Environment Protection (Beverage Container Deposit Scheme) Amendment Bill 2024

Consultation has concluded

What was the consultation about?

The South Australian Government has committed to modernising South Australia’s beverage container deposit scheme (CDS). In September 2024 the Environment Protection Authority (EPA) commenced consultation on a bill to reform the system: the draft Environment Protection (Beverage Container Deposit Scheme) Amendment Bill 2024.

The bill focuses on scheme governance and system modernisation. This stage of reform did not propose changes to which containers are eligible for a 10-cent refund in South Australia.

The EPA received feedback on the proposed reforms during the consultation period from 2 September to 25 October 2024. We received submissions from members of the public, CDS stakeholders, environment and community groups, the beverage manufacturing and supply sector, the resource recovery and recycling sector, and government agencies.

Stakeholder and community feedback has helped refine the draft legislation to ensure CDS governance reform objectives are achieved.

Background

In 1977, South Australia led the way with the first CDS in Australia. Now, we are on track to have a CDS in each state and territory.

The success of the CDS to date has been made possible by a highly engaged South Australian community and the many businesses involved in container recovery and recycling, including beverage producers, suppliers and retailers, and non-government organisations.

Despite the success of the scheme in reducing litter and waste, reforms are needed to modernise the governance of Australia’s oldest CDS.

Proposed reforms to modernise the CDS have been shaped through consultation with CDS participants, industry, and community stakeholders. This includes feedback received on the 2021 Discussion Paper, which outlined reform opportunities for SA’s CDS, and a 2019 Scoping Paper.

Proposed reforms in the draft Environment Protection (Beverage Container Deposit Scheme) Amendment Bill 2024 set out:

  • Updated objectives and features of the CDS that build upon the scheme’s success in reducing litter and waste.
  • The appointment and functions of a not-for-profit scheme coordinator who would be responsible for the administration, management, and proper operation of the scheme.
  • Clear roles and responsibilities for the scheme coordinator including around contract arrangements with scheme participants, scheme cost-setting practices, performance targets, customer service standards, and IT-based payment, auditing and reporting requirements.
  • A framework to recognise eligible material recovery facilities in the scheme.
  • A scheme price review mechanism for the Essential Services Commission of South Australia.
  • Clear roles for government oversight and Environment Protection Authority fee reform.
  • Transitional provisions including a process to be followed to bring existing collection depots into a reformed scheme.

Modernisation of CDS governance is expected to unlock unrealised value in SA’s circular economy and remove barriers to expanding community participation.

The proposed reforms will also lay the foundations for SA to join other jurisdictions in the harmonisation of containers (size and products), refund amounts, standards for labelling, and community education in CDSs.

What are the next steps?

The draft CDS Amendment Bill will require introduction to, and consideration by, the South Australian Parliament. Subject to the passage of the Bill through Parliament, work would commence on drafting various regulations for consultation to support reform.

What was the consultation about?

The South Australian Government has committed to modernising South Australia’s beverage container deposit scheme (CDS). In September 2024 the Environment Protection Authority (EPA) commenced consultation on a bill to reform the system: the draft Environment Protection (Beverage Container Deposit Scheme) Amendment Bill 2024.

The bill focuses on scheme governance and system modernisation. This stage of reform did not propose changes to which containers are eligible for a 10-cent refund in South Australia.

The EPA received feedback on the proposed reforms during the consultation period from 2 September to 25 October 2024. We received submissions from members of the public, CDS stakeholders, environment and community groups, the beverage manufacturing and supply sector, the resource recovery and recycling sector, and government agencies.

Stakeholder and community feedback has helped refine the draft legislation to ensure CDS governance reform objectives are achieved.

Background

In 1977, South Australia led the way with the first CDS in Australia. Now, we are on track to have a CDS in each state and territory.

The success of the CDS to date has been made possible by a highly engaged South Australian community and the many businesses involved in container recovery and recycling, including beverage producers, suppliers and retailers, and non-government organisations.

Despite the success of the scheme in reducing litter and waste, reforms are needed to modernise the governance of Australia’s oldest CDS.

Proposed reforms to modernise the CDS have been shaped through consultation with CDS participants, industry, and community stakeholders. This includes feedback received on the 2021 Discussion Paper, which outlined reform opportunities for SA’s CDS, and a 2019 Scoping Paper.

Proposed reforms in the draft Environment Protection (Beverage Container Deposit Scheme) Amendment Bill 2024 set out:

  • Updated objectives and features of the CDS that build upon the scheme’s success in reducing litter and waste.
  • The appointment and functions of a not-for-profit scheme coordinator who would be responsible for the administration, management, and proper operation of the scheme.
  • Clear roles and responsibilities for the scheme coordinator including around contract arrangements with scheme participants, scheme cost-setting practices, performance targets, customer service standards, and IT-based payment, auditing and reporting requirements.
  • A framework to recognise eligible material recovery facilities in the scheme.
  • A scheme price review mechanism for the Essential Services Commission of South Australia.
  • Clear roles for government oversight and Environment Protection Authority fee reform.
  • Transitional provisions including a process to be followed to bring existing collection depots into a reformed scheme.

Modernisation of CDS governance is expected to unlock unrealised value in SA’s circular economy and remove barriers to expanding community participation.

The proposed reforms will also lay the foundations for SA to join other jurisdictions in the harmonisation of containers (size and products), refund amounts, standards for labelling, and community education in CDSs.

What are the next steps?

The draft CDS Amendment Bill will require introduction to, and consideration by, the South Australian Parliament. Subject to the passage of the Bill through Parliament, work would commence on drafting various regulations for consultation to support reform.

Consultation has concluded

  • Public Consultation Summary Report released

    The EPA has prepared a Public Consultation Summary Report that gives an overview of the feedback received on the proposed reforms in the draft Bill.

    The EPA received 96 submissions over the eight-week public consultation period. All submissions were reviewed and analysed, with nine key themes and nine additional themes emerging. The key themes included:

    1. Scheme Fees, Price and Costs
    2. Stage 2 Reforms
    3. IT-based Systems and Technology
    4. Scheme Coordinator Board Composition
    5. Contracts
    6. Simplified Returns, Sorting and Processing
    7. Circular Economy Outcomes
    8. Single Not-for-profit Scheme Coordinator Governance Model
    9. Definitions and Terminologies.

    The Public Consultation Summary Report includes a history of the CDS, a summary of the consultation process conducted by the EPA, detailed analysis of key themes, additional feedback from stakeholder submissions, and the next steps to advance the Bill.

    Public Consultation Summary Report – Environment Protection (Beverage Container Deposit Scheme) Amendment Bill 2024

    The reforms included in the Bill form Stage 1 of a two-stage process. Stage 2 will commence only when Stage 1 – the passage of the bill and the establishment of a not-for-profit scheme coordinator – has been completed.

    Stage 2 will focus on national harmonisation and scope expansion, including which beverage containers are eligible for refund. More information about changes to the scheme are available on the EPA website.

    The EPA thanks all stakeholders and members of the community who provided their valuable feedback. The feedback will ensure South Australia’s CDS is an ongoing success, growing our economy and keeping waste out of our environment.