Rahul Somvanshi
Australia is working to expand its domestic plastic recycling capacity. One of its significant soft plastics recycling businesses has now entered voluntary administration. Recycling Plastics Australia (RPA), based in Kilburn, South Australia, entered voluntary administration on August 31, 2026.
The company appointed Tim Mableson and Edward “Ned” Swifte of KPMG as voluntary administrators. Their first creditors’ meeting is scheduled for September 10. The decision affects around 60 employees and raises questions about recycling capacity at a time when Australia is working to keep more plastic waste domestically rather than exporting it.
What happened at RPA involves more than a simple business failure. The company’s directors identified the insolvency of a major supplier as a significant contributing factor. But the broader context involves Australia’s investment in domestic recycling infrastructure.
The Australian Government and South Australian Government jointly announced a $40 million soft plastics recycling project in July 2024, with the Commonwealth contributing $20 million through the Recycling Modernisation Fund. The project was publicly described as capable of diverting more than 14,000 tonnes of soft plastics from South Australian landfills annually. The original projected completion date was May 1, 2026.
That completion date carries significance. The project had a planned completion milestone in May 2026. It is not clear from available public information whether the facility had reached its planned operating capacity before entering administration. The timing between the expected completion date and the August 31 administration warrants examination, though the administration itself resulted from the supplier insolvency.
RPA’s sorting process involved identifying plastic by type and colour before recycling. The company held a plastic-waste export licence covering the period from October 1, 2025 to September 30, 2028. Holding this licence did not establish that RPA engaged in actual plastic exports.
Australia has set restrictions on plastic waste exports. The government has stated that plastics and packaging matter to food security, backing this up with over $200 million invested across recycling infrastructure programs. Yet packaging reform remains uncertain—the government confirmed it will not introduce a new Commonwealth packaging scheme during the current term.
The administrators will now determine RPA’s future. Whether the company restructures, is sold, or closes entirely, the immediate concern involves what happens to the recycling capacity Australia invested in. With 60 jobs affected and a specialized facility now under administration, this development affects Australia’s domestic recycling infrastructure.
