The Productivity Commission has released its interim report on unlocking the opportunities from Australia’s circular economy. We’re sharing the key report findings for clothing and textiles and asking for your feedback as part of our response to the Commission, so don’t miss this opportunity to have your say.
Earlier this month, the Productivity Commission released its interim report, ‘Australia’s circular economy: Unlocking the opportunities’. The report notes that Australia’s progress towards a circular economy has been slow, with materials productivity, circularity rate (that is, the proportion of non-virgin or recycled materials used, compared to materials used overall) and resource recovery rate increasing marginally over the past decade. Australia’s circularity rate of 4.6% was half the global average, which reinforces the need for the Federal Government’s targets outlined in Australia’s Circular Economy Framework to ensure we reach our circularity potential.
Have your say
Seamless is submitting a comprehensive response to the interim report – it’s an opportunity to help reshape our industry and embrace a future that supports innovation from the outset, rewards sustainable business models and enables national recirculation of valuable materials that deliver better environmental, social and economic outcomes.
To play your part, please complete our short survey by 5:00pm AEST on Monday 7 April.
It will only take a few minutes of your time, and everyone is welcome to provide their feedback – you don’t need to be a Seamless member or supporter. The information you provide will be aggregated and included in our response to the Commission.
Here are some of the key findings and insights from the Productivity Commission's interim report:
Barriers to clothing circularity
The section of the report which focuses on clothing and textiles effectively summarises and synthesises the valuable information and submissions provided to the Commission. With Australia being the highest per-capita consumer of clothing globally, the report outlines barriers to clothing circularity and industry collaboration which include:
- The increase in “fast fashion” and the perception that clothing is disposable
- A lack of relevant, reliable information on clothing quality, composition and sustainability data
- That textile product stewardship schemes have only recently been implemented in Australia and participation is voluntary
Importantly, opportunities and policy interventions to address these barriers are currently being explored.
The role of product stewardship
The Australian Government plays a significant role in providing national leadership and co-ordinating product stewardship schemes. The report recaps the three product stewardship models provided for in the ‘Recycling and Waste Reduction Act 2020(Cth)’, which are: industry-led voluntary schemes; co-regulatory arrangements between industry and government; and mandatory schemes.
The report also acknowledges international best practice with mandatory Extended Producer Responsibility (EPR) schemes in France and the Netherlands achieving outcomes such as higher textile collection and recycling rates.
Seamless, Australia’s clothing product stewardship scheme, is an industry-led, voluntary initiative which commenced operations on 1 July 2024. With the Federal Government already committing funding to Seamless and signalling its willingness to regulate, the industry must prepare for a future where all clothing brands take responsibility for the entire life of the products they place on the Australian market. The whole industry must prepare to contribute proportionally to driving circularity and diverting clothes from landfill, not just the few responsible brands leading the charge.
“Regulation is the best solution for ensuring high levels of industry investment and participation.” - Product Stewardship Centre of Excellence.
Alignment with Seamless priorities and workplan
The opportunities and policy interventions outlined in the report largely align with the Seamless strategic priorities, which are citizen behaviour change, circular design, circular business models and closing the loop through reuse and recycling. As part of our workplan, we’re actively progressing some of the opportunities identified:
1. Enhanced co-ordination and collaboration
The Seamless State and Territory Government roundtable effectively fosters connection and co-ordination on policy, programs and investment to divert clothing from landfill. At the Federal Government level, Seamless has provided input into the Recycling and Waste Reduction Act 2020 (RAWR Act) review, as well as the Environmentally Sustainable Procurement Policy which will apply to clothing and textiles from 1 July 2025.
2. Improved data reporting and standard definitions
Seamless working groups have been established with experts from across the clothing industry coming together to collaborate on topics including eco-modulation, and a standard taxonomy of terms. Establishing common language and reporting for the Australian clothing sector underpins improved awareness, data collection and contribution to national indicators which measure circular economy progress, and support decision-making and investment strategies. These initiatives will also support in raising citizen awareness and better circular product design.
The Productivity Commission's interim report lays a strong foundation for advancing Australia’s circular economy agenda, with a focus on aligning the efforts of industry and government, and taking a collaborative co-ordinated national approach through product stewardship. Seamless is driving Australia’s transition to a circular textile economy, where brands, industry, communities, and governments collaborate to choose, enjoy and recycle clothing more responsibly.
Don’t forget to have your say and complete our short survey by 5:00pm AEST on Monday 7 April.
