Looking Ahead: Australia & New Zealand Consider Tax on Virgin Plastic Products
22/09/2025
In Australia and New Zealand, a ‘plastic tax’ is under consideration which would see businesses having to pay a levy to produce or import products which contain virgin plastic. The purpose of the plastic tax is to provide an incentive for businesses to utilise more recycled plastic content in the production of plastic products.
The Current State
In Australia and New Zealand, a ‘plastic tax’ is under consideration which would see businesses having to pay a levy to produce or import products which contain virgin plastic. The purpose of the plastic tax is to provide an incentive for businesses to utilise more recycled plastic content in the production of plastic products.
Regarding the tax under consideration in Australia, a University of Melbourne article states:
“Introducing a tax would add an additional cost to making virgin (new) plastic, to deter manufacturers from producing and selling as much non-recyclable and non-reusable products as possible”. Source
As a trusted advisor to many of New Zealand’s largest businesses, we are ensuring our customers are aware that such policies are under consideration in Australia and New Zealand due to their potential impacts on businesses.
Here is an overview of the key facts:
|
| Australia | New Zealand |
| What is the scheme called? | Extended Producer Responsibility (EPR) approach | Plastic Packaging Product Stewardship Scheme (PPPS) |
| What is the intention of the scheme? | To reduce the usage of virgin plastic materials in the production of plastic products | To reduce the usage of virgin plastic materials in the production of plastic products |
| What is the timeframe for implementation? | To be confirmed – it’s currently under consideration | To be confirmed – it’s currently under consideration |
| Where can I learn more about the scheme? |
Potential Impact on New Zealand Businesses
If such a programme was to be implemented in New Zealand, it may have the following impacts on businesses:
- Reliance on internationally recognised certifications to reliably confirm the percentage of recycled content in a product
- If a supplier is facing taxes on the plastic products they import or produce, these costs may need to be passed onto the customer, resulting in price increases
- Increasing pressure on New Zealand’s recycling system if more complex packaging is imported which is not suited to local facilities
- A stronger focus on clear environmental labelling which supports the achievement of ESG commitments
- Challenges around supply chain monitoring from raw material to finished product including traceability and contamination control which becomes more complex with the introduction of recycled materials. Learn more
How New Zealand Businesses Can Prepare
Due to the potential impacts such a scheme could have on New Zealand businesses, it’s essential to take steps to prepare now:
- Review your plastic packaging and query the percentage of recycled content used at present
- Refer to the APCO (Australia) and Plastic Packaging Product Stewardship (New Zealand) websites for the latest updates
- Speak with a Snell Flexible Packaging expert for guidance on this complex topic.
Disclaimer: The material on this webpage is provided for general information purposes only. Snell endeavours to ensure that the information in this document is reliable and accurate at the time of publishing.