List of recommendations

Recommendation1

8.15The committee recommends the Australian Government legislate a Circular Economy Act, in accordance with the recommendation of the Circular Economy Ministerial Advisory Group (CEMAG), to implement a full circular economy framework aimed at effectively supporting Australia's waste management and resource recovery sectors, and improving environmental and economic outcomes. A legislated Circular Economy Act should reflect the findings and recommendations of the CEMAG and Productivity Commission and set a clear framework for imported and local product design, financial incentives, and regulatory enforcement.

Recommendation2

8.20The committee recommends that in its final report for its inquiry into opportunities in the circular economy, the Productivity Commission examine the role of economic settings and financial incentives (including levies and subsidies) in driving circular economy outcomes. The Productivity Commission should further examine:

the market conditions for the import and export of packaged goods,plastics and other materials;

the financial levers and policy settings available to equalise conditions for importers and exporters; and

the current financial policy settings in foreign jurisdictions where circular economy principles have been successfully implemented.

Recommendation 3

8.29The committee recommends the Australian Government establish a cross-jurisdictional circular economy action taskforce to oversight harmonised waste prevention and recycling practices, and the shift to a circular economy across Australia. The taskforce should be empowered to improve national harmonisation in waste reduction and resource recovery, in line with circular economy principles and outcomes. The taskforce should provide an annual update on national harmonisation progress to the Australian Parliament, no later than 30 September each year.

8.30The circular economy action taskforce should consist of representatives from the Department of Climate Change, Energy, the Environment and Water; the Treasury; the Department of Industry, Science and Resources, and any other relevant Australian Government agencies. It should also include representatives from each state and territory and from the Australian Local Government Association. The taskforce should engage with the waste and resource recovery sector and relevant consumer groups on at least a quarterly basis, and provide advice to government as required on the financial support needed to implement the circular economy (for example, via a Circular EconomyFund).

Recommendation4

8.31The committee recommends that the Environment Ministers' Meeting works to coordinate the implementation of nationally harmonised definitions for waste reduction and resource recovery, and harmonised landfill levies, wherever possible.

Recommendation5

8.59The committee recommends the Australian Government amend the Recycling and Waste Reduction Act 2020 to implement ambitious producer-funded mandatory national product stewardship schemes, packaging design requirements and rules, with mechanisms to drive demand for recycled materials. Legislative reform should progress the national harmonisation of container deposit schemes. Mandatory product stewardship schemes should immediately be implemented for problematic waste streams including:

plastics and packaging, including soft plastics and taking into consideration packaging design;

batteries; and

photovoltaic systems.

8.60In developing national, mandatory product stewardship schemes, the committee recommends the Australian Government consider the Product Lifecycle Responsibility Act 2025 (NSW) and its suitability as a framework for national implementation. The Australian Government should publicly release its views on the national applicability of the NSW legislation, as part of its review of the Recycling and Waste Reduction Act 2020.

Recommendation 6

8.61The committee recommends the Australian Government amend the Recycling and Waste Reduction Act 2020 to mandate that packaging produced in Australia contain a minimum amount of recycled Australian materials.

Recommendation 7

8.62The Australian Government should offer financial incentives or other assistance to the waste and resources sector for the investment required in infrastructure and markets to support mandated product stewardshipschemes.

Recommendation 8

8.67The committee recommends the Australian Government amend the Recycling and Waste Reduction Act 2020 to provide a national legislative framework for extended producer responsibility schemes, to be funded by industry.

Recommendation 9

8.72The committee recommends the Australian Government continue to engage strongly on the United Nations (UN) Global Plastics Treaty to End Plastic Pollution, through the UN Intergovernmental Negotiating Committee, which aims to achieve an international, legally binding instrument to eliminate plastic pollution.

Recommendation 10

8.78The committee recommends the Australian Government, through the Environment Ministers' Meeting, play a lead role to coordinate agreement with the state and territory governments to fast track the national harmonisation of collection, recovery and processing of soft plastics. The Australian Government should continue to offer financial incentives or other assistance to the waste and resources sector for the investment required to collect and process soft plastics.

Recommendation 11

8.89The committee recommends the Australian Government, through the Environment Ministers' Meeting, play a lead role to achieve cooperation between state and territory governments to improve the consistency, quality and timeliness of waste, resource and recycling data. This data should be published on an annual basis, for the immediate year prior, and include key metrics from relevant Australian businesses.

Recommendation12

8.90The committee recommends the Australian Packaging Covenant Organisation be authorised to receive and publish annual data from Australia's major supermarkets and other major packaging producers and users, including their progress towards National Packaging Targets, the amount and categories of packaging being placed on the market, and the percentage of Australian recycled materials used in supermarket packaging.

Recommendation 13

8.95The committee recommends the Australian National Audit Office (ANAO), as part of its 2025-26 Audit Program, conduct an audit of the administration and operation of the Recycling Modernisation Fund. Pending the findings of the ANAO, the Australian Government should consider the merits of repurposing and broadening the Recycling Modernisation Fund to become a Circular Economy Fund.

Recommendation 14

8.102The committee recommends the Australian Government, through the Environment Ministers' Meeting, finalise the Design for Kerbside Recyclability Grading Framework at the completion of the current consultation process, and implement cross-jurisdictional harmonisation of kerbside collection for organics, recycling and landfill waste.

Recommendation 15

8.103The committee recommends the Australian Government, through the Environment Ministers' Meeting, provide regular updates on the progress of the National Kerbside Collections Roadmap.

Recommendation16

8.111The committee recommends the Department of Climate Change, Energy, the Environment and Water work with the waste and resource recovery sector on revisions to the now-repealed Recycling and Waste Reduction (Fees) Amendment (Export of Regulated Waste Material Fees and Other Measures) Rules 2024. The department should work with industry to amend the intent of the 2024 Rules to ensure cost recovery measures do not impede the export of valuable commodities, are environmentally effective, and are sustainable in the long-term for the waste and resource recovery sector.

Recommendation 17

8.116The committee recommends the Department of Climate Change, Energy, the Environment and Water, together with The Treasury and the Department of Industry, Science and Resources, develop regulations for the import of virgin and recycled material and packaging into Australia. Import regulations should take account of Australia's needs in processing various waste streams and consider:

minimum standards and requirements for materials entering Australia;

restricting the import of materials and goods which cannot be properly processed and/or recycled at their end-of-life;

the current and future capacity of Australia's waste recovery and materials processing infrastructure;

the role of mandatory product stewardship schemes in supporting import regulations; and

the role of financial incentives, including levies and subsidies.

Recommendation 18

8.121The committee recommends that as part of its review into the Recycling and Waste Reduction Act 2020, the Department of Climate Change, Energy, the Environment and Water take into consideration the evidence received, and recommendations made during this inquiry and the committee's 2018 inquiry.

Recommendation 19

8.125The committee recommends environment ministers, together with the Australian Local Government Association, develop an Environmentally Sustainable Procurement Policy to be applied to federal, state, territory and local government procurement processes.