For Australian businesses, this raises practical questions: Is our packaging even covered? Who in the supply chain carries the obligation? Do we have accurate material and weight data? Can our suppliers back up their claims? And can we say "recyclable" without risking a misleading-claims complaint?
This article explains how packaging Extended Producer Responsibility (EPR) actually works, how Australia's co-regulatory model differs from the US state-by-state approach you'll see referenced in most online guides, and what steps to take now. We'll separate confirmed Australian obligations from proposed reforms and international context, so you're working from what applies today rather than what might apply later.
Key Takeaways
- EPR links packaging design choices to end-of-life costs, data reporting, and environmental outcomes.
- Australian obligations vary by product, packaging type, business role, and current scheme rules — always verify against official sources.
- Start with a packaging inventory, clear role allocation, and reliable weight and material data.
- The US "seven EPR states" model is international context, not the Australian regulatory position.
What Is EPR Packaging and How Does It Work?
Extended Producer Responsibility shifts some of the cost and accountability for a product's post-consumer impact onto the producer, rather than leaving it entirely with local councils or waste operators.
The OECD's 2024 framework describes this responsibility as potentially financial, operational, or both. It is meant to encourage better design decisions upstream, not just fund cleanup downstream.
The policy goals are consistent across most EPR models globally:
- Reduce packaging at the source
- Increase reuse and recyclability
- Lift recycled content in new packaging
- Improve collection and sorting systems
- Allocate waste-management costs more transparently
Mapping the Packaging Lifecycle
Businesses assessing exposure need to trace packaging through its full journey:
- Design and procurement
- Manufacturing and importation
- Sale or distribution
- Consumer use
- Collection, sorting, recycling or recovery, and disposal
Responsibility can split across this chain in four distinct ways:
- Legal responsibility — who is named as liable under the relevant framework
- Financial responsibility — who pays scheme fees, levies, or contributions
- Operational responsibility — who manages collection or recovery activity
- Reporting responsibility — who submits data and evidence
One organisation rarely handles all four. A retailer might carry legal responsibility for its house-brand packaging while a logistics partner handles collection.
Key terms worth knowing:
- Producer / brand owner — the entity whose trademark appears on the product
- Importer — the first Australian seller of an imported item
- Stewardship scheme or PRO — the producer responsibility organisation that meets obligations collectively
- Eco-modulation — fee adjustments based on how recyclable or reusable the packaging is
- End-of-life management — everything from kerbside collection to industrial recovery
Packaging composition alone won't tell you who's liable. Liability also depends on who places the product on the Australian market, who controls the packaging specification, and whether a product-specific scheme applies.
This is where the comparison with the US matters. American frameworks are largely state-based, with each state legislating its own PRO and fee structure. Australia instead runs a national co-regulatory model layered with state and territory options — a different structure that we'll unpack next.
What Is the Australian Packaging EPR Landscape?
Australia's current packaging framework is mandatory, but co-regulatory. According to the Department of Climate Change, Energy, the Environment and Water (DCCEEW), businesses meeting the applicable threshold must follow one of three compliance routes:
- Join the Australian Packaging Covenant (administered by APCO)
- Report directly to their state or territory regulator under the National Environment Protection (Used Packaging Materials) Measure
- Join an approved equivalent program
That threshold, per DCCEEW guidance, applies to businesses with $5 million or more in relevant Australian turnover. Joining APCO's Covenant is a choice between pathways, but compliance itself isn't optional once you're in scope.
Reform Is Still in Progress, Not Yet Law
Environment ministers agreed to review packaging regulation back in 2022, and a 2024 consultation floated mandatory national EPR as an option, drawing 65% support in submissions. A packaging EPR bill was referred to a Senate committee in May 2026.
DCCEEW's own update from September 2026 confirms existing arrangements remain in place. Treat proposed reform as a signal to prepare, not as a current obligation.
Current national packaging targets (against 2023-24 reported outcomes) look like this:
| Target | 2023-24 Result |
|---|---|
| 100% reusable, recyclable, or compostable packaging | 86% |
| 70% of plastic packaging recycled or composted | 20% |
| 50% average recycled content | 44% |
| Phase out unnecessary single-use plastic | 46% reduction from 2017-18 baseline |
These are collective, sector-wide targets, not per-business quotas.
Who's Expected to Participate
- Domestic manufacturers supplying branded packaging directly
- Importers who are first sellers of packaged imports into Australia
- Brand owners and franchisees holding Australian trademark rights
- Retailers using in-store packaging, including their own shopping bags
- E-commerce sellers, regardless of whether sales happen online
- Overseas companies selling into Australia (APCO offers International Affiliate membership, though this doesn't remove an Australian importer's own obligations)
State-level rules can add further detail. Victoria's EPA guidance sets extra requirements for non-Covenant businesses on the jurisdictional route:
- Hit 70% annual recovery by material category
- Report by 30 September each year
- Retain records for five years
For international comparison only: the US now has seven states with packaging EPR laws: California, Colorado, Maine, Maryland, Minnesota, Oregon, and Washington. These carry their own dates, PRO structures, and fees that have no bearing on Australian obligations unless you also sell into those states.
Information in this section reflects official Australian government and APCO guidance current as at early-to-mid 2026. Regulatory positions can shift. Always confirm against the source links provided.
Who Is Responsible and How Are Costs Calculated?
Working out who's on the hook starts with mapping your supply chain: brand owner, manufacturer, importer, distributor, retailer, marketplace, fulfilment provider, and packaging supplier. Each plays a different role, and liability often lands with whoever controls the packaging decision or first places the product on the Australian market.
Common Scenarios
- Australian business importing branded products — likely the "first Australian seller," carrying brand-owner obligations even without manufacturing anything itself
- Overseas brand selling direct to Australian consumers — obligations depend on Australian entity structure and sales volume, not just where goods are made
- Retailer using its own shopping bags — the retailer is typically the brand owner for that packaging component
- E-commerce business using third-party fulfilment — outsourcing logistics doesn't automatically transfer legal responsibility
Contracts can allocate data ownership, packaging specifications, reporting tasks, and cost recovery between parties. A contract can't remove a statutory obligation. If you're named as liable under the framework, a supplier agreement doesn't change that.
Data You'll Need
To estimate exposure accurately, collect:
- Product or SKU identifier
- Packaging component and material type
- Weight per unit and per component
- Recycled content percentage
- Recyclability or recovery attributes
- Units placed on the Australian market
- Sales or distribution location
The general cost model multiplies covered packaging quantity by the applicable scheme, stewardship, or compliance rate, then adjusts for material performance. The hard part is finding a single Australian figure to plug into that formula.
APCO's Membership Fee Schedule, updated in February 2026, bases brand-owner dues on annual Australian turnover rather than a flat per-kilogram rate. There's no single confirmed national 2026 EPR rate for Australia, so check your specific membership tier rather than assume a US-style figure applies.
Where data is genuinely uncertain, use supplier declarations, bills of materials, packaging specifications, calibrated weighing, and sales records. Documented estimation methods hold up under audit. Guesswork doesn't.
How Businesses Should Prepare for Packaging EPR
Preparation starts with visibility, not compliance paperwork.
Build a Complete Packaging Inventory
Cover every packaging type your product touches:
- Primary, secondary, and tertiary packaging
- Transport materials and e-commerce mailers
- Inserts, labels, closures, coatings, and adhesives
- Protective materials
Note which items stay with the consumer and which are used only in logistics. That distinction affects how they're classified.
Create a Central Data Register
Your register should include:
- Consistent naming conventions across products and business units
- Material classification and unit/component weights
- Recycled-content information with supplier evidence attached
- Market and sales-channel data
Assign Clear Ownership
Packaging data touches more departments than most businesses expect: procurement, product design, supply chain, finance, legal, sustainability, sales, and IT. Decide who approves data entries and who monitors regulatory changes. Without a named owner, the work falls through the cracks.
Review Design for Recovery
Look at material reduction, right-sizing, reuse potential, mono-material options, and compatibility with Australian sorting infrastructure. A packaging redesign that works in one market may not be recyclable through Australian kerbside systems.
Build a Compliance Calendar
Track registration renewals, data submissions, supplier confirmations, payment deadlines, and internal audits. Populate dates only from current official sources. APCO's membership year runs 1 July to 30 June, which is a useful anchor point.
For multinational companies, coordinating packaging data with existing accounting and reporting workflows reduces duplicated effort. VJM Global supports Australian businesses and multinational operators with compliance documentation, back-office reporting, and accounting coordination across markets when packaging data must feed broader financial and regulatory reporting. That support does not replace registration with APCO or a recognised stewardship scheme.
Business Implications, Risks, and Common Mistakes
Packaging obligations touch more than compliance budgets. They influence procurement contracts, product design timelines, and even pricing strategy once contribution costs are factored in.
The upside: better packaging data doesn't just satisfy regulators. It improves cost visibility, sharpens procurement decisions, and strengthens sustainability disclosures to customers and investors alike.
Mistakes That Cost Businesses Later
- Assuming the packaging supplier automatically carries the liability
- Treating "recyclable" as a universal, unqualified claim
- Relying on packaging invoices instead of actual component weights
- Mixing up Australian rules with US state requirements
- Ignoring imported packaging because "it wasn't made here"
- Failing to retain supplier evidence and specifications
Greenwashing Creates Legal Risk
The ACCC's guidance on environmental claims is specific: a recycling symbol or unqualified "recyclable" claim can mislead consumers if ordinary kerbside collection doesn't actually accept the item.
In April 2025, the Federal Court ordered Clorox Australia to pay $8.25 million over "50% Ocean Plastic Recycled" claims on GLAD bags, after the material was found to originate from coastal communities rather than the ocean itself.
Claims need to be specific, substantiated, and match what's actually achievable through mainstream Australian collection systems.
A Practical Action Sequence
- Confirm whether your business is in scope
- Identify the responsible entity across your supply chain
- Inventory all packaging components
- Collect supplier evidence and specifications
- Calculate estimated exposure
- Check current scheme or legal requirements
- Improve packaging design where practical
- Submit required data on schedule
- Retain records for audit readiness
Build in a periodic review — new product launches, supplier substitutions, and sales-channel changes can all shift your obligations without warning.
Frequently Asked Questions
What is EPR for packaging?
EPR shifts some responsibility for packaging's end-of-life impact onto producers, brand owners, or importers rather than leaving it solely with waste services. Australian application depends on the current legal framework, scheme membership, and product category. Always confirm specifics before assuming coverage.
Who pays EPR fees?
The responsible payer depends on business role and the applicable Australian requirement: brand owner, importer, retailer, or scheme member. There isn't one national fee that every Australian business pays automatically.
How is EPR calculated?
Calculations generally factor packaging material, weight, quantity placed on the Australian market, business role, and specific scheme rules. Some models add adjustments based on recyclability or recycled content.
What are the EPR rates for 2026?
There's no single confirmed nationwide Australian rate for 2026. APCO's membership fees are turnover-based, not a flat per-kilogram figure. Don't confuse US state fee schedules with Australian costs.
Who is exempt from EPR?
Exemptions can depend on business size, packaging type, product category, and scheme membership. DCCEEW references a $5 million turnover threshold as one factor. Verify your specific situation rather than assuming exemption applies.
What are the EPR guidelines for plastic packaging?
Guidelines typically cover accurate plastic identification, component-level weight data, recycled content evidence, and design choices that support actual recovery. Always check current APCO and DCCEEW guidance before making recyclability claims.
