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Australia National Packaging Targets and Packaging Covenant Framework

Australia National Packaging Targets and Packaging Covenant Framework: Australia’s National Packaging Targets and Packaging Covenant framework create compliance-style obligations

Maílis Carrilho
Written by Maílis Carrilho
Updated on February 26th, 2026

Summary

Australia’s National Packaging Targets set measurable outcomes for packaging recyclability, recycled content, plastic recycling rates and the phase-out of problematic single-use plastics, delivered through the Australian Packaging Covenant framework. While the Covenant is not a single federal statute in the same way as emissions schemes, it creates structured obligations for participating organisations and is linked to government oversight and packaging regulatory reform direction.

Details

Jurisdictions
  • Australia
Mandatory for

Covenant signatories and participants, and in practice, businesses that are compelled by customers, retailers or brand requirements to meet packaging standards.

Exemptions

Non-participants may avoid covenant reporting duties but remain exposed to:

Customer and retailer packaging specifications.

State-level single-use plastic bans and restrictions.

Future national reforms are signalled in official materials.

Deep dive

2 min read
Published Feb 26, 2026

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What’s Required

Government materials summarise the four National Packaging Targets, including 100% reusable, recyclable or compostable packaging, 70% plastic packaging recycled or composted, 50% average recycled content, and phasing out problematic and unnecessary single-use plastic packaging. For companies in packaging-intensive sectors, these targets translate into program obligations: redesign, material sourcing, labelling, and end-of-life solutions.

Under a covenant-based approach, obligations generally include:

  • Joining the covenant program and maintaining membership standing.

  • Submitting action plans or equivalent commitments.

  • Providing data and progress reporting on packaging composition, recyclability, recycled content, and problematic materials phase-out.

  • Implementing internal governance to coordinate procurement, product design, marketing, and logistics.

APCO materials explicitly acknowledge that the original 2025 targets are not expected to be fully met within that timeframe and indicate a revised target date will be established. This matters because governments often respond to underperformance with stronger regulation, making early compliance capability a strategic risk control.
APCO materials also flag that regulatory reforms are expected to enhance design for recyclability, labellin,g and recycled content, indicating future compliance tightening.

Important Deadlines

  • Original target year: 2025 targets remain a key reference point, even where revision is anticipated.

  • Revised date forthcoming: APCO indicates a revised target date will be established, creating a moving but predictable compliance horizon.

Current Status

The targets and covenant framework are active policy instruments, supported by government and APCO materials, and closely linked to ongoing packaging regulation reform discussions.

Penalties for Non-Compliance

Primary enforcement is market access and contractual: retailers and brand owners can delist products failing packaging specs. Public reporting and covenant transparency create reputational risk. As reforms tighten, direct regulatory penalties may expand.

Examples of Known Violations

Common packaging compliance breakdowns include:

  1. “Recyclable” labelling is not aligned with real-world collection and processing availability.

  2. Recycled content claims without supplier certificates and chain-of-custody evidence.

  3. Failure to phase out problematic materials due to late redesign and procurement lead times.

  4. Poor packaging of data systems is preventing credible reporting.

  5. Inconsistent specifications across SKUs and markets are leading to non-compliant stock.

Resources


Maílis Carrilho
Added by:
Maílis Carrilho
Sustainability Research Analyst
Maílis Carrilho is a Sustainability Research Analyst (Intern) at Net Zero Compare, contributing research and analysis on climate tech, carbon policies, and sustainable solutions. She supports the team in developing fact-based content and insights to help companies and readers navigate the evolving sustainability landscape.
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Added on Feb 26, 2026 by Maílis Carrilho ·