Supermarkets will still be central to the recycling of soft plastics in Australia under a new scheme proposed by the ACCC.

It could also result in more expensive groceries.

The recycling scheme under the Soft Plastics Taskforce is set to replace the REDcycle program, which collapsed in 2022.

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It was revealed that about 11,000 tonnes of scrunchable trash collected at Woolworths, Coles, and Aldi, was being stockpiled for months rather than being processed.

The new voluntary recycling scheme will by industry-led, and is set to be funded through levies that could be passed on to customers through the price of groceries.

Woolworths, Coles, and Aldi, and food giants Nestle, Mars and McCormick Foods, are already onboard for the recycling revamp.

Levies on manufacturers and supermarkets would be based on how much soft plastic the scheme participants put on the market.

It is estimated that 70 per cent of soft plastic packaging is business-to-consumer, with more than 540,000 tonnes of soft plastic packaging used by manufacturers in packaging between 2022 and 2023.

Only 6 per cent of that was recovered, according to data published by the Australian Packaging Covenant Organisation (APCO).

The new scheme will be run by Soft Plastics Stewardship Australia (SPSA).

The watchdog previously authorised the supermarkets giants to process the soft plastics stockpile left over from the REDcycle program, and gave the green-light to restart instore collection pilots until July 2026.

“It is clear that many Australians are concerned about the environmental impacts of soft plastic packaging and want to recycle it,” ACCC Deputy Chair Mick Keogh said.

“While we know that soft plastic recycling has faced many challenges in Australia, we consider that the SPSA scheme is an important stepping stone to expanding collections and recycling.”

The ACCC considers that these public environmental benefits outweigh any potential detriment to competition that results from the collaboration through SPSA’s scheme.

The ACCC is proposing to grant authorisation for eight years and to include a reporting condition to ensure transparency of the scheme’s performance.

The participating supermarkets and manufacturers will be barred from making exclusive contracts with processors, under an additional condition from the ACCC.

Submissions to the ACCC’s draft determination are due in two weeks.