Australia’s Packaging Regulations – Everything You Need to Know

Packaging is an important part of a brand’s identity as it can communicate a brand’s story, personality and values. However, it is not just about the design of the packaging. Australia has strict packaging laws and regulations to make sure packaging is sustainable, prevents waste, reduces emissions and supports the economy. The 2025 national packaging targets are a collaboration between the industry and government to ensure sustainable packaging practices are utilised. In this article, we break down what the packaging guidelines are, what they mean for a brand and how to implement sustainable practices as part of your packaging strategy. 

What is Australia’s Packaging Problem?

The main problem that Australia and the world faces with packaging is the use of plastic packaging which is a significant generator in plastic pollution, ending up in landfill. Businesses also use more packaging than is necessary,  because of lack of design and forethought for the environment. Packaging issues are a universal problem, contributing to extreme waste and impact on the earth’s ecosystems. 

What is Sustainable Packaging? 

Sustainable packaging is any type of eco-friendly material that is used to wrap, present, ship and store a product. It is material that maintains its functional requirement while minimising its impact on the environment. It can take the form of recyclable,  reusable or biodegradable materials that limit any impact on the environment. The goals for packaging to be sustainable are set out by the Australian Packaging Covenant Organisation  (APCO) which aims to help companies design packaging that minimises environmental impact while maximising recyclability.  An example of a company that incorporates many of these criteria into an approach to packaging is Lush. 90% of their packaging is made from materials that can be recycled or composted. In fact, unlike many companies, Lush attempts to avoid the need for packing at all, with their shampoo, conditioner and bubble bath able to be purchased in bar form. 

Why is Sustainable Packaging Important?

Sustainable packaging is playing an increasingly important role as the world moves toward a circular economy with goals of zero waste and less environmental impact. The average Australian uses nearly 150kg of packaging a yearand while the use of recycled content in packaging is increasing, most packaging is still made from virgin materials and finite resources.If all the packaging that ended up in landfill in 2020–21 had been recycled, we could have cut national greenhouse gas emissions by around 2.2 million tonnes. That’s like taking 740,000 cars off the road every year.

What are the Australian Packaging Regulations?

The Australian Packaging Regulations are a proactive approach the country has taken to tackle the challenge of packaging waste. The regulations help make sure packaging waste is minimised and where packaging is used it is designed to be recovered, reused, recycled, or reprocessed.  Mandatory packaging design standards and targets are part of the regulations. 

APCO was established to oversee the regulations by working alongside governments and industries to reduce the environmental impact of packaging in Australia by:

• Designing packaging that is recyclable, compostable, or reusable
• Increasing the use of recycled materials in packaging
• Implementing on-site waste management systems
• Educating consumers on responsible packaging disposal

What are the National Packaging Targets? 

The National Packaging Targets are a key commitment from the Government and Australian industries towards a circular economy for all packaging made, used and sold in Australia. One aim of the targets is to ensure that 100% of packaging is reusable, recyclable or compostable while phasing out unnecessary plastic packaging.  APCO is responsible for overseeing the progress of these targets which were set for 2025. The targets were:

• 100% of packaging to be reusable, recyclable, or compostable
• 70% of plastic packaging to be recycled or composted by
• 50% average recycled content across all packaging types
• Phasing out problematic and unnecessary single-use plastic packaging 

These targets act as a guide for businesses to move towards more sustainable packaging solutions. While significant progress is being made, more effort is needed to ensure these goals are fully achieved.

Achieving this requires significant investment in new infrastructure. At the moment, the cost of collecting and recycling this packaging exceeds the value of the recycled materials. While there has been some progress in design, labelling, and recycled content, recent reports show that progress is still lacking, especially in recycling rates for plastics and cardboard. The changing landscape calls for a bold shift in strategy to meet both industry responsibilities and public expectations around recycling.

Targets requiring attention by industry include:

• Increasing the volume of plastic packaging being recycled.
• Increasing the amount of recycled content in plastic packaging.

The 2025 National Packaging Targets were not achieved by the deadline. APCO is developing a new strategy for 2030, which builds on a reset of the organisation, following the 2022 target review.  In ongoing efforts APCO continues to track the state of packaging in Australia and identify what needs to change and how to achieve National Packaging Target goals. 

Tracking progress on the National Packaging Targets

The progress of the National Packaging targets, monitored by APCO, showed that, while progress has been made, there were significant gaps in plastic packaging recovery. With the 2025 targets not completely fulfilled, APCO has set a new strategic plan to bridge the economic gaps and accelerate target achievability. The 2030 strategic plan includes:

• Increased recycling: To achieve recycling targets, the plan includes direct support for high-quality collection, recycling and packaging stewardship activities that, in addition to business-as-usual, will enable the achievement of recycling targets and the production of high-quality Australian recycled content.
• New membership fee model: APCO member fees will be calculated using eco-modulation (ecological modulation). This will be based on each member’s packaging profile and incentivises the design of packaging for reduction, reuse, and recovery. The aim is for these to be in place in the financial year 2026-27.
• New indicators: The goals of the Covenant will be tracked using new indicators in addition to the National Packaging Targets, including the reduction of materials sent to landfill. 
• Social license: The plan ensures that brand owners will have a supportive system that allows community expectations on packaging design and disposal to be met.

How to Implement Sustainable Packaging Practices 

Now you know the guidelines for packaging by the APCO, it is important to understand how you can implement these sustainable practices into your strategy.

Understand your current packaging

• Design for recovery: Assess whether your current packaging can be reused, recycled, or composted. For example, if you use plastic packaging, consider if it’s recyclable or could be replaced with an eco-friendlier material like plant-based or recycled materials.
• Design for material recycling: Identify whether your packaging materials can be recycled into high-quality new products. For instance, if your packaging is made from aluminium, it can be recycled into new aluminium products without losing quality.

Understand your product

• Design for organic recycling: Consider whether your product packaging, especially in food or organic products, can be composted. For example, if you sell food items, opt for compostable packaging made from plant-based materials that will break down naturally in composting systems (ideally using home composting).
• Design to reduce product waste: Evaluate your product and its packaging to ensure minimal waste. For example, if you’re packaging liquid products, design the packaging to ensure every last drop can be dispensed without waste, such as using a squeezable container for sauces.

Choose the best option with your product in mind

• Design for reuse: Choose packaging that can be reused multiple times before recycling. For instance, consider using glass jars or sturdy containers for products like sauces or jams, allowing customers to refill or repurpose them.
• Use renewable materials: Select renewable packaging materials such as sustainably sourced paper or bioplastics, which can be continually replenished, reducing reliance on non-renewable resources like certain plastics.

Avoid overpackaging through the supply chain

• Design for transport efficiency: Streamline your packaging design to optimise space and reduce material usage during transport. This could mean designing lighter packaging or packaging that maximises the use of space on shipping pallets, cutting down on unnecessary materials and energy.
• Eliminate hazardous materials: Avoid packaging materials that could pose risks, such as toxic chemicals or heavy metals. For example, opt for non-toxic inks and dyes for printed packaging.

Use manufacturers with sustainable practices

• Use recycled materials: Work with manufacturers who use recycled content in their packaging, such as recycled cardboard or plastic. This helps to close the loop in the circular economy, using less energy and reducing greenhouse gas emissions compared to virgin materials.
• Design for material recycling: Choose manufacturers who prioritise packaging that can be easily recycled or who support packaging take-back programs. For example, partnering with a company that uses packaging made from 100% recyclable materials.

Educate your customers on disposable and recycling practices

• Provide consumer information on environmental sustainability: Include clear instructions on how to recycle or dispose of the packaging responsibly. For example, a label could inform customers to “Please recycle” or indicate that the packaging is made from 50% post-consumer recycled material.
• Design for accessibility: Make it easy for customers to access this information on the packaging, ensuring that labels are clear, legible, and easy to understand. This could involve using larger fonts or bold colours for important disposal instructions.

This article has shown that while the laws and regulations around packaging in Australia are quite strict, the benefits they will have on the environment are fundamental. If you want more information on how to implement sustainable packaging practices with your brand, then the team at Brandwell can combine brand design and captivating touchpoints with sustainable objectives.