Recycling is already part of daily life for many in the construction sector.

(image via Canva (Ai generated)

Recoverable materials from construction and demolition sites, including aggregates, steel and packaging, account for around half of the raw materials processed by Australia’s recycling industry—an industry that contributes nearly $19 billion annually to our economic and supports 95,000 jobs. Importantly this sector produces a range of sustainable materials that can be reintegrated into construction projects, closing the loop on resource efficiency, reducing carbon emissions, minimising landfill, and driving innovation in sustainable manufacturing and technology.

As the peak body for resource recovery, recycling and remanufacturing in Australia, the Australian Council of Recycling (ACOR) represents enterprise across the recycling value chain, including construction and demolition recovery, kerbside recycling, recovered metals, glass, plastics, paper, organics, tyres, textiles, oil, e-waste processing, and container deposit scheme operations.

With a federal election around the corner, there’s an urgent need for strong policies that boost productivity, bolster Australia’s sovereign capability in resource recovery and remanufacturing, and ensure the best return on joint industry-government investment in recycling infrastructure—helping the construction sector meet its sustainability goals. Here’s what we need from the Australian Government to make that happen:

1.       Strong markets for Australian recycled material

A functional recycling system relies on three key elements: collection, processing, and end markets for recycled materials. Without strong and dynamic markets, the entire system is at risk. One of the most pressing challenges for Australian recyclers is ensuring that domestically recycled materials have a viable market, particularly as cheaper imported alternatives often undercut locally sourced product.

Adding to the challenge is the fact that Australia is a net importer of finished goods, including construction materials like aluminium, wood products, ceramics, and electrical fixtures. These materials inevitably enter domestic waste streams at the end of their life, yet federal regulations require that certain materials—such as plastics, glass, tyres, and e-waste—must be processed locally. However, it remains cheaper to import virgin or even recycled materials than to buy locally sourced recycled product, undermining the viability of domestic recycling efforts.

The solution? Prioritising procurement of Australian recycled content, particularly in infrastructure projects. Victoria’s ecologiQ program is a good example of how government-led procurement can drive demand for locally recycled materials. A similar approach must be implemented at the national level to ensure that government investment actively supports our shared goal of a circular economy.

2.       National packaging reform

Construction sites generate significant volumes of packaging waste, such as plastic wrap, timber pallets and cardboard and polystyrene boxes. These often end up mixed in skip bins, complicating recycling efforts.

Australia’s current packaging recycling system is fragmented, with a patchwork of state-based schemes and regulations creating unnecessary complexity and costs.

Nationally led packaging reform is crucial. This must include design standards that embed recyclability at their core, and minimum thresholds for local recycled content in packaging materials. Additionally, a mandatory extended producer responsibility (EPR) scheme with eco-modulated fees is required to incentivise producers to improve packaging sustainability and support traceability of materials.

3.       Urgent action to address the hazard of batteries and consumer electronics

Construction industry professionals understand the importance of safe worksites. However, recycling workers face a growing danger: electronics and batteries. These combustible items caused more than 10,000 fire incidents across Australia’s waste and recycling sector in the last year alone, with one major facility incurring $60 million in rebuilding costs—largely borne by ratepayers. These fires also fan the flames of an insurance crisis for the sector, with premiums skyrocketing and adding to the cost of services to construction projects.

Construction sites must be vigilant to ensure that power tool batteries, vapes, and other electronic items are not improperly disposed of in skip bins. However, the ultimate responsibility lies with producers of batteries and electronics, who must be required through regulation to manage their products’ full lifecycle, including establishing incentive-driven, safe and accessible disposal options for batteries.

Public awareness is also critical. Many Australians remain unaware of the risks posed by batteries or which products contain them. The message must be clear: never put a battery or electronic item into a conventional bin or skip bin. These items must only ever be disposed of at specifically designated locations. Download the Recycle Mate app for information on local safe disposal options.

4.       Product stewardship that ensures genuine recycling

The Recycling and Waste Reduction Act 2020 has led to a proliferation of government-accredited product stewardship schemes, but many focus on marketing or collection, rather than actual recycling. Without clear targets and robust governance, these schemes risk failing to drive genuine recycling outcomes, including demand needed for domestically recycled materials.

A more strategic approach is needed. Stronger governance and clear metrics which measure the impact of product stewardship schemes are the way forward. Additionally, the introduction of a Trigger Framework, ensuring product stewardship schemes are created only where there is a clear market need, will improve efficiency, prevent duplication, and ensure stewardship schemes genuinely contribute to the circular economy.

5.       Nationally harmonised resource recovery rules to boost productivity

Australia’s recycling sector is hampered by a messy patchwork of state and territory regulations, creating unnecessary inefficiencies and undermining investment confidence. A nationally harmonised resource recovery framework would provide consistency, boost productivity, and unlock the full economic and job-creation potential of the sector.

To give the market confidence in recycling outcomes, there is also a need for an independently governed Australian Recyclers Accreditation Program. This program would establish clear benchmarks and instil greater confidence in recycling practices and the use of recycled materials across all industries, including construction.

Ultimately, these policy changes will translate into a more sustainable construction industry, maximising resource recovery and providing a robust, reliable supply of recycled materials, contributing to Australia’s circular economy and paving the way for a greener future.

To learn more, check out ACOR’s detailed Federal Election platform.

Suzanne Toumborou is Chief Executive Officer of Austraalian Council of Recycling

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