Productivity Commission inquiry to explore circular economy benefits

Dept of Climate Change, Energy, Environment & Water

The Hon Tanya Plibersek MP, Minister for the Environment and Water

The Hon Jim Chalmers MP, Treasurer


The Albanese Government has tasked the Productivity Commission to lead an inquiry into opportunities to boost circularity across the Australian economy.

In a circular economy, materials and products are kept in use longer, including by designing longer lasting and recyclable products, and by boosting waste and recycling infrastructure.

This inquiry is about exploring sustainable solutions that are good for the environment and good for business – helping to cut waste going to landfill while also encouraging more efficient use of raw materials.

Better quality and longer lasting products and better labelling of these products are also good for consumers, reducing the need to throw away and replace poorly made goods.

Over the next 12 months, the inquiry will:

  • Explore the potential for Australia to improve resource productivity in ways that benefit the economy and the environment – including by providing more choices for consumers.
  • Identify priority areas for Australia, including considering where other countries have made the greatest progress.
  • Identify barriers that limit the efficient use of raw materials and prospective approaches to address them.

The Productivity Commission inquiry was a key recommendation of the Circular Economy Ministerial Advisory Group, which advises the Australian Government on ways to realise opportunities associated with the circular economy.

Quotes attributable to the Minister for the Environment and Water, Tanya Plibersek MP:

“The Albanese Government is building a circular economy where we waste less and reuse more. That’s better for the environment and better for the economy. For every job in landfill, there are three jobs in recycling.

“Australia currently has the third highest material footprint per capita in the OECD, and the fourth lowest rate of materials productivity. According to the most recent National Waste Report, Australian households and businesses generate the equivalent of almost three tonnes of waste per person, per year.

“The transition to a circular economy clearly requires economy-wide changes, with innovative thinking and reforms from governments and businesses. This is the opportunity that the Productivity Commission will explore, and I look forward to its report.”

Quotes attributable to the Treasurer, Jim Chalmers MP:

“This is all about looking into new ways to add value to our material resources to create more jobs and more opportunities for more people.

“By re-using and recycling and repairing more of our waste, we can create more opportunities right through the supply chain for Australian companies and Australian workers.

“Australia’s economic output per kilogram of materials consumed is less than half the OECD benchmark, and this inquiry will look at how we can lift that performance.”

/Public Release. View in full here.