Victoria is taking a significant leap forward in its efforts to tackle the ongoing issue of plastic waste. With a substantial investment of $4 million from both government and industry stakeholders, the region is set to enhance its capacity to recycle hard-to-process plastics, particularly soft plastics, thereby preventing more waste from ending up in landfills.
This initiative encompasses four innovative projects aimed at bolstering the resilience and efficiency of Victoria's resource recovery sector, with an ambitious goal of increasing the annual recycling volume by 16,700 tonnes. Importantly, these initiatives are expected to create job opportunities within Victoria's circular economy.
The projects receiving financial support include:
- Pact Recycling in Cheltenham: This project, known as bagMUSTER, focuses on recovering and recycling bags commonly used for transporting seeds, fertilizers, pesticides, and stockfeed.
- APR in Dandenong: An upgrade to enhance soft plastic sorting capabilities will implement an advanced infrared sorting technology from Norway. This innovation aims to improve the recycling processes for end-of-life soft plastics.
- Australian Soft Plastics Recycling located in Pakenham: This facility will undergo enhancements that will facilitate better recycling of low-density polyethylene films, such as those used for pallet wraps, which are often collected from supermarket distribution centers. The upgrades will boost processing capacity and enhance the quality of the recycled outputs.
- RE4ORM situated in Barnawartha: This project involves updating the facility to recover low-density plastics, which can then be reused in the production of new recycled goods.
The total investment from the government amounts to $3.5 million, sourced equally from both the Victorian and Federal Governments through the Recycling Modernisation Fund (RMF). This fund serves as a crucial mechanism to support states and territories, providing a one-time boost to Australia’s capabilities in sorting, processing, and remanufacturing various waste materials, including glass, plastics, tires, paper, and cardboard.
Federal Minister for the Environment and Water, Murray Watt, emphasized that the infrastructure improvements in Victoria represent a critical advancement in how Australia addresses plastic waste management. He remarked, "Plastics present a complicated waste dilemma. By enhancing our recycling capabilities in Victoria, we are making significant strides in reclaiming materials that would otherwise be discarded in landfills. These initiatives exemplify the Recycling Modernisation Fund's impact—keeping plastics out of landfills and harnessing them for productive use."
The Federal Government is committing over $200 million towards the establishment and enhancement of recycling infrastructure through the RMF, contributing to a broader investment of approximately $1 billion in collaboration with states, territories, and industry partners.
Including these four newly funded projects, the RMF is facilitating a total of 27 projects in Victoria, with a shared funding of $79 million—$44.7 million from the Federal Government and $34.3 million from the Victorian Government. The anticipated outcome of these projects is the addition of 328,000 tonnes of recycling capacity annually and an investment of $226.5 million in the state's recycling infrastructure.
Steve Dimopoulos, the Victorian Minister for Environment, stated that these initiatives will enhance Victoria's capability to manage plastic waste effectively, ensuring that more materials are repurposed and kept within productive cycles.
Looking ahead, starting January 19, 2026, Round 6 of the Recycling Modernisation Fund will open up an additional $4 million in joint funding. This funding will be accessible to businesses, social enterprises, non-profit organizations, and local government entities, all aimed at further strengthening recycling capabilities and diverting waste from landfills into a sustainable circular economy. Interested parties must submit their applications by July 1, 2026, or until the funding has been fully allocated.
