The Compostable Packaging Dilemma in Victoria: Is It Really Worth It?

Is switching to compostable packaging really worth it? More Victorian businesses are starting to ask the hard questions.

On the surface, it seems like a simple sustainability win - reduce plastic, support circularity, and send less to landfill. But in Victoria, the reality is more complex. Compostable packaging is often not accepted in food organics collections, and that has major implications for your waste strategy.

So is it worth it? Let’s explore what’s really happening - and what you need to know before making the switch.

Why compostable packaging often ends up in landfill in Victoria.

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Victoria’s Composting Crunch

Despite the growing availability of compostable packaging (think BioPak, Detpak), most composting facilities in Victoria won’t accept it — even if it’s certified to Australian Standards.

Here’s why that is, and why it matters:

🕒 Short Composting Times

Facilities like Veolia’s Bulla site process waste in just 6–10 days. Compostables often need 12+ weeks to break down, which slows down throughput - and throughput = revenue. Facilities aren’t incentivised to accept packaging that limits their capacity.

 🧪 PFAS & Chemical Concerns

Authorities remain cautious about PFAS in food-safe coatings. While certified compostables are generally PFAS-free, policy is erring on the side of caution. Studies show low risk, but public trust in compost quality is on the line - so many processors won’t take the chance.

🚛 Capacity Constraints

Victoria’s FOGO rollout is ramping up, but processing capacity hasn’t kept pace. Most facilities are struggling to manage food and garden waste alone. Compostable packaging is viewed as non-essential and disruptive, especially with a statewide ban likely by 2027.

🔄 Contamination Risk

Compostable items can look like plastic, especially once used. In post-consumer organics, it’s easy for non-compostables to sneak in. Most facilities won’t risk it. Add in confusing labels (“biodegradable,” “plant-based,” etc.) and contamination becomes inevitable. 

It looks green - but where does it go?

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What About Private Composters?

Some businesses believe they can bypass council services and work with a private composter - and in a few rare cases, this is true. There are limited commercial services (like Compost Connect) that partner with industrial composters.

But here’s the catch:

Victoria is moving toward a blanket ban on compostable packaging in organics bins, even for commercial sites. Draft standards released in 2024 propose excluding compostables from all FOGO streams - and this is likely to be implemented statewide by 2027.

So even if a private provider currently accepts it, this may change very soon.

And importantly: most waste vendors already do not collect compostable packaging with food organics. If you place compostables in your organics bin without confirmation, you’re likely contaminating the entire load, sending it all to landfill - the complete opposite of what you intended.

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What Are Other States Doing?

The contrast is sharp.

• South Australia actively supports compostable packaging. Councils allow it in FOGO bins, and commercial processors are equipped to handle it. It’s become part of a successful food waste diversion strategy.

• New South Wales banned compostable packaging from FOGO bins in 2022, citing PFAS and microplastic concerns - but left the door open for dedicated commercial solutions.

• Queensland is somewhere in the middle, still developing clear policy on compostables.

• Victoria, meanwhile, is heading toward restriction. Draft standards released in 2024 propose an official ban on compostable packaging in green bins by 2027 - even certified liners.

And the federal government? There’s no clear national stance. Despite increasing interest in compostable packaging and growing concern about food waste, there’s been no coordinated federal policy on how compostables should be managed — or whether they belong in FOGO systems at all. In the absence of national guidance, each state is charting its own path, leaving businesses to navigate a patchwork of rules and infrastructure.

This puts businesses and institutions in a bind: compostable packaging is available, it's marketed as sustainable… but there's nowhere for it to go — because if REDcycle taught us anything, it’s that a good system on paper doesn’t always work in practice.

Compostables are in… or out — depending where you are.

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So, Is Compostable Packaging Worth It?

It depends on your goals — and your waste contractor.

Here’s how to think about it:

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What Should Businesses Do Now?

🎯 Know your waste fate Ask your waste provider directly: what happens to compostable packaging? If it goes to landfill, factor that into your decision-making — and don’t make sustainability claims that aren’t backed by outcomes.

♻️ Reusables first Reusable packaging systems (e.g. returnables, reusables, BYO) remain the most effective way to reduce both landfill and emissions over time.

🥕 Focus on pre-consumer food organics This is the cleanest, most controllable stream of organic waste. Back-of-house prep waste is easier to separate and much more likely to be accepted by your waste vendor — helping you reliably hit landfill diversion and emissions goals.

🧃 Choose recyclables wisely If compostables aren’t viable, opt for packaging that is easily recyclable in your location (like PET or PP), and ensure it stays clean to improve recovery rates.

👀 Monitor the policy shift Victoria’s composting landscape is changing fast. With a likely ban on compostables in organics by 2027, stay engaged with what’s accepted where, and reassess your strategy accordingly.

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Final Thought

We all want to reduce waste. But switching to compostable packaging without a viable end-of-life pathway can end up doing more harm than good. In Victoria, the infrastructure just isn’t there yet - and more often than not, compostables still end up in landfill.

The smarter move right now? Focus on what you can control: clean, pre-consumer food organics, and work closely with your waste vendor to make sure your strategy actually delivers real results.

Because it’s not just about looking green - it’s about making the system work.

And sure, the full answer probably lies in a detailed life cycle assessment tailored to your operations… But who’s got the budget for that?

So don’t be afraid to ask questions. The more we challenge the system and shine a light on the gaps, the closer we get to real, scalable change.

Shrunk Innovation Group

Smart waste strategies for complex environments.

👉 ww.wastebyshrunk.com