$10M BOOST TO AUSTRALIAN RECYCLING CAPACITY A STRONG START — BUT MORE ACTION NEEDED IN 2026 

20 January 2026

The Waste Management and Resource Recovery Association of Australia (WMRR) has welcomed this week’s Recycling Modernisation Fund (RMF) announcements — delivering $10 million for recycling infrastructure in Western Australia and Victoria — but says sustained federal leadership is urgently needed to cut Australia’s dependence on virgin plastics.

The latest RMF round will provide up to $6 million for regional and remote local governments in Western Australia to improve plastic, tyre, paper and cardboard recycling, alongside $4 million for Victorian businesses, social enterprises, not-for-profits and local governments to expand domestic plastics recycling capacity.

 “Targeted investment through the RMF is a critical lever for strengthening Australia’s recycling system — improving access to services, diverting waste from landfill, and supporting the growth of a genuine circular economy,” said Gayle Sloan, CEO of WMRR.

“But infrastructure alone is not enough. If we are serious about making these investments work, products entering the Australian market must be designed for recyclability — and there must be guaranteed demand for the recycled materials these facilities produce.”

New data from Australia’s Plastics Fates and Flows Report shows the scale of the challenge. In 2023–24, Australia consumed four (4) million tonnes of plastic, an increase on the previous year, yet recovery rates remain stubbornly low. Just 14 per cent of plastics are recovered, while around 87 per cent still end up in landfill.

Australia’s plastics market is dominated by imported finished goods (62 per cent) and products made from virgin resin (31 per cent), with only 7 per cent made from recycled plastics. While domestic plastic recovery and reprocessing capacity sits at nearly 600,000 tonnes, with a further 624,000 tonnes planned over the next five (5) years, much of this capacity is currently underutilised.

“We cannot recycle our way out of the plastics problem without fundamentally changing the economics,” Ms Sloan said.  “Government leadership is essential to ensure recycled plastics can compete with cheaper virgin materials and to give investors confidence that domestic recycling capacity will be used.”

As the Federal Government prepares to review Australia’s packaging regulations, WMRR is calling for decisive action to phase down reliance on virgin plastics and implement the recommendations of The Circular Advantage provided to the Circular Economy Ministers’ Advisory Group.

Key priorities include: 

• Introducing enforceable recycled content targets across packaging; and

• Finalising a national mandatory extended producer responsibility (EPR) scheme for packaging, including design-for-recyclability requirements.

“Packaging reforms must deliver clear, consistent and enforceable rules,” Ms Sloan said. “All packaging producers supplying the Australian market must carry a legal responsibility to design circular products, including mandated recycled content.”

“International experience shows that strong EPR schemes drive better design, reduce plastic waste and create reliable feedstock for recycling,” she said. “That is exactly what Australia needs to ensure new recycling facilities are commercially viable, environmentally effective, and delivering on their promise.”