Investing in Australia's waste and recycling infrastructure

Australia's waste and recycling industry will be transformed by the Recycling Modernisation Fund (RMF) which will generate over $800 million of recycling investment from Australian Government, state and territory governments and industry investments.

By mid-2024 when the full waste export ban comes into effect, Australia must recycle around 645,000 additional tonnes of waste plastic, paper, glass and tyres each year.

Our waste and recycling industry will need to capture more materials for recycling and to do so cost-effectively. Therefore, Australia must futureproof and resource its domestic waste and recycling sector to deliver the waste reduction and recycling outcomes that the community expects.

It is important that we take a national and strategic approach to finding these infrastructure solutions. For that reason, the Australian Government is working with states and territories and industry to deliver this.

The Australian Government will invest $190 million into the RMF, leveraging over $800 million of recycling infrastructure investment from states and territories and industry. This will drive a billion-dollar transformation of Australia’s waste and recycling capacity.

The RMF and other measures that support Australia’s National Waste Policy Action Plan, will create approximately 10,000 new jobs and divert over 10 million tonnes of waste from landfill.

The RMF will support investment in new infrastructure to sort, process and remanufacture materials such as mixed plastic, paper, tyres and glass.

To date, the Australian Government has co-funded various projects with states and territories, including targeted projects for a national solution for paper recycling. In addition, the Australian Government has put aside funding under RMF to improve access to recycling infrastructure in regional and remote locations across Australia.

Australian Government funding is contingent on co-funding from industry, states and territories.

The creation of the RMF recognises our waste as a valuable resource whose value should be kept in the Australian economy. It is part of Australia taking responsibility for its own waste.

In addition to RMF, funding opportunities are available through the Modern Manufacturing Imitative for recycling and clean energy projects that support supply chain integration or translate research and ideas into commercial outcomes.

• Media release: $1 billion waste and recycling plan to transform waste industry
• Factsheet: Comparison of Modern Manufacturing and Recycling Modernisation Programs

How the RMF works

Funding is provided to the states and territories through the National Partnership on Recycling Infrastructure.

The signed National Partnership on Recycling Infrastructure and state and territory schedules are published on the Council on Federal Financial Relations website.

The allocation of funding to specific projects is the responsibility of state and territory governments, who will assess their jurisdiction’s major gaps in local reprocessing capacity.

A national solution for paper recycling

In recognition that Australia’s existing domestic paper and cardboard processing capacity cannot absorb the additional volume of mixed paper from municipal collection that is currently being exported, the Australian Government set aside funding to support additional paper projects under the RMF.

Paper and cardboard recycling infrastructure projects are particularly challenging and have high costs. This funding will support Australia to meet the waste paper and cardboard export ban from 1 July 2024.

The Australian Government consulted all jurisdictions and sought submissions for paper recycling infrastructure projects. An independent assessment panel with advice from industry experts recommended projects to be funded under this process. The following paper projects have been announced:

• The Western Australia and Australian Governments are jointly contributing $30 million ($15 million each) to go towards tackling 100,000 tonnes of waste paper and cardboard at a new $86.6 million Suez and Recycling and Recovery/Auswaste pulp mill in Perth.
• The Victoria and Australian Governments are jointly contributing $24 million ($12 million each) to go towards a new $37 million drum pulper at its Coolaroo Paper Mill, increasing its capacity to process an additional 95,000 tonnes of waste paper per annum.
• The South Australia and Australian Governments are jointly contributing $7.92 million ($3.6 million each) to build a new $12 million fibre polishing plant adjacent to the Northern Adelaide Waste Management Authority that will process an additional 40,000 tonnes of paper and cardboard per annum.

Together these, and other paper and cardboard projects, will go towards addressing the 375,000 tonnes of waste paper currently exported.

Further information

• RMF project announcements
• Waste exports
• RMF Regional and Remote funding

State and territory contacts

For further information about how the RMF will be rolled out in your state, contact your state authority.