Recycling Plastics Australia enters administration

Recycling Plastics Australia has entered voluntary administration, placing around 60 jobs and a significant share of South Australia’s plastics-processing capacity at risk as industry groups intensify calls for national packaging reform.

Tim Mableson and Edward Swifte of KPMG were appointed administrators of Recycling Plastics Australia and associated company Blackburn Inwood No.1 Pty Ltd on 31 August 2026. An urgent assessment of the company’s financial position and operations is now underway.

Existing recycling capacity faces uncertainty

Based in Kilburn, Adelaide, Recycling Plastics Australia processes mixed rigid plastics into granulated and pelletised feedstock that can be reused across manufacturing applications.

The company’s administration creates uncertainty around whether existing processing operations will continue and raises broader concerns about Australia’s ability to retain domestic capacity for recovering difficult plastic waste streams.

Major soft plastics project also at risk

The situation has also placed the future of a major advanced mechanical recycling project under question. The proposed facility was designed to process approximately 14,000 tonnes of soft plastics annually, including shopping bags, food wrappers and snack packaging.

The A$40 million project received a A$20 million commitment from the Australian Government through the Recycling Modernisation Fund Plastics Technology stream in 2024 and was expected to create 45 jobs.

Earlier government funding supported expansion

Recycling Plastics Australia had previously been allocated A$8.89 million through a 2021 recycling infrastructure funding round as part of another A$25 million project.

That investment was intended to improve sorting, grinding, washing and pelletising capabilities for mixed plastics at the Kilburn site, strengthening domestic production of recycled feedstock.

Industry warns of recycling viability crisis

The Australian Council of Recycling says the administration reflects wider financial pressure across the plastics recycling sector. Recyclers are competing with low-cost virgin polymers and imported recycled materials while facing high local operating and infrastructure costs.

Industry representatives argue that without stronger demand for domestically produced recyclates, recycling facilities can struggle to remain economically viable even when governments have contributed significant capital funding.

Packaging reform delay intensifies criticism

The administration coincided with confirmation that Australia’s Federal Government will not introduce a new Commonwealth packaging scheme during its current term.

The government instead plans to work with states and territories on shorter-term improvements to packaging regulation. Recycling organisations argue that continued delays risk weakening investment confidence and accelerating the loss of domestic processing capacity.

Extended producer responsibility returns to focus

Waste Management and Resource Recovery Association of Australia is calling for stronger extended producer responsibility, mandatory packaging design requirements and policies that increase demand for Australian recycled materials.

The organisation argues that producers should contribute more directly to the cost of recovering the packaging they place on the market, particularly when products are difficult or expensive to recycle.

Australia faces a broader circularity challenge

The RPA case highlights a structural challenge for Australia’s packaging circular economy. Investments in collection and recycling infrastructure can only remain viable if sufficient volumes of material are available and strong end markets exist for the recyclate produced.

With plastic waste exports restricted and domestic packaging consumption continuing, maintaining local recycling capacity is becoming increasingly important for supply-chain resilience and future recycled-content targets.

Administration could become a policy turning point

The first creditors’ meeting is scheduled for 10 September, while administrators continue to assess the company’s assets, operations and potential future options.

For Australia’s packaging sector, the outcome could become an important test of whether existing policy settings provide enough commercial support for domestic recycling infrastructure as the country attempts to move towards a more circular packaging system.