Australia Missed Its 2025 Packaging Targets. Now Comes the Hard Part
For years, Australia set itself ambitious voluntary goals to clean up packaging by 2025. That deadline has arrived, and the verdict is sobering: the country fell well short. The response now underway could reshape what every business is required to do with its packaging.
For businesses, understanding the shift from voluntary to mandatory is increasingly important.
The Targets and the Shortfall
The 2025 National Packaging Targets aimed for all packaging to be reusable, recyclable or compostable, with high plastics recycling rates and significant recycled content. The reality fell short across the board.
According to the packaging covenant’s own data, Australia remained short across key measures, including reusable or recyclable packaging, plastics recycling, recycled content, and the phase-out of problematic single-use materials.
The reasons were structural rather than mysterious: economics that made the easy option cheaper than the right one, inconsistent rules across jurisdictions, insufficient sorting and reprocessing capacity, and consumer confusion about how to dispose of things.
The collapse of the country’s main soft-plastics recovery scheme partway through the period made the plastics picture worse, leaving households without a clear route to recycle materials they had been told were recoverable.
From Voluntary to Mandatory

The big consequence of missing the targets is a shift in approach. The federal government is reforming packaging regulation, moving away from the older voluntary, co-regulatory model toward mandatory standards.
For businesses, that is the headline. Packaging choices that were a matter of goodwill may increasingly become a matter of compliance, with real obligations attached.
Getting ahead of that is simply prudent. Businesses that work with a supplier like Star Stuff Group to move toward recyclable, fibre-based and well-labelled packaging now are positioning themselves for rules that are tightening rather than relaxing.
What Businesses Should Do
The practical steps are not mysterious. Favour materials with genuine recovery pathways, reduce problematic plastics and composites, and make sure packaging is labelled accurately so customers can dispose of it correctly.
It also helps to think in terms of the whole lifecycle, not just the point of sale, since that is the lens regulation is increasingly applying through ideas like extended producer responsibility.
The transition will not be free, but neither is doing nothing, especially as mandatory standards approach and customer scrutiny grows.
Missing the 2025 targets was a disappointment, but it has clarified the direction. The era of voluntary best-efforts on packaging is closing, and the businesses that adapt early will find the coming rules far less disruptive than those who wait to be forced.

