[Home](/)/[Resources](/resources)/Australia Packaging Covenant AustraliaPackaging # Australia Packaging Covenant (APCO): Sustainable Packaging Obligations for Electronics Companies Electronics packaging — polystyrene foam, multi-layer plastics, metallised films — is among the hardest to transition under Australia's 2025 National Packaging Targets. APCO membership and annual PREP reporting are how brand owners demonstrate progress and stay on the right side of retail channel requirements. Copy Link[Share on WhatsApp](https://wa.me/?text=https%3A%2F%2Fkrono-labs.com%2Fguides%2Faustralia-packaging-covenant) At a glance Body APCO (Australian Packaging Covenant Organisation) Targets 2025 National Packaging Targets Membership Voluntary (but effectively mandatory for brand owners) Report Annual PREP report ## How APCO works for electronics brand owners ### APCO structure The Australian Packaging Covenant is a co-regulatory arrangement between government and industry. Brand owners, manufacturers, and retailers who package goods for Australian consumers are expected to be APCO signatories. Membership is technically voluntary but effectively mandatory — government procurement, retail channel agreements, and investor ESG frameworks increasingly require it. ### 2025 National Packaging Targets Four industry-wide targets apply: 100% of packaging to be reusable, recyclable, or compostable; 70% of plastic packaging to be recycled or composted; an average of 30% recycled content across all packaging; and the phase-out of problematic and unnecessary single-use plastic packaging. These targets are assessed at the industry level, not per company. ### PREP report APCO members complete an annual Packaging Recyclability Evaluation Portal (PREP) report. The PREP assessment scores each packaging type on recyclability, recycled content, and the presence of problematic materials. Members commit to improvement actions and report progress year-on-year. The PREP score is the primary measure of a company's packaging performance against APCO targets. ### Electronics packaging specifics Electronics packaging commonly uses expanded polystyrene (EPS) foam, multi-layer plastic films, metallised films, and non-recyclable composite materials. These are among the most challenging packaging types to score well on PREP. APCO targets specifically require companies to assess and transition away from these materials — alternative cushioning (moulded pulp, corrugated inserts) and mono-material flexible packaging are common replacement directions. ## How to join APCO and meet your reporting obligations 01 Confirm whether your company places packaged electronics products on the Australian consumer market — if yes, you are expected to be an APCO member regardless of where packaging decisions are made upstream; the obligation follows the brand owner who sells into Australia. 02 Join APCO as a brand owner member — membership fees are tiered based on Australian revenue; members receive access to the PREP assessment tool, APCO reporting templates, and the annual reporting cycle guidance. 03 Complete a packaging audit across all packaging types (primary, secondary, tertiary) — assess each format for recyclability using the PREP tool; identify non-recyclable components such as polystyrene foam, multi-layer films, and non-recyclable labels or inks. 04 Set improvement targets — APCO members commit to specific, time-bound actions for increasing recyclability and recycled content; document these in your annual PREP report alongside the baseline assessment results. 05 Submit the annual PREP report to APCO by the due date — reports feed into aggregate national reporting used to track industry progress against the 2025 National Packaging Targets; members receive individual performance scores and sector benchmarking. ## Frequently asked questions ### Is APCO membership mandatory for electronics companies in Australia? APCO membership is technically voluntary under the co-regulatory framework, but it is effectively expected for brand owners who place packaged goods on the Australian market. Major retailers increasingly require APCO membership as a condition of ranging products. Government procurement policies, investor ESG frameworks, and the National Packaging Targets all reinforce the expectation. Electronics companies that sell through mainstream Australian retail channels are at risk of de-listing if they cannot demonstrate APCO compliance. ### What are the 2025 National Packaging Targets and which apply to electronics packaging? The four 2025 National Packaging Targets are: (1) 100% reusable, recyclable, or compostable packaging; (2) 70% of plastic packaging recycled or composted; (3) 30% average recycled content in packaging; and (4) phase-out of problematic and unnecessary single-use plastic packaging. All four targets apply to electronics packaging. The most challenging for electronics companies are typically the recyclability target (EPS foam and multi-layer films score poorly) and the recycled content target (many electronics packaging components use virgin materials). ### What does 'recyclable' mean under APCO's PREP assessment? Under PREP, 'recyclable' means the packaging can be collected, sorted, and recycled through kerbside or drop-off systems in Australia — it is not enough that the material could theoretically be recycled. Each packaging format is assessed against Australian collection and sorting infrastructure. EPS foam, for example, is not widely collected kerbside and scores poorly even though EPS recycling facilities exist. The PREP tool applies Australian-specific recyclability ratings to each packaging component. ### What happens if a company doesn't join APCO? Non-member companies are not directly penalised under the co-regulatory framework, but they face increasing commercial and reputational consequences. Major Australian retailers are removing non-APCO-member products from their shelves. Government procurement specifications increasingly require APCO membership. The National Packaging Targets framework may evolve to include regulatory backstops if voluntary industry uptake is insufficient — the government has flagged this possibility in its packaging policy reviews. **Disclaimer:** Educational resource only. Regulatory requirements change and vary by product category. Consult an accredited test laboratory or qualified compliance engineer before making certification decisions. 🇦🇺 Australia roadmap for plastic packaging Every standard, document, and test that applies — free, no account required. See your free roadmap[ Want an expert to take plastic packaging through 🇦🇺 Australia compliance for you? One consultant from Krono's compliance team takes your product from requirements to legal sale, with a fixed quote before any work starts. 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