Recycling reform report says gains outweigh household cost
Up to $330 million could be unlocked from Australia’s garbage each year under recycling reform, according to economic analysis commissioned by Soft Plastic Stewardship Australia.
The group’s report said nationally aligning kerbside recycling, packaging design, labelling and recycling standards could deliver $115 million to $277 million in net annual productivity gains and stimulate $1.6 billion to $2.6 billion in capital investment each year.
Economist Stephen Koukoulas, who did the economic analysis for the report, said the cost of inaction was not zero. “The surprising outcome of the analysis was that its recommendations would increase household costs by just 9 cents a week, compared to productivity gains of between 28 and 55 cents per household.”
Better recycling could cut landfill costs by $78 million to $146 million a year, while underutilisation of existing recycling infrastructure due to inconsistent volumes was costing Australia $30 million to $89 million annually.
Soft plastics and council rules
Soft plastics were identified in the report as Australia’s largest recycling market failure, with 94% landfilled. The analysis put the lost material value at an estimated $900 million, with another $154 million in landfill costs each year.
Soft Plastic Stewardship Australia said 35.5% of recyclable packaging is not currently recovered, and that inconsistent rules across Australia’s 537 councils reduce recycling yields and increase contamination. Its figures also said 32% of Australians do not trust recycling, 25% find it confusing, 83% want nationally consistent recycling rules, 94% would use a new soft plastics scheme, and 87% want a national solution prioritised.
The group said making businesses pay to manage waste from products including bedding, clothing, batteries and soft plastic would provide funding to expand collection and processing beyond existing niche programmes. Independent MPs Kate Chaney and Dr Sophie Scamps both urged the federal government to act before environment ministers meet on Friday.
