NEWS: NSW Plastic Reforms Set to Reshape Hospitality Practices, with Recyclable Coffee Cups by 2028

New legislation introduces changes to takeaway packaging, reusable cups and food containers as New South Wales steps up efforts to reduce plastic waste.

Hospitality businesses across New South Wales (NSW) will face new requirements for disposable packaging and reusable drinkware following the passage of the state government’s second phase of plastic reforms, aimed at reducing waste and improving recycling.

A key change for cafés and coffee shops is the requirement for single-use coffee cups to be recyclable by 2028. Contrary to initial reports and public confusion, takeaway coffee cups will not be banned. Instead, the reforms aim to make cups easier to recycle while encouraging customers to choose reusable alternatives.

Under the new requirements, cafés will need to provide mugs or glasses for customers dining in and accept reusable cups brought by customers for takeaway orders. The government will also introduce voluntary reusable-cup schemes, allowing customers to borrow cups and return them after use. Participation in these schemes will not be mandatory for small businesses.

The reforms also set a 2030 deadline for soy sauce fish containers to become recyclable, alongside broader changes to the design and recyclability of takeaway food packaging.

Tackling NSW’s Growing Plastic Waste Problem

According to the NSW Government, more than 800,000 tonnes of plastic waste are sent to landfill in the state each year. The government has warned that continued plastic pollution poses significant risks to waterways, wildlife and the wider environment.

NSW Minister for the Environment Penny Sharpe said the legislation was developed in consultation with businesses and industries to support the transition towards reusable alternatives.

“The legislation we’ve just passed contains the biggest reforms of problematic plastics in a generation and has been designed in partnership with businesses and industries to support a smooth transition to reusable alternatives,” Sharpe said. “Our wildlife, our waterways and our health will benefit from these changes.”

Reuse Trials to Support the Transition

From as early as 2027, the government plans to conduct trials of reusable packaging systems at government-owned venues, including stadiums and office buildings. These initiatives will allow beverages and takeaway meals to be served in packaging designed to be returned, washed and reused.

Similar reuse models are already operating at selected locations across NSW, including Barangaroo, festivals and some stadiums. The planned trials are expected to provide further opportunities to test how reusable packaging systems can operate in high-volume food and beverage settings.

For hospitality operators, the changes highlight the importance of reviewing packaging choices, service procedures and customer-facing practices ahead of the relevant implementation dates.

More Changes Ahead for Food Packaging

The second phase of the NSW plastics reforms builds on restrictions introduced from 2022, which included bans on lightweight plastic shopping bags, single-use plastic straws, stirrers, cutlery, plates and bowls.

Further measures under the new phase include:

• Late 2027: Phasing out plastic bread tags and pizza savers.

• By 2028: Requiring single-use coffee cups to be recyclable.

• By 2030: Requiring soy sauce fish containers to be recyclable.

• By 2030: Phasing out non-compostable plastic fruit and vegetable stickers.

• By 2030: Introducing requirements for caps and lids on plastic bottles to remain attached to the bottle.

The legislation also calls for the redesign of takeaway food containers, including plastic bowls with lids, bento boxes and sushi trays, to ensure they can be recycled safely.

What Hospitality Businesses Should Do Now

Although the reforms will be introduced progressively, cafés, restaurants, takeaway outlets and food-service operators can begin preparing by reviewing their existing packaging and identifying alternatives that meet upcoming recyclability requirements.

Businesses should also assess their dine-in drinkware, procedures for accepting reusable cups and potential options for participating in voluntary reuse schemes. Keeping track of implementation timelines and official guidance will be important as further details are released.

The reforms signal a gradual shift in NSW’s hospitality sector towards more recyclable packaging and reusable food-service products. For businesses, early preparation can help support a smoother transition while responding to changing expectations around waste reduction and environmental responsibility.