---
title: Levy on Plastic Packaging Revived Following Oil Crisis
description: Australia is considering a levy on packaging material following the global oil shocks. The crisis has been triggered by the Iran war and exposed supply-chain weaknesses in packaging.
image: https://news.mtflogistics.com.au/hubfs/oil2.jpg
---

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# Levy on Plastic Packaging Revived Following Oil Crisis

![Daniel](https://app.hubspot.com/settings/avatar/d41d8cd98f00b204e9800998ecf8427e)

 Daniel

April 7, 2026

![oil](https://442310841.fs1.hubspotusercontent-ap1.net/hub/442310841/hubfs/oil.jpg?width=1200&length=1200&name=oil.jpg)

Australia is considering a levy on packaging material following the global oil shocks. The crisis has been triggered by the Iran war and exposed supply-chain weaknesses in packaging.

The proposed levy and associated penalties for failure to recycle are intended to reduce Australia's reliance on imported packaging, especially oil-reliant plastics. It will also fund the collection and processing of recyclable products.

Environmental stakeholders have pushed for rules on the minimum amount of recycled products in packaging since 2023. Plastic recycling rates have remained stagnant at 12.5% since reporting started a decade ago.

Gayle Sloan, chief executive of Waste Management and Resource Recovery Association, points to how the conflict in the Middle East has exposed the vulnerability of product, food, and retail packaging to global shocks. Building a strong domestic recycled materials market is essential to enhance resilience and create jobs.

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