Australian State Government Funds Hard-To-Recycle Plastic Processing Project

The federal government and the New South Wales (NSW) government are jointly funding A$11.2 million to expand facilities for processing hard-to-recycle plastics, including soft plastics and rigid packaging materials.

These projects will enhance recycling capacity in New South Wales, reduce landfill waste, and strengthen the domestic plastic recycling supply chain.

The new government funding will be used to expand the infrastructure for handling hard-to-recycle plastics in New South Wales, with the goal of diverting tens of thousands of tons of waste from landfills annually, while also supporting local manufacturing and employment.

The Australian Federal Government and the New South Wales Government have jointly allocated 11.2 million Australian dollars to two regional projects, which are part of a broader national and state-level recycling initiative aimed at promoting a circular economy for plastics across the country.

Funded regional recycling projects​

The funds will be used to upgrade existing facilities and establish new recycling capabilities to process previously difficult-to-process plastics.

iQRenew, located in Kundle Kundle on the Mid-North Coast, has received A$9.1 million for factory upgrades, enabling it to sort and process up to 10,000 tonnes annually of soft plastics collected from households.

This expansion project is expected to produce recycled resin for use in a variety of products, from packaging components to construction materials such as fence posts, bricks, and furniture.

A new plastic recycling plant in Tamworth, supported by the Tamworth Regional Council and 11 neighboring local councils, will receive A$1.9 million. The facility is designed to process approximately 7,000 tonnes of hard-to-recycle plastic per year, such as crates and pallets, and turn it into material suitable for remanufacturing.

Both projects are expected to create ongoing operational and construction jobs for the local community.

Investment Background and Capacity Growth​

The A$11.2 million funding is shared equally between the New South Wales Government’s Waste Less Recycle More initiative and the Australian Government’s Recycling Modernisation Fund, the latter of which has invested over A$200 million nationwide in new and upgraded recycling infrastructure.

With additional investments from states, territories, and industries, the fund is expected to leverage a total of approximately AUD 1 billion in investment.

In addition to the plastic recycling projects in these two regions, 38 other projects in New South Wales have received a total of AUD 43.1 million in joint government funding. These projects are expected to increase the state’s annual recycling processing capacity by over 175,000 tonnes and encourage further infrastructure investment in the state.

Environmental pressure and policy-driven​

Plastic recycling capacity has long been a focus of Australia's waste policy, yet the recycling rate for hard-to-process plastics remains low compared to the total amount of waste generated.

Local media and environmental data indicate significant challenges with soft plastics and other packaging materials, with the overall plan aiming to reduce landfill pressure and increase recycling rates.

Experts point out that facilities capable of converting mixed plastics and soft plastics into high-quality raw materials are key to achieving circular economy goals and meeting long-term regulatory requirements.

The New South Wales government has emphasized that landfill capacity constraints are becoming increasingly severe, particularly in the Sydney area, and therefore enhancing recycling infrastructure is crucial for the future waste management strategy.

The planned ban and phased reduction measures for certain single-use plastic products highlight the overall policy environment promoting investment in recycling capacity.