Wine and spirit bottles to join deposit schemes in NSW and South Australia by 2027

2025-09-04

Expanded recycling rules aim to keep half a billion containers from landfill each year as industry voices concerns over costs

Wine and spirit bottles will be included in container deposit schemes in New South Wales and South Australia by late 2027, as both state governments move to expand recycling efforts. The new rules will also cover larger drink containers, such as those used for cordial, juice concentrates, and bigger bottles of flavored milks and fruit or vegetable juices. Containers for plain milk and health tonics will not be part of the scheme.

Officials from both states expect the expansion to prevent an additional half a billion beverage containers from ending up in landfills each year. Consumers will continue to receive 10 cents per eligible container returned. The changes are designed to give the wine and spirit industries, as well as collection points, enough time to prepare for the transition.

South Australian Premier Peter Malinauskas said it was time to take the next step in recycling policy. He noted that while council bin collections are convenient, only about 11 percent of the nearly 36,000 tonnes of glass containers collected in council bins are recycled effectively. He explained that many wine and spirit bottles placed in household recycling bins do not get recycled at the rates people might expect.

The expanded scheme is already in place in Queensland, and Western Australia has committed to similar changes. The Northern Territory recently announced plans to introduce legislation for its own expansion.

South Australia’s Environment Minister Susan Close highlighted that glass is a fully recyclable material if kept separate from contaminants like cardboard or plastic. She said that keeping glass separate allows it to be reused for new bottles repeatedly. South Australia was the first state to introduce container deposit legislation in 1977, and the upcoming expansion will coincide with the scheme’s 50th anniversary.

The original purpose of South Australia’s deposit scheme was to address litter problems, focusing on drinks often consumed outside the home, such as soft drinks and flavored milks. Minister Close said both the wine and spirit industries would be consulted during the design phase of the expanded program, acknowledging that some sectors have been more sensitive to these changes.

The announcement comes shortly after South Australia banned fish-shaped plastic soy sauce containers as part of its ongoing efforts to reduce single-use plastics.

In New South Wales, Environment Minister Penny Sharpe said expanding the scheme would benefit both recycling industries and consumers. She estimated that at least 27,000 tonnes of materials would be diverted from landfill each year in NSW alone. Sharpe cautioned residents not to bring wine bottles to Return and Earn machines until the new rules are implemented, emphasizing that authorities are working with industry partners to ensure a smooth transition by mid-2027.

However, not all stakeholders support the move. Australian Grape and Wine, the peak body for the wine industry, expressed deep disappointment with the decision. Chief executive Lee McLean said the timing could not be worse for winemakers already facing global oversupply, rising production costs, and ongoing challenges from lost export markets like China. He warned that adding $85 million in costs nationally through the expanded deposit scheme would increase pressure on producers.

The industry group called on governments to allow enough time for businesses to adapt, adopt a national approach, and consider exemptions or cost relief for small producers who may struggle with added expenses. The consultation process is expected to continue as both states work toward full implementation by late 2027.