Container deposits

Much has changed since the start of the CDS in 1977, including in terms of types of containers, consumer choices, technology, and markets for recycled materials. It is therefore important to look for opportunities to improve the CDS in a modern context, both in terms of its role in recycling, and in litter reduction. This includes considering lessons learned by other CDS jurisdictions in Australia and across the world.

Improving South Australia’s recycling makes cents!

During January–March 2019, South Australians were invited to provide feedback on the scoping paper, Improving South Australia’s Recycling Makes Cents. The paper and summary launched the public conversation about opportunities to improve the state’s CDS.

CDS Review Reference Group

The CDS Review Reference Group was formed to represent the range of interests within the CDS – collection depots, super collectors, manufacturers, retailers, waste industry associations, non-government organisations and community groups. Its purpose is to provide advice to the government about key issues and opportunities, provide data and information to inform evidence based decision making, and assist in evaluating options and support implementation of improvements.

The first meeting was held on 15 February 2019 to provide information to key stakeholders about the review and to workshop key issues and opportunities.

• 1st Stakeholder Reference Group meeting presentation, 10 April 2019

The second meeting was held on 10 April 2019 and invited comment on how the issues discussed in the scoping paper should be addressed, as well as discussing specific issues around governance of the CDS. 

• 2nd Stakeholder Reference Group meeting presentation, 15 February 2019

The third meeting was held on 5 September 2019 and invited comment on the key issues proposed for inclusion in the CDS Review discussion paper, as well as exploring engagement opportunities for the CDS Review. 

• 3rd Stakeholder Reference Group meeting presentation, 5 September 2019

EPA Board CDS Summit

The EPA Board hosted a CDS Summit on 21 May 2019 where key issues relating to governance were explored.

The Summit was informed by 2 expert panels. The first, NSW and QLD government representatives, spoke on their recently commenced CDS in NSW and QLD respectively followed by Q and A.

• Experiences from Queensland’s Container Refund Scheme
• NSW Return & Earn governance arrangements

The second panel comprised 4 members of the SA CDS Review Reference Group representing the views of local government, NGOs, collection depots, super collectors, retailers and manufacturers.

There was broad support from participants for a review of the SA CDS to realise opportunities in the following areas:

• Increase the contribution of CDS to resource recovery and a circular economy.
• Continue to achieve the CDS’s litter reduction objective.
• Further embed product stewardship obligations.
• Build on the unique historic attributes of the SA CDS that have helped establish and maintain its enduring success.
• Build on community support and participation in the scheme.
• Maintain SA’s reputation as a world leader in resource recovery.

Participants acknowledged the value of experiences with container refund schemes in other jurisdictions, noted opportunities for national harmonisation for some elements, and agreed on the importance of continued conversation with industry and community.

Scoping Paper Consultation Summary Report

As part of the CDS Review currently being undertaken, a consultation summary report has been released.

The report outlines the responses that were gathered during consultation on the scoping paper. Over 1,000 responses were received from the online survey and 99 written submissions were also received as a result of the public consultation.

The responses received as a result of the consultation are being used to develop a discussion paper on how we can build on the success of the container deposit scheme in South Australia. The release of the discussion paper and further public consultation is planned for early 2020.

Next steps

The Government is committed to continued conversation with industry and community.

Further analysis is being undertaken to build on the information received during the review so far, and will inform which reforms are to be further considered in the review and presented in a discussion paper.

The discussion paper and associated broad public consultation will provide stakeholders and the broader community opportunity to inform the review.

The results of the consultation process will be used to inform decisions by government on how to improve CDS, including any legislative change.

Share your feedback

If you have any feedback about CDS or the CDS Review please use this form to contact us.

According to the Keep South Australia Beautiful (KESAB) CDL Containers and Plastic Shopping Bags in the Litter Stream Report 2018, beverage container litter currently represents only 2.8% of litter items in South Australia. This result is the same as the NT which recorded 2.8%. About 6.2% of Queensland's litter was beverage containers with 6.5% in Victoria, 8.2% in NSW and 14.7% in Western Australia.

Percentage of CDL items in the litter stream for NT, SA, QLD, Vic, NSW and WA

State/Territory	2008–09	2009–10	2010–11	2011–12	2012–13	2013–14	2014–15	2015–16	2016–17	2017–18
NT	3.2%	4.3%	5.3%	4.1%	2.1%	2.1%	2.0%	2.8%	2.6%	2.8%
SA	2.7%	2.2%	1.9%	2.2%	2.1%	1.9%	2.0%	2.9%	3.0%	2.8%
QLD	5.3%	4.2%	5.0%	4.7%	4.80%	5.8%	5.5%	5.7%	6.6%	6.2%
VIC	4.3%	7.1%	6.9%	7.0%	7.8%	8.1%	7.1%	7.4%	7.5%	6.5%
NSW	6.1%	7.1%	6.9%	7.5%	8.0%	8.5%	8.7%	8.7%	9.6%	8.2%
WA	10.2%	9.7%	11.0%	13.2%	12.8%	13.9%	14.6%	13.0%	15.8%	14.7%

KESAB CDL containers and plastic shopping bags in the litter stream report 2018

South Australia leads the nation in the recovery, recycling and litter reduction of beverage containers with a current, overall return rate of 76.4%.

The EPA uses the term 'return rate' to determine how the container deposit scheme is performing. Return rates are calculated based on industry data on the number of eligible beverage containers sold in South Australia, against the number of those containers returned for a refund. This data is provided to the EPA according to beverage container material types.

The overall return rate for beverage containers in South Australia in 2018–19 was 76.4%. Over 612 million containers (41,372 tonnes) were returned for a refund and recycling. This means more than $61 million was refunded to the South Australian community during the last financial year.

Glass beverage containers included in South Australia’s container deposit scheme include those used for beer, cider and soft drinks. The scheme does not currently include glass bottles used for wine or spirits.

In South Australia, the glass is usually sorted at the collection depot into clear, green and amber (brown) colours ready for recycling into new products. South Australia’s glass cullet is considered the highest quality and value, due to the colour sorting undertaken at depots. New products made from the recycled beverage glass include new glass bottles and jars, and a sand substitute in concrete.

In 2018–19, the return and rate for glass beverage containers was 83.4%. Approximately 33,064 tonnes of glass beverage containers were returned for a refund and recycling.

Aluminium beverage containers included in South Australia’s container deposit scheme are used for a wide range of alcoholic and soft (non-alcoholic) drinks. 

Aluminium cans recovered for recycling go through a smelting process, where the aluminium is made into ingots and sold to manufacturers of aluminium products to become outdoor furniture, screen doors and window frames for houses, along with bike and car parts. A large percentage of recycled aluminium is also used to make new aluminium beverage cans

In 2018–19, the return rate for aluminium beverage containers in South Australia was 82.9%. Approximately 3,805 tonnes of aluminium beverage containers were returned for a refund and recycling.

Polyethylene terephthalate (PET) beverage containers included in South Australia’s container deposit scheme are mostly for soft (non-alcoholic) drinks. 

PET containers recovered for recycling are sent to processing factories where the plastic is shredded, washed and formed into pellets or powder ready for remaking into new plastic products. PET can be recycled into a range of products, including textiles for clothing and furniture, and road stabilising material. Recycled PET can also be used in the making of new PET bottles

In 2018–19, the return rate for PET containers was 68%. Approximately 3,719 tonnes of PET beverage containers were returned for a refund and recycling.

High density polyethylene (HDPE) beverage containers included in South Australia’s container deposit scheme are mostly used for fruit juice and flavoured milk drinks.

HDPE containers recovered for recycling are sent to processing factories where the plastic is shredded, washed and formed into pellets or powder ready for remaking into new plastic products. HDPE can be recycled into a range of products, including detergent bottles, compost and garbage bins, and agricultural and irrigation pipes.

In 2018–19, the return rate for HDPE/mixed beverage containers was 64.1%. Approximately 258 tonnes of HDPE/mixed plastics were returned for a refund and recycling.

Liquid paperboard (LPB) beverage cartons included in South Australia’s container deposit scheme are used for fruit juice, fruit juice drinks and flavoured milks. 

LPB containers recovered for recycling sent to processing factories where the LPB is recycled into high quality products, such as whiter office paper suitable for printers and copiers (source: Zero Waste SA).

In 2018–19, the return rate for LPB beverage containers was 49.1%. Approximately 524 tonnes of LPB were returned for a refund and recycling.

The container deposit scheme in South Australia is so successful that in 2006 it was awarded the status of State Heritage Icon.

The BankSA Heritage Icons list records, recognises and protects items that have made a significant contribution to South Australia’s cultural identity.

The award citation:

South Australia was the first … Australian state or territory to have Container Deposit Legislation and it enjoys wide public support. It’s a self-cleansing, self-policing system that has greatly contributed to South Australia’s reputation, an increasingly valuable tourism asset, as Australia’s cleanest state.  For that contribution to our living heritage the bottle and can deposit legislation is elevated, onto the pedestal and into the spotlight, as a BankSA Heritage Icon.

South Australia’s container deposit legislation is contained within Part 8 Division 2 of the Environment Protection Act 1993. The EPA is the regulator of the scheme and ensures that the refund is made available for the person returning the empty container to the collection depot and that the empty containers are collected for recycling or reuse. However, the EPA has no direct involvement in the collection of the deposits or the recycling of the material which is the responsibility of industry.

Prior to the introduction of the Beverage Container Act in 1975, South Australia already had a history of recycling beverage containers dating as far back as the late 1800s with local beer and soft drink manufacturers practising their own form of voluntary recycling and return in order to recover and refill their refillable bottles such as the pickaxe beer bottles.

South Australian consumers returned soft drink bottles to retailers and beer bottles to 'marine stores' for a refund amount that was set and managed by industry. Marine stores were originally established by the Adelaide Bottle Company to collect, wash and re-hire the glass bottles for refilling by local breweries, such as the South Australia Brewing Company and Coopers Brewery.

The introduction (and increasing popularity) of single-trip (non-refillable) beverage containers in the 1970s meant that the new containers could not be used again and were of no further use to them once sold. Beverage manufacturers ignored any type of return system for the new containers with the result that ‘single trip’ beverage containers soon became a highly visible part of the litter stream and a potential threat to the environment.

Oregon, USA passed the first bottle bill (also known as a deposit law) in 1971, requiring refundable deposits on all beer and soft drink containers. It was this piece of legislation that would provide the springboard for South Australia’s own ‘bottle bill’.

Based on the ‘polluter pays’ principle and reinforcing the existing return systems previously established by industry for its refillable containers, the South Australian Parliament passed the Beverage Container Act 1975, which commenced operation in January 1977.

Read the story in the Canberra Times.

There have been a number of significant changes to the container deposit scheme since its inception largely relating to the types of beverages/containers covered. In 2008 the refund amount increased from 5 to 10 cents. This led to more South Australians participating, resulting in less litter on our streets and less waste sent to landfill.

The collection depot system as we know it today was built upon the foundation of an already recognised network of licensed ‘marines stores’ which existed to encourage the return of the refillable beer bottles used by local brewers.

The large network of original marine stores formed the basis of the new ‘can’ depot network when the beverage container legislation commenced. The new legislation, introduced in 1977, only applied to single-use steel cans (the only non-refillable beverage containers being used at the time) and many marine store dealers agreed to sign up as can depots to collect containers (and the associated handling fees) covered by the new legislation.

Meanwhile, containers not covered by the legislation such as refillable glass soft drink bottles and refillable beer bottles continued to be returned to retailers (soft drink) and marine stores (beer) for refund amounts set and managed by industry.

As time went by, the container deposit scheme has expanded to include more container types and a larger number of depots. There are currently over 132 approved depots throughout South Australia metropolitan and regional centres.

Many collection depots have expanded their operations to recover other items for recycling, such as scrap metal, e-waste, cardboard, non-deposit glass, etc. It is estimated that the collection depot industry now employs around 1,000 people throughtout South Australia.

For 35 years, South Australia remained the only jurisdiction in Australia with a container deposit scheme (CDS), until January 2012, when the Northern Territory Government introduced its own scheme. The Northern Territory CDS is based very closely on the SA model, with a 10-cent refund and it covers identical products to that in South Australia. SA’s CDS is contained within the Environment Protection Act 1993, and remains a highly successful environmental program focussed on beverage container litter reduction, resource recovery and diversion from landfill.

In February 2015, the New South Wales Government announced its commitment to introduce a cost-effective container deposit scheme (CDS). On 8 May 2016 after extensive community and industry consultation it confirmed a CDS would commence in NSW.

The scheme started on 1 December 2017. Most beverage containers between 150 ml and 3 litres will able to be returned for a 10-cent refund. A network of depots and reverse vending machines will open across NSW to receive the empty containers.

For more information visit the NSW EPA website and media release

Following a feasibility investigation, the Queensland Government commenced a container refund scheme on 1 November 2018, to tackle litter and plastic pollution and improve recycling.

For more information go to the QLD EPA website

The ACT container deposit scheme (CDS) commenced 30 June 2018. Consumers are now able to return eligible beverage containers to designated drop-off points and receive a 10 cent refund for each container.

For more information go to ACT CDS.

The Western Australian Government has committed to implementing a container deposit scheme in 2020. Further details will be available at the Department of Environment and Environmental Regulation website.