Waste Avoidance and Resource Recovery (Container Deposit Scheme) Regulation 2017

Definitions and scope. The Regulation supplies particular definitions that determine who and what falls within the Scheme. For example, the Regulation defines alternative waste treatment plant operator, material recovery facility operator classes, reward schemes, Scheme commencement day (1 December 2017), and what constitutes milk and flavoured milk for exclusion purposes (clause 3; clauses 7 and 4). Definitions are consequential because they alter which operators may claim processing refunds (clause 18) and what beverages or containers are excluded from Part 5 (clauses 4 and 5).

Refund amount and refund marking. The monetary refund is prescribed as 10 cents per eligible container (clause 6). The Regulation also treats an equivalent redeemable value under a rewards scheme or coupon as satisfying the refund amount requirement; it defines how to assess redeemable value (clause 6(2)). Containers must carry a refund marking with the exact phrase “10c refund at collection depots/points in participating State/Territory of purchase” in clear and legible characters (clause 22B). This creates a labelling standard binding on suppliers with legal consequences through the container approval and supply arrangement regimes.

Barcode and container technical standards. Containers belonging to a class must comply with a barcode requirement: either a GTIN or an EAN/UPC-compliant product barcode meeting GS1 standards, with digit length between 8 and 13 and no duplication of GTIN/product barcodes (clause 22A). For metal containers, the opening mechanism must not be ring-pull or other mechanisms designed or reasonably capable of separating parts from the container (clause 23A). These technical prescriptions tie the Scheme to global barcode standards and to a product design standard intended to preserve the integrity of returned containers.

Approvals and fees. The EPA is given authority to determine fees (application and approval fees for container approvals and collection point arrangements) by Gazette order (clauses 8, 22, 11, 16, 26). The EPA may determine classes of container approval on any bases it thinks fit, including physical characteristics and use (clause 23). Approvals may be granted with conditions and can be varied, suspended or revoked under grounds set out in the Regulation (clauses 11, 13-14, 25). Container approval is subject to specific conditions about barcode compliance and opening mechanisms (clause 23A).

Collection points and network agreements. The Regulation operationalises collection point approvals: application form and fee, the EPA’s decision-making power and grounds for refusal, notification timeframes and refund of approval fees upon refusal (clauses 11-12). Network operator agreements must include performance targets for the number and hours of collection points, and the Minister must have regard to community access principles in Schedule 1 when determining those targets (clause 9A). Schedule 1 contains prescriptive formulas for minimum numbers of collection points per population and minimum opening hours by area type.

Processing refunds and proof. Material recovery facility operators may claim processing refunds subject to timing, certification and evidence rules: claims are quarterly and must be assessed and accompanied by a declaration signed by an approved person certifying correct application of the processing refund protocol (clause 19). Processing refunds are not payable for containers obtained before Scheme commencement day or for containers collected as domestic waste in council areas except in specified circumstances (clause 18). The Regulation forbids disposal to landfill of containers in respect of which a claim for a processing refund is made, and attaches significant penalties (clause 20).

Recordkeeping, payments and limits on bulk deliveries. Collection point operators must keep detailed records of claims, declarations and identity documentation for bulk deliveries and certain claims (clause 32). A refund may be paid by EFT, coupon, rewards scheme, or other methods determined by the EPA, and if EFT is required the operator must pay within 3 business days after counting by machine, failing which the operator commits an offence (clause 30). Bulk-delivery thresholds trigger requirements for refund declarations and proof of identity; the Regulation distinguishes between a transition period and later periods (clause 31 and Schedule 2 transitional provisions).

Discretion and review. The Regulation grants discretion to the EPA and Minister on approvals, fit-and-proper considerations, conditions, suspension and revocation. It also preserves rights to administrative review by the Civil and Administrative Tribunal for affected persons in relation to collection point approvals and variations (clause 15). The EPA may require further information when considering applications and may impose conditions for environmental or human health protection (clause 11(2), (3A)).

Reporting and transparency. The Scheme Coordinator must prepare a detailed report covering number and location of collection points, numbers of containers and operators claiming refunds, amounts paid under network arrangements, operating costs, arrangements for confidentiality and governance, incidents of false claims and safety incidents, and collection and recycling rates (clause 21). The Regulation requires such information to be provided both in aggregate and by reference to individual operators for certain items (clause 21(2)).

Correspondence with other jurisdictions. The Regulation identifies corresponding laws in other Australian jurisdictions for the purposes of Part 5, including the relevant Acts of the ACT, Queensland, Northern Territory, South Australia and Western Australia (clause 32A). The Regulation also cross-references multiple NSW and Commonwealth Acts to align interpretation and administrative connections (see clauses 3, 4(2), 12(2)(c), and others).

Transitional and savings provisions. Schedule 2 sets transitional rules for container approval offences, prescribed approval conditions, claim timing for processing refunds covering periods before 31 March 2018, and bulk-delivery rules for claims before certain dates (Schedule 2). Those savings and transitional provisions affect when particular offences or obligations commence and therefore who can be charged in respect of historical conduct.

Suppliers of beverages and container manufacturers. Suppliers who place beverage containers on the NSW market are directly affected by container approval, barcode and refund-marking requirements. Container approvals are subject to EPA determination and conditions (clauses 22, 23, 23A, 24). Suppliers must ensure containers are marked with the precise refund wording (clause 22B) and carry a qualifying barcode meeting GS1 specifications (clause 22A). The Regulation also allows the EPA to refuse or suspend container approvals on grounds that include unsuitability of materials for recycling and non-compliance with conditions (clauses 24, 25).

Collection point operators and network operators. Entities operating collection points, including operators of reverse vending machines, are subject to approvals, conditions, recordkeeping, payment timing and minimum opening hour expectations via network operator agreements (clauses 11-16, 30-32, 9A). Collection point operators must accept or may refuse containers under specified circumstances (clause 29), must pay refund amounts by permitted means (clause 30), and must keep specific records and identity documents when required (clause 32). Network operators negotiate arrangements with the Scheme Coordinator and must include performance targets for collection point numbers and hours with regard to community access principles (clause 9A, Schedule 1).

Material recovery facility operators and alternative waste treatment plant operators. Material recovery facility operators are prescribed classes of operators eligible for processing refunds, with examples (alternative waste treatment plant operators, bottle crushing service operators, Lord Howe Island waste facility operators) explicitly prescribed (clause 7). To claim processing refunds, material recovery facility operators must comply with timing, certified assessment by an EPA-approved person, and evidentiary requirements (clause 19). Alternative waste treatment plant operators are ineligible for processing refunds where they process containers at premises for which they do not hold a resource recovery licence (clause 18(3)).

Local councils. The Regulation addresses containers collected in the course of domestic waste management services and links processing refund eligibility to refund sharing agreements or processing agreements between councils and material recovery facility operators, and to councils’ written notifications to the EPA about fairness of agreements (clause 18(2)). Councils therefore have leverage over whether material recovery facility operators can claim processing refunds for containers collected as domestic waste in council areas.

Consumers and people returning containers. Members of the public presenting containers for refund face limits on bulk deliveries without refund declarations and proof of identity (clause 31). They may receive the refund by EFT, coupons, rewards schemes or other EPA-determined methods (clause 30). The Regulation allows collection point operators to donate refund amounts to charitable organisations in particular circumstances, including where the presenter elects donation or where a reverse vending machine in a designated area is used (clause 29(4)-(5)).

Scheme Coordinator and EPA. The Scheme Coordinator must prepare detailed reports with operator-level and aggregate data for Scheme governance and transparency (clause 21). The EPA administers fees, approves forms and fees, determines classes of container approvals, approves or refuses collection point arrangements and container approvals, and may impose or vary conditions and enforce compliance (clauses 8, 11-16, 22-27). The Minister also has roles in fit-and-proper determinations and in approving performance targets for network operator agreements (clause 9, clause 9A).

Other operators and services. Bottle crushing service operators and operators on Lord Howe Island are explicitly included as material recovery facility operator classes (clause 7). Approved persons who assess processing refund claims and certify the application of processing refund protocols are required to be approved by the EPA (clause 19).

Entities with intersecting licences. Operators who hold resource recovery licences or environment protection licences under the Protection of the Environment Operations Act 1997 are implicated in definitions and eligibility for processing refunds (clause 3, clause 18(3)). The Regulation references environment protection legislation as relevant to fit-and-proper assessments (clause 9(4)).

Third parties and contractors. The Scheme Coordinator may enter into arrangements with third parties for transport, handling, recycling or processing of containers, and those arrangements must be disclosed in reports (clause 21(1)(h)). Persons who provide evaluations, assessments, certification and auditing services will be affected by the EPA’s approval requirements for persons assessing processing refund claims (clause 19).

Cross-jurisdictional suppliers and recyclers. The Regulation recognises corresponding laws in other Australian jurisdictions, which affects suppliers who operate interstate and recycling facilities located outside NSW that process containers for reuse or recycling and may be used to satisfy processing refund conditions (clause 32A, clause 17 definition of recycling facility).

Obligations to obtain approvals and pay fees. Applicants for Scheme administration agreements, container approvals and collection point arrangement approvals must lodge applications in EPA-approved forms, pay application fees determined by the EPA by Gazette order, and pay approval fees set under the Regulation on each anniversary of the approval (clauses 8, 22, 11, 16, 26). Holders of approvals must apply to vary conditions as required and must consent in writing where relevant (clause 13). Failure to pay approval fees is a ground for suspension or revocation of approvals (clauses 14, 25).

Design and labelling obligations. Suppliers must ensure containers comply with the barcode requirement and refund-marking requirement as conditions of container approval (clauses 22A, 22B, 23A). Container approvals are subject to conditions including barcode compliance and the prohibition of ring-pull opening mechanisms on primarily metal containers (clause 23A). The EPA may refuse an approval where materials or labelling are considered unsuitable for recycling or reuse (clause 24(c)).

Processing refund entitlement and claims regime. Material recovery facility operators may claim processing refunds subject to timing, certification by an EPA-approved person and proof that containers were recycled, delivered to a recycling facility in Australia, or consigned for transport overseas to a recycling facility (clause 19(1)-(4)). Processing refunds are not payable for containers obtained before Scheme commencement day or for domestic-waste-collected containers in council areas except where refund-sharing or processing agreements or council notifications allow (clause 18). Only one claim per quarter is permitted (clause 19(5)), and claims must be made within 28 days after the end of the quarter (clause 19(6)).

Restrictions on landfill and disposal. Material recovery facility operators must not permit containers in respect of which they have claimed processing refunds to be disposed to landfill, and must not claim processing refunds for containers they have permitted to be disposed to landfill or that they know have been so disposed (clause 20). The Regulation also specifies constructive knowledge and consignment circumstances under which an operator is taken to have permitted landfill disposal (clause 20(3)). Significant penalties attach: up to 400 penalty units for a corporation and 200 penalty units for an individual (clause 20, maximum penalties stated).

Collection point operator duties on acceptance and payment. Collection point operators may refuse to accept or to pay refunds for containers that are contaminated, pose health or safety risks, have unreadable refund marking or unscannable barcodes, or are so damaged that they cannot be confirmed as containers (clause 29(2)). For collection points in specified designated areas, operators may refuse containers made primarily of materials other than PET, HDPE, steel or aluminium (clause 29(3)). Collection point operators may elect to donate refunds to specified charitable or community organisations under the conditions set out (clause 29(4)-(5)). Payment methods are prescribed (clause 30(1)), and if payment by electronic funds transfer is required the operator must complete payment within 3 business days after machine counting, otherwise an offence is committed (clause 30(2)).

Recordkeeping and identity checks. Collection point operators must maintain specified records for each collection point, including number of containers claimed, number of claims, number of refund declarations requested and provided, and, for claims to which section 43(3)(a) or (b) of the Act applies, date and quantity and copies of proof of identity documentation (clause 32). Bulk delivery thresholds in clause 31 impose obligations: without a refund declaration and proof of identity, refund payment must not be made where number of containers in a claim exceeds prescribed thresholds; in 48-hour periods the total number presented by or on behalf of a person over 3,000 triggers the requirement for declaration and proof of identity (clause 31).

Fit and proper and performance duties. The Minister may consider a detailed range of matters in assessing whether an applicant for a Scheme administration agreement is fit and proper, including prior contraventions of environment protection legislation or Scheme agreements, convictions for fraud or dishonesty within the past 10 years, bankruptcy or insolvency events within the past 3 years, and financial capacity and reputation (clause 9). Network operator agreements must include performance targets for number and hours of collection points and a protocol for determining whether performance targets have been met; performance targets must be set with regard to community access principles in Schedule 1 (clause 9A).

Rights of administrative review. Affected persons may apply to the Civil and Administrative Tribunal for review under the Administrative Decisions Review Act 1997 in relation to collection point arrangement decisions, including refusals to issue approvals, imposition of conditions, variation refusals, and suspension or revocation (clause 15). The Regulation defines who is an affected person in this context as any network operator or collection point operator to whom the arrangement applies (clause 15(2)).

Reporting rights and duties. The Scheme Coordinator must include in reports an itemised set of information covering volumes, payments to operators, performance failures and strategies, operating costs, arrangements for confidentiality and governance, incidents of false claims and safety incidents, types of containers supplied and collection and recycling rates. Certain information must be provided both in aggregate and by reference to individual operators (clause 21(1)-(2)).

Discretion to impose environmental and safety conditions. The EPA may impose conditions on approvals to protect human health and the environment (clause 12(3A)) and may require evidence of development consents or council approvals as part of determining whether activities authorised or required under proposed arrangements are likely to obtain necessary local approvals (clause 12(2)(c)).

Statutory penalties and criminal offences. The Regulation provides for specific offences with penalty-unit maxima. Notable provisions include:

• Offence for contravening a condition of a collection point arrangement approval: up to 200 penalty units for a corporation and 50 penalty units otherwise (clause 14A).
• Offences for permitting claimed containers to be disposed to landfill or claiming refunds for containers disposed to landfill are subject to maximum penalties of 400 penalty units for a corporation and 200 penalty units for an individual (clause 20).
• Offence for a collection point operator who is required to pay by EFT but fails to cause payment within 3 business days after machine counting: maximum 100 penalty units for a corporation and 50 penalty units otherwise (clause 30(2)).

Administrative enforcement powers. The EPA has powers to grant approvals with conditions, to require further information and documents from applicants (clauses 11(2), 13(4)), to impose, vary, suspend or revoke approvals for collection point arrangements and container approvals on specified grounds (clauses 12, 13, 14, 25). The Regulation provides that suspension or revocation must be effected by written notice, and that the notice takes effect on the day given or at a later day specified (clause 14(2), clause 25). The EPA must refund approval fees if it refuses an application for a collection point arrangement approval (clause 12(5)) and must provide written reasons when refusing or varying (clauses 12(4), 13(5), 13(7)).

Timeframes and deemed refusal. The Regulation imposes timeframes on EPA decisions, with an application deemed refused if not determined within 42 days of lodgement or, if further information is required, within 42 days after provision of that information (clauses 12(6), 13(8)). This deemed refusal triggers rights of review and may impose operational pressures on both applicants and the EPA.

Administrative review by tribunal. Affected persons may seek administrative review through the Civil and Administrative Tribunal (clause 15). The Regulation specifies which decisions are reviewable and who qualifies as an affected person for the purposes of review.

Reporting and investigation powers. The Scheme Coordinator has reporting obligations that include identification of incidents of false claims and the arrangements used to minimise false claims and to protect confidentiality of commercial information provided by suppliers (clause 21(1)(k)-(l), (i)). The EPA may require approved persons, applicants and holders of approvals to provide additional information (clauses 11(2), 13(4)).

Interaction with other enforcement regimes. The Regulation explicitly references contraventions of environment protection legislation as relevant to fit-and-proper assessments for Scheme administration agreement applicants (clause 9(1)(a), (4)). Container approvals and processing refund entitlements refer to licences under the Protection of the Environment Operations Act 1997 (clauses 3, 18(3)), linking Scheme enforcement to existing environmental licensing and compliance regimes. The Regulation also requires the EPA to consider whether necessary local planning approvals have been obtained or likely to be obtained (clause 12(2)(c)), which can interface with local government enforcement and consent regimes.

Disclosure and confidentiality trade-off. Clause 21 requires the Scheme Coordinator to report on arrangements made to protect the confidentiality of commercial information provided by suppliers, but also requires disclosure by individual network operators and collection points for items in clause 21(1)(a)-(d) and (e)-(f). This creates an operational balance between transparency and confidentiality that the Scheme Coordinator must manage in its reporting and enforcement activities.

Remedies and suspension mechanics. The EPA’s right to impose, vary or suspend conditions, and to suspend or revoke approvals for non-payment of fees or contraventions, provides an administrative remedy that directly affects the ability of suppliers, collection points and networks to participate in the Scheme (clauses 13, 14, 25). Suspension or revocation also triggers notification obligations and gives rise to rights of review under clause 15.

Cross-references to the Act and other NSW legislation. The Regulation is tightly linked to the Waste Avoidance and Resource Recovery Act 2001 (the Act) and is drafted to operate for purposes of specific Act provisions. Several provisions explicitly operate “for the purposes of” a specified section of the Act, for example the list of excluded beverages for section 21 of the Act (clause 4) and excluded containers for section 22 of the Act (clause 5). Container approvals are framed for the purposes of section 40 of the Act (clauses 22, 23, 24, 25, 27), refund declarations for section 41 (clause 28), and payment and collection procedures for sections 42-43 (clauses 29-32). Practitioners must therefore read the Regulation together with the Act to assess the full legal effect.

Connection to environmental licensing and regulation. Definitions and eligibility for refunds reference licences under the Protection of the Environment Operations Act 1997 and resource recovery licences under that Act (clauses 3, 7, 18(3)). Fit-and-proper assessments under clause 9 consider contraventions of environment protection legislation, a term defined by reference to the Protection of the Environment Administration Act 1991 (clause 9(4)). The EPA may require evidence of development consents or local government approvals under the Environmental Planning and Assessment Act 1979 or Local Government Act 1993 when considering collection point arrangements (clause 12(2)(c)). Thus environmental licensing, planning consent and local government approval regimes intersect with Scheme approvals and operations.

Commonwealth therapeutic regulation. The exclusion for registered health tonics references the Australian Register of Therapeutic Goods under the Therapeutic Goods Act 1989 as a ground for exclusion from Part 5 (clause 4(2)(b)). That cross-reference pulls in Commonwealth regulatory determinations for certain liquids which are treated as out of scope of the container deposit scheme.

Interstate and interjurisdictional alignment. Clause 32A designates specific state and territory waste and beverage container laws as corresponding laws for the purposes of Part 5 of the Act, listing Acts in the ACT, Queensland, Northern Territory, South Australia and Western Australia. This facilitates interjurisdictional recognition and enforcement and is relevant where containers or refunds cross state or territory boundaries or where suppliers are national. Clause 17 defines “recycling facility” to include premises in or outside New South Wales that can lawfully carry out processing for reuse or recycling, permitting cross-border recycling arrangements to meet claim requirements.

Administrative review and tribunal law. The Regulation provides for administrative review by the Civil and Administrative Tribunal under the Administrative Decisions Review Act 1997 for decisions about collection point arrangement approvals (clause 15). This links administrative decision-making about approvals to the tribunal review regime and the judicial review and merits review frameworks of NSW.

Records and privacy intersection. Recordkeeping requirements in clause 32 require collection point operators to retain copies of proof of identity documentation for bulk deliveries and certain claims. That intersects with privacy, identity and data-protection considerations and potentially with other NSW or Commonwealth privacy laws, although the Regulation itself does not set out privacy obligations beyond record retention.

Interaction with school and zoo legislation. Clause 29(6) defines charitable or community organisations to include government and non-government schools within the meaning of the Education Act 1990, and Taronga Zoo is defined by reference to the Zoological Parks Board Act 1973. These definitions operate to identify permitted donation recipients and a specific designated area with amended acceptance rules (clause 29(3) and (4)).

Transitional provisions and commencement. The Regulation contains multiple amendment and commencement notes and savings provisions in Schedule 2 that interact with the dates on which certain Act provisions inserted by the Waste Avoidance and Resource Recovery Amendment (Container Deposit Scheme) Act 2016 commence (Schedule 2 Part 1, clauses 1-4). Clauses contain amendment footnotes indicating later amendments (see Amendment History), so historical compliance and liability must be assessed against the regulatory text as in force at the relevant time.

Gazette orders and delegated legislative instruments. The EPA is empowered to determine fees and payment methods by order published in the NSW Government Gazette (clauses 8, 22, 16, 26, 30(1)(d)). These delegated instruments supplement the Regulation and will affect the practical cost structure for applicants and approval-holders. Practitioners must therefore inspect relevant EPA Gazette orders in addition to the Regulation.

The Regulation as supplied includes amendment annotations that identify multiple legislative and subordinate instrument updates between 2017 and 2025. These footnotes record insertion, substitution and amendment events for particular clauses and schedules. The following summarises those amendments as recorded in the Regulation text itself. All references below are to the clause numbers in the Regulation and the amendment annotations shown in the provided text.

• 2017 amendments and insertions:

  • Many clauses are marked “Ins 2017 (377), Sch 1 [2]” or “Ins 2017 (650), Sch 1 [...]”, reflecting the insertion of Part 3, Division 1 (clauses 22A, 22B), certain container approval and collection point provisions, and the inclusion of Schedule 1 community access principles. Clauses 22A and 22B are noted as inserted by 2017 (650), Sch 1 [7]. Part 3 and various clauses bear insertion notes 2017 (377), Sch 1 [2] and 2017 (650), Sch 1 [10] indicating the staged implementation and renumbering.

• 2017 amendments to definitions and earlier clauses:

  • Clause 3 shows amendments noted as “Am 2017 (650), Sch 1 [1] [2]; 2023 (53), Sch 1[1] [2]”, indicating 2017 amendments to definitions and later 2023 changes.
  • Clause 21 (reporting by Scheme Coordinator) is annotated as “Am 2017 (650), Sch 1 [6]”, signifying that reporting obligations were amended in the 2017 schedule.

• 2019 and 2023 amendments:

  • Some clauses received amendments in 2019 and 2023: for instance, clause 19 (claims for refund amounts) was amended in 2017 and later references show additional edits in 2023.
  • Clause 4 (Excluded beverages) indicates an amendment in 2023 (53), Sch 1[3], which may have adjusted the list or definitions of excluded beverages.
  • Clause 5 (Excluded containers) shows “Am 2023 (53), Sch 1[4]”, indicating amendments to the container exclusion list in 2023.
  • Clause 23A, various new clauses and substitutions are attributed to 2017 (650), Sch 1 [8] and 2023 (53), Sch 1 [12].

• 2023 comprehensive update to collection point arrangements and approvals:

  • Division 2 (Collection point arrangements) shows substantial substitution and additions with a suite of amendments annotated “Subst 2023 (53), Sch 1[5-11]” covering clauses 10-16 and related administrative procedures and penalties. Clause 14A (offence of contravening condition of approval) is recorded as inserted by 2023 (53), Sch 1[10].

• 2025 amendment:

  • Clause 30 has an annotation “Am 2025 No 48, Sch 3.15.” reflecting a 2025 amendment to payment provisions; the text shows clause 30(3) repealed and other edits noted.

• Savings and transitional amendments:

  • Schedule 2 contains multiple insertion and amendment notes including “Ins 2017 (377), Sch 1 [4]” and “Am 2017 (650), Sch 1 [12] [13]; 2019 (556), cl 3.” These provide transitional relief, particularly about container approval offences and specified transition periods (Schedule 2 Part 1, clauses 1-4).

• Renumbering and substitution:

  • Clause 28 is noted as having been renumbered from clause 33 by 2017 (650), Sch 1 [11]. Clause 27 was substituted in 2023 (53), Sch 1[14]. Other clauses bear similar renumbering and substitution annotations.

Readers must consult the NSW legislation website and the consolidated Regulation with schedule histories to trace exact textual changes and to obtain the current text of the EPA orders that determine fees and payment methods. The Amendment History recorded in the Regulation itself is limited to brief footnote citations to amending instruments and does not set out the textual content of each amending instrument. For precise legal history and operative text at a given time, consult the Gazette orders and the formal consolidated Regulation on the NSW legislation website.

The Regulation text provided contains no references to judicial decisions or cases. It names no cases, and the footnotes record only statutory amendment instruments and schedules, not litigation. Clause 15 provides a statutory right to administrative review by the Civil and Administrative Tribunal in relation to collection point arrangement decisions under this Division, which creates a procedural avenue for disputes about EPA decisions to be reviewed under the Administrative Decisions Review Act 1997 (clause 15). Aside from that statutory review mechanism, the Regulation does not record any litigation or judicial interpretation history. Practitioners seeking case law on interpretation, enforcement or challenges should consult tribunal and court databases external to this Regulation, noting that judicial treatment will reflect interplay with the Act and judicial review principles.

Precise wording requirements and syntactic traps. Clause 22B requires the refund wording to be exactly “10c refund at collection depots/points in participating State/Territory of purchase” in clear and legible characters. Suppliers must ensure that labelling uses that precise phrase; deviation risks non-compliance with container approval conditions and potential EPA action under clause 25 or 24. Because the wording is prescriptive, typographical or regional variations may carry enforcement risk.

Definition interactions that change scope. The interaction between clause 3’s definition of “milk” and clause 4’s exclusion of “milk” from Part 5 is important. Clause 3 expressly excludes “flavoured milk” from the definition of milk. Clause 4 excludes “milk” from Part 5. Because flavoured milk is excluded from the definition of milk, flavoured milk is not automatically excluded by clause 4. However clause 5 separately excludes containers designed to contain 1L or more of flavoured milk from Part 5. The net effect is that certain flavoured milk containers are excluded only if they meet the size threshold. Practitioners must not assume “milk excluded” cleans up all dairy or plant-based milk products; the precise definitions in clause 3 and the clause 5 exceptions govern.

Barcode and GTIN uniqueness obligations. Clause 22A requires a GTIN barcode or a product barcode complying with GS1 standards and not duplicating any GTIN or other product barcode, and restricts digit length to 8-13. Suppliers must ensure barcode uniqueness across product ranges; duplication across product classes would violate clause 22A and could be a ground for EPA refusal or revocation of container approval (clauses 23A, 24, 25). This requirement can interact with global supply-chain barcodes, where re-use or reuse of barcodes across packaging variants may create compliance problems.

Opening mechanism prohibition for metal containers. Clause 23A(b) prohibits ring-pull mechanisms or other mechanisms designed or capable of separation from primarily metal containers. Manufacturers that use ring-pulls will need to redesign cans or seek exemption/approval changes before placing containers on the NSW market. Clause 1A of Schedule 2 provides transitional protection for contraventions during the container approval transition period and a specific period for compliance with the ring-pull prohibition (Schedule 2 Part 1, clause 1A(1A)), but those protections are time-limited.

EFT timing obligation and machine counting trigger. Clause 30(2) creates an offence if a collection point operator is required to pay by electronic funds transfer and fails to cause payment within 3 business days after a container is counted by a machine used to count, verify and sort containers. The definition of when machine counting occurs and whether manual counting triggers a similar obligation is consequential. The Regulation ties the timing obligation to machine counting, which implies that operators using manual counting may not trigger the 3-business-day EFT duty, but reliance on that inference should be checked against the Act and EPA guidance and orders. The 3-business-day window creates a cash-flow and systems requirement for operators to reconcile counts and effect transfers promptly.

Bulk-delivery thresholds and “transition period” reference. Clause 31 sets thresholds for bulk deliveries tied to an unspecified “transition period” for the lower threshold of 500 containers. The Regulation does not define “transition period” within clause 31; Schedule 2 contains transitional modifications that affect the application of clause 19 and clause 31 for claims made before certain dates. Practitioners must identify relevant transition definitions in the Act and in Schedule 2 to determine which thresholds apply at a point in time.

Processing refunds and domestic waste exception. Clause 18(2) excludes processing refunds for containers collected during domestic waste management services except where there is either no refund sharing agreement in force and the council notifies the EPA that it is fair and reasonable that no agreement is in force or the council has entered a processing agreement on or after Scheme commencement day, or where a refund sharing agreement exists and the council notifies the EPA that the terms of the agreement are fair and reasonable. This creates a procedural dependence on local council notifications and the existence of appropriate agreements for material recovery facility operators to obtain processing refunds on domestic-waste-collected containers. The Regulation also contains a 12-month carve-out where containers processed within 12 months after Scheme commencement day are not subject to the domestic-waste limitation (clause 18(4)). Material recovery facility operators must track agreements, council notifications and processing dates closely to preserve eligibility.

Processing refund certification and approved person dependency. Claims for processing refunds require an assessment and a declaration by an EPA-approved person certifying correct application of the processing refund protocol (clause 19(2)-(3)). The availability and capacity of approved persons is therefore a bottleneck risk. Material recovery facility operators must arrange for approved persons and ensure timely certification to meet tight quarterly claim windows (clause 19(5)-(6)). Absence of approved persons or delays in certification may prevent claims from being lodged within the 28-day claim window.

Landfill prohibition and consignment knowledge. Clause 20(3) constructs circumstances where a material recovery facility operator is taken to have permitted landfill disposal: if the operator consigns containers to a recycling facility and, at consignment time, knew or ought reasonably to have known the facility was likely to dispose to landfill and the containers were disposed. This creates an evidentiary obligation on operators to ensure their contracted recyclers will legitimately recycle containers and not landfill them. Operators must exercise due diligence when contracting recycling facilities, and maintain records and contractual safeguards.

Recordkeeping exposure and identity document retention. Clause 32 requires collection point operators to keep copies of proof of identity documentation provided by claimants for the purposes of section 43(3)(a) or (b) of the Act. Retention of identity documents creates privacy and data-security obligations. Operators must manage secure storage and disposal of identity documentation in compliance with privacy laws and may need data-protection controls beyond the Regulation’s text.

EPA discretion and potential for inconsistent conditions. The EPA may impose conditions for environmental protection and human health (clause 12(3A)) and may consider a broad range of fit-and-proper matters under clause 9. That discretion, combined with the EPA’s power to determine classes of container approvals on any basis (clause 23(2)), provides latitude that may produce variation in approvals, conditions, and fees across applicants and classes. Applicants should be prepared for case-specific conditions and to justify fit-and-proper criteria with documentary evidence.

Reporting granularity and confidentiality tension. Clause 21 requires the Scheme Coordinator to report operator-level data for certain items while clause 21(1)(i) requires the Scheme Coordinator to describe arrangements to protect confidentiality of commercial information provided by suppliers. There is a tension between operator-level transparency and supplier confidentiality that the Scheme Coordinator must manage. Suppliers should expect operator-level disclosures in reports as specified, unless otherwise protected by confidentiality arrangements referenced in clause 21(1)(i).

Governance and pre-market steps for suppliers and manufacturers

• Ensure container approvals are obtained from the EPA where required and pay application and approval fees as determined by the EPA by Gazette order (clauses 22, 23, 26). Prepare the EPA-approved forms and any supporting documentation requested (clauses 11, 22).
• Conform labelling strictly to the refund-marking requirement by including the exact phrase required by clause 22B. Where designs use small or decorative fonts, verify legibility and placement so the phrase is “clear and legible”.
• Implement barcode strategy consistent with clause 22A: use a GTIN or an EAN/UPC-compliant product barcode that meets GS1 specifications; ensure digit length is between 8 and 13 digits; prevent barcode duplication across product classes; and document barcode assignments to demonstrate compliance if challenged.
• For predominantly metal containers, replace ring-pull opening mechanisms or redesign packaging to comply with clause 23A(b) (unless a transitional exemption applies for the specified transitional period under Schedule 2 Part 1, clause 1A). Plan product design changes early because container approvals can be refused on grounds that containers will not comply (clause 24(d)).

Collection points and network operators

• Apply for collection point arrangement approvals in the EPA’s approved form, provide the information required, pay the application and approval fees and be ready to supply further documents or information if requested (clause 11). Track the EPA’s 42-day decision window and prepare for possible deemed refusal timeframes (clause 12(6)).
• Ensure approvals and collection point arrangements include and meet performance targets for number and hours of operation; network operator agreements must include those targets and a protocol for assessing compliance (clause 9A). Use Schedule 1 community access principles when planning network roll-out and opening hours to align with Ministerial expectations.
• Maintain the records required under clause 32 for each collection point: counts of containers claimed, number of claims, refund declarations requested and provided, and copies of proof of identity documentation where claims trigger section 43(3) obligations. Establish secure systems for retention and disposal of identity documents consistent with privacy obligations.
• Prepare operational rules and staff training protocols so that contaminated, damaged or unreadable containers are rejected consistently with clause 29(2). If operating in a designated area specified in clause 29(6), implement material checks to ensure primarily acceptable materials like PET, HDPE, steel or aluminium are accepted where required and glass rules are followed for Taronga Zoo.

Payment mechanics and technology

• Implement refunds payment systems capable of paying by electronic funds transfer within 3 business days after machine counting when EFT is the required method (clause 30(2)). Confirm reverse vending machines and counting machines meet the definition of the counting mechanism that triggers the 3-business-day rule and reconcile back-office settlement processes to avoid offences.
• If using coupons or rewards schemes, ensure the redeemable value is calculated and documented in case of audit, because clause 6 treats the redeemable value under a rewards scheme or coupon as the equivalent of 10 cents. Maintain evidence of scheme rules, redemption values and customer-facing terms.

Processing refunds and recycling chain due diligence

• Material recovery facility operators must ensure they comply with eligibility rules in clause 18: do not claim for containers obtained before the Scheme commencement day, and secure appropriate refund-sharing or processing agreements or council notifications if containers were collected as domestic waste (clause 18(2)). Keep copies of any refunds-sharing agreements, processing agreements and council notifications to demonstrate entitlement.
• Arrange for an EPA-approved person to assess claims and sign the declaration certifying correct application of the processing refund protocol before lodgement with the Scheme Coordinator (clause 19(2)-(3)). Build contractual relationships and scheduling with approved persons to ensure timely certification within the quarterly claim windows.
• Do not consign containers to recycling facilities unless you have reasonable grounds to believe the facility will recycle and not landfill them; the Regulation treats consignment with knowledge that landfill is likely as permitting disposal and prohibits claiming refunds on such containers (clause 20(3)). Use contractual warranties, audit rights and chain-of-custody documentation with recycling facility operators and retain transport, consignment and processing records.

Contract and council negotiation

• If you are a material recovery facility operator relying on containers collected under domestic waste services, negotiate refund-sharing agreements or processing agreements with local councils, and obtain council written notifications that the terms of any refund-sharing agreement are fair and reasonable, or that it is fair and reasonable that no refund-sharing agreement is in force (clause 18(2)). Retain copies of those notifications and agreements for claim and audit evidence.
• Where EPA approval conditions or local consents are required, secure necessary development consents under the Environmental Planning and Assessment Act 1979 or local council approvals under the Local Government Act 1993 as the EPA may require evidence of these when considering collection point arrangements (clause 12(2)(c)).

Administrative compliance and dispute readiness

• Be prepared to respond to EPA requests for further documents or information during application and variation processes (clauses 11(2), 13(4)). Track timelines for deemed refusals and arrange to seek administrative review to the Civil and Administrative Tribunal where appropriate (clause 15).
• Ensure fit-and-proper evidence is available for applicants for Scheme administration agreements and be ready to demonstrate good repute, financial capacity, experience and absence of recent insolvency, control or fraud offences,or to show mitigating factors if past contraventions exist (clause 9).
• Maintain an internal compliance register to track contract expiries, approval anniversaries and payment of approval fees, as failure to pay approval fees is a ground for suspension or revocation and fees remain payable even during suspension (clauses 14(1)(c), 26(3)).

Reporting and transparency obligations

• Expect the Scheme Coordinator to require and publish operator- and network-level data as described in clause 21. Prepare to supply requested data in the format needed for aggregate and itemised reporting (clause 21(2)). If supplying commercially sensitive information, engage with the Scheme Coordinator about confidentiality protection arrangements referenced in clause 21(1)(i).
• Implement incident-reporting and risk-management processes for false claims and safety incidents so that you can supply required information if the Scheme Coordinator requests or reports on such matters (clause 21(1)(k)-(m)).

Contracts, audits and record retention

• Keep auditable records of container counts, claims, contracts with recyclers and transporters, proof of identity for bulk deliveries, and copies of EPA-issued approvals and notices. Clause 32 prescribes specific records to be kept at collection points, and clause 19 requires documentation and approved-person declarations for processing refund claims. Retain records for periods consistent with the Act’s audit and review cycles and allow for tribunal or EPA review.

Stay current on delegated instruments

• Monitor EPA Gazette orders for fees, payment methods and other determinations (clauses 8, 16, 22, 26, 30(1)(d)). The Regulation delegates material procedural and financial decisions to the EPA by Gazette order; those orders change the practical costs and processes implementing the Regulation.

Transitional compliance check

• Check Schedule 2 savings and transitional provisions to determine whether particular restrictions or offences are deferred for a specified period, especially where clause 1A provides transitional protection for contraventions of prescribed approval conditions during the container approval transition period. Ensure actions taken during a transitional window are documented to rely on the transitional protection if later scrutinised.

Administrative review and escalation

• If the EPA refuses a container or collection point approval, or imposes conditions, note that the EPA must provide written reasons and refund approval fees when refusing a collection point arrangement application (clause 12(4)-(5)). Consider administrative review rights under clause 15 and the Administrative Decisions Review Act 1997, and ensure all appeals are lodged within applicable timeframes.

This compliance checklist is drawn from the Regulation’s operative provisions and identifies concrete organisational, technical and contractual steps to meet statutory obligations. For precise operational implementation or enforcement risk assessment at a point in time, consult the consolidated Regulation on the NSW legislation website and any EPA Gazette determinations currently in force.