The Future of Packaging in Australia: APCO’s New Direction

The Australian Packaging Covenant Organisation (APCO) has released its FY26–27 Business Plan and Statement of Intent, setting the stage for one of the most significant shifts in Australia’s packaging landscape in the past decade. The plan outlines a clear pathway toward a nationally aligned, data-driven and regulated Extended Producer Responsibility (EPR) framework — expected to take full effect by FY28. For businesses, this marks the beginning of a future where packaging design, recyclability and data accuracy become essential compliance requirements.

APCO’s new direction reflects strong member feedback calling for clearer national rules, consistent standards across states, and recognition for organisations that invest early in sustainable packaging. As Australia prepares for a more structured system, APCO’s 36-month program focuses on five core areas designed to build capability and confidence across the industry.

1. Strengthening Packaging Standards and Design

Revised Sustainable Packaging Guidelines will offer clearer, more practical design direction. Technical working groups are already contributing insights on compostability, PFAS and emerging chemicals. New case studies will help businesses understand best-practice material choices across packaging formats.

2. Enhancing the Australasian Recycling Label (ARL)

The ARL program is undergoing a comprehensive review to ensure it aligns with future regulatory requirements. Research continues to show strong consumer trust in the ARL, and APCO is exploring expanded use in workplaces, public venues and other away-from-home disposal environments.

3. Improving Reporting and Data Systems

With global momentum towards verified and transparent packaging data, APCO will introduce clearer definitions, simplified reporting tools and improved user support. National consumption and recovery figures highlight ongoing challenges around plastics and will help refine future design and stewardship expectations.

4. Advancing EPR and Soft-Plastic Stewardship

APCO’s collaboration with Soft Plastic Stewardship Australia is developing governance frameworks and operational pilots — including polypropylene recovery trials — that will support the transition to a regulated EPR system.

5. Building Government Alignment

A key priority is strengthening engagement with federal and state governments to ensure new regulations support industry leadership. National alignment is expected to reduce fragmentation, lower compliance complexity and improve investment certainty for businesses.

Looking Ahead to FY28

APCO’s plan signals a future where packaging choices are no longer just design decisions — they are strategic compliance decisions. By FY28, businesses will be expected to provide accurate packaging data, demonstrate improved recyclability outcomes and operate within a strengthened ARL and stewardship environment.

For brand owners and suppliers, early preparation will be critical. Organisations that invest in recyclable, mono-material structures and transparent reporting systems now will be best positioned for the next era of packaging regulation in Australia.

APCO’s new direction is more than a policy update — it is a roadmap that will define the future of sustainable packaging across the country.