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Container Deposit Scheme

Container Deposit Scheme

The Container Deposit Scheme - Overview

The Container Deposit Scheme (CDS), often called "cash for containers" or "Containers for Change", is being expanded across Australia to include wine and spirit bottles, requiring winemakers to take product stewardship responsibility for their packaging. While Queensland already includes these, major changes are coming for South Australia, New South Wales, and Western Australia between 2026 and 2027. 

Here is an explanation of the scheme from a winemaker’s perspective:

How the CDS Works for Winemakers

  1. Mandatory Registration: Winemakers (as "first responsible suppliers") must register their containers with the relevant state Scheme Coordinator.
  2. Labelling Requirements: Bottles must bear the "10c refund at collection points" mark and a barcode.
  3. Payment Mechanism: Producers pay a fee to the Scheme Coordinator per container sold. This fee covers the 10-cent refund, logistics, and administration.
  4. Reporting & Compliance: Wineries must submit regular (often quarterly) sales reports to the scheme coordinator, detailing how many eligible containers were sold in that state. 

Key Timelines

  • QLD: In effect since 1 November 2023 - if you are selling wine in QLD, this is what you need to do -
    • By 1 November 2023:
      • Register their organisation as a Beverage Manufacturer with COEX
      • Execute a Container Recovery Agreement (CRA) with COEX
      • Register their eligible beverage products with COEX (each must have a barcode)
    • By 1 January 2027:
      • Include a refund mark on the labels of containers
  • Western Australia: Expands to include wine/spirit bottles on 1 July 2026.
  • SA, NSW, & NT: Expanding to include wine/spirit bottles (up to 3 litres) by mid-to-late 2027.
  • Scope: Includes wine bottles, spirit bottles, and potentially casks (plastic bladders in boxes). 

Financial and Administrative Impact

  • Cost Per Bottle: The inclusion is expected to add roughly 13 to 20 cents per bottle in fees and administrative costs for producers.
  • Labelling Changes: Producers must redesign and print new labels to meet compliance, a significant cost for small to medium-sized wineries.
  • Small Producer Burden: Industry bodies warn that the administrative load is high for smaller producers who do not have complex automated reporting systems.
  • No "Pass On" Ability: Industry reports indicate that in a competitive retail environment, it is difficult for wineries to pass the extra costs to consumers. 

Industry Response

  • Opposition: Australian Grape & Wine has expressed "deep disappointment," arguing that wine bottles make up a negligible amount of the litter stream (less than 0.2%) and that the scheme adds high costs during a time of financial strain.
  • Concerns: Wine industry bodies are lobbying for a national, uniform scheme, rather than individual state-based systems, to avoid duplication of administrative burdens.
  • Call for Thresholds: Industry is seeking exemptions or high-volume thresholds for very small producers. 

Current Status (April 2026)

While the expansion is finalized, the wine industry continues to advocate for low-cost, simplified compliance during the transition, particularly for smaller operations. 

GR42 A21
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