However, to ensure this dialogue continues, the ACCC has imposed a condition requiring the BSC to create, publish and implement a consultation protocol outlining the consultation process with Scheme participants should certain changes to the Scheme be made throughout the authorisation period.
To ensure sufficient transparency and effectiveness of the Scheme, the ACCC has also required an annual report on key Scheme outcomes and targets to be published by the BSC. An independent review of the Scheme's performance, governance and financial position must be undertaken in three years' time.
The ACCC considers a three-year timeframe to commence an independent review allows sufficient time for the BSC to implement its proposed improvements to the Scheme and for measurable outcomes to be assessed.
Interested parties have proposed a shorter authorisation period of two to three years due to uncertainty around the introduction of mandatory product stewardship legislation.
"The ACCC does not consider the authorisation replaces or diminishes government's role or ability to act in relation to product stewardship arrangements for batteries as the two processes are largely independent of each other" Mr Keogh said.
More information, including the ACCC's draft determination, is available online on the ACCC's public register at Battery Stewardship Council.
Note
The ACCC is not an environmental regulator or policy agency. The ACCC's role as Australia's competition regulator includes assessing applications for authorisation. ACCC authorisation provides statutory protection from court action for certain conduct by competitors that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010 (Cth) (the Act).
The ACCC must not make a determination granting authorisation unless it is satisfied, in all the circumstances, that the conduct would likely result in a benefit to the public and that benefit would likely outweigh any potential detriment from the conduct. In this instance, authorisation is proposed in respect of Division 1 of Part IV (cartel conduct), section 45 and section 47 of the Act (contracts, arrangements or understandings that restrict dealings or affect competition, and exclusive dealing).
Background
Product stewardship is an environmental management strategy that means whoever designs, produces, sells or uses a product takes responsibility for minimising that product's environmental impact through all the stages of its life cycle.
The BSC is a not-for-profit entity established to operate and oversee the Scheme, which promotes the safe collection, recycling, and disposal of end-of-life batteries. The Scheme does not cover automotive lead-acid batteries or batteries already included in other recycling programs.
The proposed conduct also adds an annual review process to set the levy and rebates using eco-modulated formulas based on battery type to cover the increased costs and risks of battery collection and recycling. The BSC's proposal seeks to raise sufficient revenue that it can continue to implement public awareness campaigns to increase participation in battery recycling.
On 4 June 2025, the ACCC granted interim authorisation with a condition for the BSC to continue operating the Scheme with the ability to increase levies to reflect increases in the Consumer Price Index since the Scheme's commencement. The BSC is also able to progress the development of new levy arrangements involving an eco-modulated levy to reflect the different costs of collecting and recycling different battery types, until the substantive authorisation comes into effect.
Regulatory developments
On 16 October 2025, the NSW Environment Protection Authority (NSW EPA) released the proposed regulation under the Product Lifecycle Responsibility Act 2025 (NSW) (PLR Act) for public consultation. The draft regulation provides the legal framework for the proposed mandatory NSW product stewardship scheme for end-of-life batteries, where brand owners who supply batteries into NSW will be required to be a member of a product stewardship organisation that has an agreement with the NSW EPA. The draft regulation would also require product stewardship organisations that enter into an agreement with NSW EPA to comply with that agreement (potentially with penalties for non-compliance) and:
- prepare and publish an action plan detailing how they intend to meet requirements in the regulation and their agreement with the NSW EPA
- keep records and report quarterly/annually on a range of performance and financial measures.
The battery types in scope of the NSW draft regulation include standard size batteries used to power household items, button and button cell batteries, removable rechargeable batteries weighing 5kg or less, and portable power banks weighing 5kg or less. The draft regulation also captures e-micromobility devices where it is not practicable to remove a regulated battery from an e-micromobility device. NSW EPA's regulatory impact statement for the proposed draft regulation states that it has engaged extensively with other Australian states and territories to discuss opportunities to put in place similar legislative frameworks to achieve a nationally aligned approach and reduce the impact on the common market.
NSW EPA is seeking feedback on the proposed regulation by 14 November 2025 and expects the regulation to commence in mid-2026.
