Victoria's plastic recycling capacity gets a major boost with a $4 million investment from the government and industry. This initiative aims to divert more hard-to-recycle plastics, including soft plastics, from landfills and transform them into new products. The focus is on increasing recycling capacity and resilience in Victoria's resource recovery sector, which will result in a 16,700-tonne annual increase in plastic recycling. This not only benefits the environment by reducing landfill waste but also creates job opportunities in the circular economy.
Four key projects are receiving funding to achieve this:
Pact Recycling (Cheltenham): The bagMUSTER project will tackle the recycling of bags used for transporting seeds, fertilizers, pesticides, and stockfeed, addressing a specific waste stream.
APR (Dandenong): An upgrade in sorting capacity using an infrared process from Norway will enhance the recycling of soft plastics, including end-of-life materials.
Australian Soft Plastics Recycling (Pakenham): By increasing processing capacity and improving the quality of recycled low-density polyethylene films, such as pallet wrap from supermarket warehouses, this project will enhance the recycling process.
RE4ORM (Barnawartha): This facility upgrade will focus on recovering low-density plastics for reuse in manufacturing new recycled products.
The government's $3.5 million investment, split equally between the Victorian and Federal Governments through the Recycling Modernisation Fund (RMF), is a significant step towards modernizing Australia's recycling infrastructure. The RMF is a national initiative supporting states and territories in boosting their capacity to sort, process, and remanufacture waste glass, plastic, tires, paper, and cardboard.
Federal Minister for the Environment and Water, Murray Watt, emphasizes the importance of this investment in transforming Australia's plastic waste management. By building recycling capability in Victoria, the country is making substantial progress in recovering materials that would otherwise end up in landfills. This aligns with the Recycling Modernisation Fund's goal of keeping plastic out of landfills and promoting productive use.
The Federal Government's commitment to the RMF is substantial, investing over $200 million in new and upgraded recycling infrastructure, contributing to a total investment of $1 billion with states, territories, and industry. In Victoria alone, the RMF is supporting 27 projects with $79 million in joint funding, including $44.7 million from the Federal Government and $34.3 million from the Victorian Government.
These projects are expected to significantly boost recycling capacity, adding 328,000 tonnes of recycling capacity annually and attracting $226.5 million in recycling infrastructure investments in the state. Victorian Minister for Environment, Steve Dimopoulos, highlights the projects' role in strengthening Victoria's plastic waste management capabilities, ensuring more materials are recovered, reused, and kept in productive circulation.
Looking ahead, Round 6 of the Recycling Modernisation Fund will provide an additional $4 million in joint funding from 19 January 2026, targeting businesses, social enterprises, not-for-profit organizations, and local government organizations. Applications will be accepted until 1 July 2026 or until funding is fully allocated.
The urgency of the situation is underscored by the need for government action to protect Australia's plastic packaging recycling future, as highlighted in a related article. Additionally, the opening of a soft plastics recycling facility by APR Plastics in Victoria is a significant development in the industry.
