NSW businesses struggling with surging costs are facing another hit under the Minns Labor Government’s confused reusable coffee cup Bill.
Labor’s Environmental Legislation Amendment (Plastic Reduction and Container Recycling) Bill 2026 states that cafés and takeaway hospitality businesses are required to implement reusable takeaway cup schemes.
While a staged approach has been foreshadowed it is unclear who will be required to fully comply with the scheme by 2030.
Tanya Davies MP, Member for Badgerys Creek said cafés and small businesses in Badgerys Creek were already under enormous pressure from rising rents, insurance premiums, energy bills and workforce shortages.
“Badgerys Creek businesses are struggling and the last thing they need is the Minns Labor Government introducing unworkable red tape.”
“A café selling around 300 coffees per day would need to manage thousands of reusable cups in circulation, without being able to increase prices to cover the costs.”
Shadow Minister for Small Business Gurmesh Singh said under the plan cafés will also be legally prohibited from charging customers for the cost of supplying those cups.
“As the legislation is drafted a café owner would be forced to absorb the cost purchasing, managing, cleaning and storing reusable cups, with no guarantee they will ever be returned,” Mr Singh said.
Shadow Minister for the Environment Jacqui Munro criticised the lack of consultation, saying industry stakeholders were blindsided by the proposal.
“Labor is trying to rush through confused reform without engaging the very businesses expected to implement it. There is no clarity about who has to do what, by when,” Ms Munro said.
“We all want to reduce plastic waste, but this reform must be workable. Right now, this proposal simply isn’t, and coffee lovers and small businesses will pay the price.”
The NSW Liberals and Nationals are calling on the Government to abandon the scheme in its proposed form and undertake genuine consultation with the hospitality sector.