In January 2026, the Productivity Commission found that Australia had made little progress in implementing a circular economy. It also encouraged the Australian government to release its proposed packaging reforms promptly. Fast forward several months and the situation has changed once again. According to industry news sources, the government has communicated that no new Commonwealth packaging scheme will be introduced during the current term. So what about the bulk bags, sacks and wraps that quietly keep Australia moving?

The Packaging That Isn’t Photographed

Think of a crowded loading dock in the early hours of the morning. Pallets wrapped in stretch film, bulk bags carrying a tonne of grain or fertiliser and woven sacks lined up in tall stacks. There are paper sacks transporting flour and cement. Such packaging items seldom feature in the discussion on waste, but supply chains rely on them.

It differs from the consumer packaging in some fundamental ways: it has to be able to withstand heavy loads, stacking, weather, and rough treatment, and potentially be used many times. There may be additional safety and storage concerns that do not exist in the case of a yoghurt tub.

Such packaging is sold by specialist companies like polesy.com.au, which serve industries ranging from agriculture to construction, from laundries to hospitality. The key takeaway is that the range of products is wider than suggested by most packaging headlines.

Where The Reform Stands At The Moment?

Australia’s environment ministers decided to initiate packaging regulation reform back in 2022. The following consultation held in 2024 put forward three reform options: stronger administration of the current industry-based system, national mandatory requirements, and an extended producer responsibility scheme.

Proposals for national mandatory regulations have been ongoing since then. But as recent news reports reveal, there has been a much more cautious stance from the federal government. No new Commonwealth packaging scheme will be introduced until the next federal elections. No decisions were made on how or if the new recyclability grading framework will be applied, and the current scheme continues to operate as usual.

The potential reforms conducted jointly with state and territory governments are still possible. This leaves the business with no definite timeline and no new requirements announced.

How any future regulations will deal with business-to-business and transport packaging is unknown as well. This issue needs the consideration of buyers as industrial packaging goes through the same hands as consumer packaging.

Designing For Recovery

“Recyclable by design” might sound like a mouthful, but really it’s a pretty simple idea: packaging made from just a few simple materials is a heck of a lot easier to sort out and recycle than something with all sorts of mixed-up materials.

Liners, coatings and multiple layers all add to the complexity. A bag with a plastic liner, some printed on the outside, might do a great job protecting what’s inside, but it’s also a nightmare to recycle. So designers have got to balance all sorts of things: does it need to be protective? Is it going to cost too much? And how does it affect recovery? And it’s debates around these trade-offs that tend to get stuck in the mud.

Natural fibres are another option altogether. We’ve been using them in produce packing and sandbags for years, but the thing is, it all depends on how they’re treated, what they’re made of and how they get disposed of. They’ve got good and bad points: natural fibres can break down nicely, but they’re not always the strongest, they can let in moisture, they can be pricey, and supply can be a problem. So they’re fine for some jobs, but not for others.

Reuse: The Other Half Of The Recovery Story

We tend to get all worked up about recycling, but the thing is, reuse is just as important; in fact, it can cut waste right at the beginning of the whole process. A container that can go back and forth multiple times before being retired uses less material every time.

Industrial packaging is in a good spot here; it’s often designed to last, and can be refilled, fixed up and used again and again. That means a bag that can do ten trips can save up to nine disposals, providing each trip replaces a bag that would’ve normally gone in the bin. And the bag has got to be safe and fit for use all the while.

Most of the public conversation stops at recycling rates, and forgets about the importance of durability. If you’re a business that’s moving goods all the time, then reuse might be the better bet.

Questions Buyers Can Ask Suppliers Now

Buyers don’t need to be waiting for the rules to be finalised before asking some sharper questions. Some good ones to ask include:

• What materials are used in your product, including all the liners, coatings and inks?
• What Australian standards apply, and what documents do you use to prove you’re meeting them?
• Can the packaging be used over and over again, fixed up, or recycled, and how does it work?
• How quickly could your supply chain adapt if some new national or state rules come in?

And don’t forget lead time; suppliers that are able to make changes quickly will be in a better position if the rules change in the future. For now, just getting clear information is the best way to prepare. The buyers who ask the questions early are going to be in the best position no matter what the next policy decision is.