Reforming packaging regulation Australia: What it means for your business

Reforming packaging regulation Australia is no longer a future possibility — it’s underway. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) has set the goal that all packaging available in Australia is designed to be recovered, reused, recycled and reprocessed safely in line with circular economy principles. dcceew.gov.au+1
For a full-service provider like Carewell, which offers packaging, industrial & safety supplies, logistics and 3PL, this shift matters on many levels: compliance, cost, brand positioning, sourcing, operations.
Here’s a breakdown of what’s happening, why it matters, how to respond.

1. Why change is coming

• The current regulatory setup in Australia for packaging has been found not fit-for-purpose. A review of the co-regulatory arrangement under the National Environment Protection (Used Packaging Materials) Measure (NEPM) found that after 25 years the structure lacks clarity, strong performance metrics and enough enforcement. oneplanetnetwork.org+2dcceew.gov.au+2
• In 2022 the environment ministers agreed to reform packaging regulation to support the circu­lar-packaging economy. dcceew.gov.au
• The government launched a consultation in 2024, asking industry and the public how reform should work. consult.dcceew.gov.au+1
• According to the consultation summary: over 80 % of respondents supported Commonwealth regulation of packaging, and around 65 % favoured an Extended Producer Responsibility (EPR) scheme with mandatory requirements. dcceew.gov.au+1
  So: the direction is clear. Stronger requirements on packaging design, disposal, accountability and reporting are coming.

2. What the reform options are

DCCEEW has identified a few broad possible regulatory paths. Food Packaging Forum+1
Here are the main options:

Option 1: Strengthen the existing co-regulatory arrangement (i.e., improve current arrangement without full overhaul).
Option 2: Introduce mandatory national requirements for packaging circularity — bans on certain materials, minimum recycled content thresholds, mandatory design requirements.
Option 3: Extended Producer Responsibility (EPR) scheme — producers bear responsibility (and cost) for end-of-life packaging; mandatory requirements + fee structure tied to packaging placed on market.
Each option has trade-offs: speed vs cost vs complexity vs impact. The consultation showed industry leaning toward Option 3. dcceew.gov.au
Another key element: DCCEEW developed a “Design for Kerbside Recyclability Grading Framework” to assess how recyclable packaging is based on collection, sorting, re-processing and end markets. dcceew.gov.au

3. What this means for businesses in Australia

If you’re supplying packaging, logistics, safety/industrial solutions (as Carewell does), here are the meaningful implications:

a) Packaging design and materials matter more

Under reform, packaging won’t just be judged on cost and function — it will be judged on how it performs in the circular economy: reuse potential, recyclability, safe re-processing.
For example: packaging that mixes many different polymers, uses problematic additives, or is hard to recycle, may face bans or higher cost/risk. Food Packaging Forum+1
Design for kerbside recyclability means you’ll need to think about the entire value chain — not just getting goods packed and shipped, but ensuring end-of-life pathways exist.

b) Reporting, traceability and accountability will increase

If an EPR scheme is adopted (or national mandatory requirements come in), businesses may need to:

• Report volumes of packaging placed on market.
• Show recycled content used.
• Demonstrate packaging is recyclable/reused/recovered.
• Possibly pay fees for non-compliant packaging or “eco-modulated” fees linked to design choices. dcceew.gov.au+1
  These introduce operational overheads. But they also create space for differentiation.

c) Brand and market implications

The reform isn’t purely a compliance cost — there is upside. Businesses that position themselves early as “packaging future-ready”, circular-economy aligned, environmentally responsible, may win:

• Customers increasingly care about packaging sustainability.
• Regulators and markets will favour compliant, forward-looking businesses.
• Avoiding last-minute changes helps avoid cost shocks.
  For Carewell, emphasising your commitment to innovation and environment aligns nicely with this trend.

d) Risks if you delay

Ignoring or delaying shouldering this change may bring:

• Regulatory risk: when national standards change, non-compliant packaging may get banned or incur higher fees.
• Cost risk: retrofitting packaging, supply-chain changes, scramble for compliant materials tend to cost more than planned change.
• Losing competitive edge: others may embrace the “green packaging / circular packaging” story sooner and capture market share.
  The bright side? Being ahead gives choice, not just obligation.

4. What to do now: Practical steps

Here are proactive steps a business like Carewell (and your clients) can take to stay ahead of reforming packaging regulation Australia.

1. Audit your packaging portfolio
   • Map all the packaging formats you supply/use: trays, mailers, poly-bags, wraps, tapes, safety-vest packaging etc.
   • For each: what material(s) does it use? What is end-of-life pathway? Is it currently recycled effectively?
   • Identify formats that are high-risk under expected reforms (mixed polymers, non-recyclable additives, hard-to-sort materials).
     This gives you a baseline.
2. Engage suppliers and design partners early
   • Ask your material manufacturers: what recycled content do they have? What about recyclability of the design?
   • Consider redesigning packaging with fewer material combinations, easier recycling/disassembly, clearer labelling.
   • For your logistics/3PL services, think about how returns, reuse of packaging or take-back schemes could integrate.
3. Monitor regulatory updates closely
   • Follow DCCEEW’s reform progress: they published the consultation summary in March 2025 showing responses from industry and public. dcceew.gov.au
   • Keep track of state/territory rules, as harmonisation is part of the reform but local differences may persist.
   • Join industry bodies (such as Australian Packaging Covenant Organisation – APCO) and use their resources. apco.org.au
4. Embed circular-economy thinking in operations
   • For your logistics/3PL side: look for opportunities to reuse packaging materials, integrate returned packaging, reduce waste in transit/storage.
   • For your packaging supply side: communicate to clients how more sustainable packaging helps them meet forthcoming regulation and branding goals.
5. Set internal KPIs & prepare data systems
   • Start tracking: volumes by material type, recycled content percentage, recycling/recovery rates for packaging supplied.
   • Prepare systems for traceability of materials and reporting obligations — the earlier you build data, the smoother adaptation will be.

5. Why this is a strategic opportunity

Yes, there is regulatory pressure — but there’s also strategic advantage. Investing ahead builds resilience and reputation. Some key reasons:

• The shift to circular economy is a major global trend. Australia’s reforms are part of that broader movement. For your packaging and logistics business, aligning now positions you for long-term advantage.
• Customers increasingly demand sustainable solutions. If you can offer packaging solutions that are “future-proof” (recyclable, lower environmental impact, compliant), that becomes a selling point.
• Efficiency gains often follow redesign: fewer materials, easier logistics/recovery, smarter packaging can yield cost savings — in the long run.
• Risk management: by doing the work now, you reduce exposure to surprise regulatory costs or supply-chain disruption when new rules land.

6. Tailoring to Carewell Group’s message

Given Carewell Group’s focus (packaging + industrial & safety + logistics + 3PL) and your mission of excellence, innovation and preserving the environment, you could frame your response like this:

At Carewell Group Pty Ltd, we recognise that reform of packaging regulation Australia is shaping the future of our industry. We are proactively auditing our supply-chain, materials and design practices so that our clients stay ahead. Whether it’s trays, mailers, poly-bags, wraps or tapes—we’re focusing on packaging that’s not just fit for purpose now, but fit for tomorrow’s circular economy.
As your one-stop solution for packaging, industrial & safety, logistics and 3PL, we commit to protecting your products, your brand and the environment.

You might also position a service offering: e.g., “Packaging Compliance Review” where you help clients assess their current packaging, map risk under upcoming regulation, and develop a roadmap. That gives you extra value-add.