After months of pressure from the NSW Nationals and small business owners across the state, the Minns Labor Government has today announced plans to scrap its coffee cup mandate… after the election.
Labor’s Environmental Legislation Amendment (Plastic Reduction and Container Recycling) Bill 2026 requires cafés and takeaway businesses to offer customers a reusable cup through a reuse scheme, while preventing them from charging for it.
A barista who forgets to offer a reusable cup during the morning rush could face a $22,000 fine.
Yesterday Premier Chris Minns defended his reusable coffee cup mandate, saying it was good policy with bad messaging. Less than 24 hours later, Environment Minister Penny Sharpe said Labor would reverse the laws after the March 2027 election.
This red tape confusion comes at a time of record business insolvencies and mum and dad businesses struggling to absorb the costs of rising interest rates, changes to credit card surcharges, and spiralling fuel costs.
That is why the NSW Nationals will introduce a Bill to immediately repeal Labor’s reusable coffee cup mandate in the next Parliamentary sitting week to ensure these unnecessary laws are removed now, and not after the election.
NSW Nationals Leader and Shadow Minister for Small Business Gurmesh Singh said it is great to see the Minister has reconsidered her position after months of pressure.
“We now have an extraordinary situation where Labor has made a commitment to repeal their own legislation next year if they win the election,” Mr Singh said.
“Businesses can’t wait that long. They’ve had enough of pointless government intervention and red tape. We will bring our Repeal Bill to Parliament next month to give business owners the certainty they need and deserve.”
“Congratulations to the thousands of small business owners across the state who have made their voices heard on this issue.”
Opposition Leader Kellie Sloane said Labor created this mess by attempting to fix a problem that did not exist.
“We stood with cafés and small businesses to stop this mandate, but Labor refused to listen and support our sensible amendments,” Ms Sloane said.
“We will now give Labor another chance to reverse this legislation before Christmas by introducing a Repeal Bill next month.”
