Australia
Have any regulations or guidelines already been implemented?
Although Australia is not subject to the EU’s Waste Framework Directive (WFD), Australia has its own legislation that enacts the concept of extended producer responsibility (EPR).
Under the Recycling and Waste Reduction Act 2020 (Cth) (RAWR Act) and its regulations, the Australian government is empowered to enact product stewardship requirements for products, including textiles. The RAWR Act was enacted in 2020 and replaces Australia’s former product stewardship legislation (Product Stewardship Act 2011 (Cth)).
Currently, 4 product stewardship schemes are in development of which, 2 schemes have been implemented, which related to products containing textiles, all being industry-led:
1. In November 2021, the Australian government announced a grant of $1M for the design of a National Clothing Product Stewardship Scheme (Clothing Scheme). Its design is being let by the Australian Fashion Council. This is yet to be implemented.
2. In 2020, the Commonwealth Government awarded the Australasian Circular Textiles Association (ACTA) a grant to design a uniform product stewardship scheme (named “Circular Threads”) by 2023. This is yet to be implemented.
3. In 2020, the Commonwealth Government supported Australian Sporting Goods Association (ASGA) in a grant to collect and recycle sports shoes (the “TreadLightly” initiative). This was implemented in October 2021 nationally.
4. The Australian Bedding Stewardship Council is developing a scheme for recycling mattresses which contain textiles. This scheme was granted authorisation by the Australian Competition and Consumer Commission (ACCC) on 26 October 2022. This has been implemented.
Is there any upcoming relevant legislation or guidelines?
What is the timeline for implementation?
Under the RAWR Act, the Department of Climate Change, Energy, the Environment and Water (Department) publishes the Minister’s Priority List (List), which is the driving force in creating new product stewardship schemes. Among other things, the List sets out key products the Minister proposes to focus on under the RAWR Act and recommended targets/actions. Clothing textiles was first listed on the Minister’s Priority List in 2021-22 and continues to be a priority for 2022/23.
What are the general rules?
Signing up to Seamless is presently voluntary but strongly encouraged. The recommended funding for the program will be a financial contribution made by the steward (business who either owns a brand or has an executive relationship with a brand) of 4c for every new piece of their clothing placed in the market. This funding will be directed towards four priority areas that have been identified by the AFC: 1) incentivising businesses to design more durable, repairable, sustainable and recyclable clothing; 2) growing the market for new business models based on reuse, repair, re-manufacturing and rental; 3) establishing sorting and collection systems for the effective re-use of wearable items and recycling of non-wearable items (including underwear and hosiery); and 4) encouraging changes in consumer behaviour by empowering them to make the right choices in the acquisition, use, care and disposal of clothing items.
The rules for participants in the Scheme are expected to be established over the coming months.
What are the products involved?
Of the product stewardship schemes that have been implemented for textiles, the products involved are:
- sport and active lifestyle footwear (TreadLightly);
- mattresses; and
- all new clothing imported into or manufactured in Australia including outer and underwear. It excludes single use protective wear, footwear, and accessories (Seamless).
We note that section 14 of the RAWR Act provides for the product stewardship criteria, which must be satisfied before any of the three categories of product stewardship under Chapter 3 can apply. The criteria requires that a product is sold in more than one State or Territory. It is also required that:
1. the product contains hazardous substances;
2. there is the potential to significantly increase the conservation of materials used in the product, or the recovery of resources (including materials and energy) from waste from the product; and/or
3. there is the potential to significantly reduce the impact that the product has on the environment, or that substances in the product have on the environment, or on the health or safety of humans.
The criteria have wide ambit to cover a broad range of textile products.
What are the enforcement measures and sanctions in case of violation?
Other than one mandatory scheme under the RAWR Act, the product stewardship schemes are voluntary. Of the product stewardship schemes that have been implemented for textiles, they will each have their own rules regarding enforcement and sanctions for violations.
There are however, a range of penalties for administrators of product stewardship schemes (as opposed to participants). A breach of a voluntary product stewardship or co-regulatory product stewardship provision may attract a penalty of 60 penalty units (currently AUD16,500) and a civil penalty of 250 penalty units (currently AUD68,750). There do not however appear to be any published enforcement actions to date.
As Seamless is presently being established, there are no reported enforcement measures or sanctions on the horizon. However, this may be more likely if the Minister deems that co-regulation or mandatory regulation is required after 30 June 2024.
Which are the responsible authorities or bodies?
Under the RAWR Act, the Department of Climate Change, Energy, the Environment and Water publishes the Minister’s Priority List and is responsible for the administration of product stewardship schemes.
The TreadLightly scheme is operated by ASGA and the Australian Bedding Stewardship Council is the responsible authority for the mattress recycling scheme.
As Seamless is in the transition period, its governance is still to be finalised. The Design Report however recommended that an independent Product Stewardship Organisiation (PSO) be formed that is responsible for the operation of Seamless, including administering membership, determining eligibility and responsibilities, reporting and financial management. The PSO will be governed by an independent industry board with input from an Advisory Group.
During the design phase of Seamless, the feedback from stakeholder consultations indicated an appetite to implement a co-regulatory scheme, which is in line with what is occurring internationally.
