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.
Note
The ACCC is not an environmental regulator and does not regulate the creation or use of soft plastic packaging, nor does it create or manage recycling schemes.
The Australian Government, including the Department of Climate Change, Energy, the Environment and Water, is working to reform Australia's packaging regulations to minimise packaging waste and pollution and build a circular economy for packaging. This reform is separate to this scheme.
The ACCC's role as Australia's competition regulator includes assessing applications for competitors to work together, called 'authorisations'. Broadly, the ACCC may grant an exemption when it is satisfied that the public benefit from the conduct outweighs any public detriment.
Where ACCC authorisation is granted, it provides statutory protection from court action for certain conduct by competitors that might otherwise raise concerns under the Competition and Consumer Act.
SPSA sought an exemption as some of the activities planned through the scheme involve competitors working together, which can sometimes risk breaching Australia's competition laws.
The authorisation and exemption role is limited to the exemption from specific sections of the Act, and, in this instance, authorisation is granted only in respect of Division 1 of Part IV and sections 45 and 47 of the Act.
Background
From 2011 to 2022, a return-to-store soft plastics collection program called 'REDcycle' partnered with major supermarkets to provide collection points for consumers to return used soft plastic packaging to stores for collection and recycling.
REDcycle was funded by supermarkets and retail brands from several industries, including food and grocery, clothing and electronics, and at the time of its collapse, had approximately 192 participants in its program.
After the collapse of the REDcycle program in 2022, the ACCC authorised ALDI, Coles and Woolworths to work together as part of the Soft Plastics Taskforce to pilot instore collections and process the stockpile of soft plastics that was left. The Taskforce was designed as a temporary arrangement to precede the development of a broader industry-wide stewardship program. The Soft Plastics Taskforce is chaired by the Department of Climate Change, Energy, the Environment and Water.
The ACCC granted a further authorisation with conditions in February 2025 with respect to the Soft Plastics Taskforce and processing of the stockpile, which is due to expire on 31 July 2026.
On 11 August 2025, the ACCC released a draft determination proposing to grant authorisation, with conditions, for eight years. The ACCC also granted interim authorisation allowing SPSA to:
- set (but not collect) the levy;
- arrange for services to operate the scheme (e.g. issue a request for information to processors); and
- share operational information with Coles, Woolworths, ALDI, so SPSA can prepare to take over existing collections run by Soft Plastics Taskforce.
Under this authorisation, SPSA intends to take over and expand the pilot instore collection program being run by the Soft Plastics Taskforce, as well as providing kerbside collections and potential drop off facilities.
