Supermarket heavyweights back new plan to tackle Australia’s soft plastic problem

A fresh push to get soft plastics out of landfill and into recycling bins has taken a big step forward, with the Australian Competition and Consumer Commission (ACCC) giving the green light, at least in draft form, for a new industry-led scheme.

The consumer watchdog has proposed to authorise Soft Plastics Stewardship Australia (SPSA) to roll out a voluntary program to collect and recycle soft plastics like shopping bags, bread bags and food wrappers from retailers across Australia.

The scheme, backed by big-name members Woolworths, Coles, Aldi, Nestlé, Mars and McCormick Foods, is designed to pick up where the failed REDcycle program left off, and to go even further by expanding in-store drop-off points and kerbside collection pilots.

A reset for soft plastic recycling

“It’s clear that many Australians are concerned about the environmental impacts of soft plastic packaging and want to recycle it,” said ACCC Deputy Chair Mick Keogh.

Keogh said while the collapse of REDcycle left stockpiles sitting in warehouses and plenty of consumers frustrated, the new SPSA model is an “important stepping stone” towards broader and more reliable recycling.

The ACCC has already allowed supermarkets to work together through the Soft Plastics Taskforce to deal with the REDcycle backlog and run pilot collections until mid-2026. If all goes to plan, SPSA would take over those efforts, and build on them.

“We believe the proposed scheme will result in an environmental benefit… meaning some soft plastics are likely to be diverted from landfill,” Keogh said.

Ensuring transparency

Under the draft determination, the ACCC plans to grant authorisation for eight years, with strict conditions to keep the process competitive and transparent. SPSA won’t be allowed to lock in exclusive deals with recycling processors, and regular reporting will be required so the public can see how the scheme is performing.

In the meantime, the ACCC has granted interim authorisation so SPSA can start sharing operational data and transition arrangements from the Taskforce straight away.

Have your say

The proposal isn’t final yet. The ACCC is taking submissions on its draft determination until 25 August 2025.

If it goes ahead, SPSA’s program could finally give Australians a stable, long-term way to recycle soft plastics and make a real dent in the nation’s waste problem.

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