The Albanese Government has launched Australia’s first national Environmentally Sustainable Procurement Policy, with the textile industry being phased into the policy next year.
From July 1 this year, businesses bidding for government construction services projects above $7.5 million must meet agreed sustainability outcomes. These could include cutting or repurposing waste and replacing single-use materials with recycled materials.
The policy will then extend to tenders for textiles, information and communication technology (ICT) goods, and furniture, fittings and equipment above $1 million from July 1, 2025. It may include requirements to recover and recycle worn out uniforms that can be processed into new materials.
According to the Department of Climate Change, Energy, the Environment and Water (DCCEEW), the project categories were chosen for their high impacts on nature and their potential in providing work for Australia’s domestic recycling industry.
The new procurement policy also establishes a measurement and reporting framework to track environmental outcomes. The project categories have verification measures in place. About 60 per cent of Australian Government suppliers already collect sustainability data for their products.
The launch of the new policy comes as the government's Circular Economy Ministerial Advisory Group - chaired by Monash University Professor John Thwaites AM - released an interim report recommending ways the government can boost the country’s domestic manufacturing capabilities through reuse, repair and recycling.
The Advisory Group was launched last year by the Minister for the Environment and Water Tanya Plibersek.
Recommendations from the report include launching a Productivity Commission Inquiry to investigate how resource efficiency supports economic growth; developing a National Circular Economy Framework and a power to set specific circularity standards for products and materials; introducing a national ‘recycled content first’ policy to drive recycled content markets; and setting up sector-based circular economy targets and embed circular economy principles in key climate policies.
Plibersek said the Albanese Government is leading a national transition to a circular economy and that the new report clearly shows opportunities for Australia - including boosting domestic manufacturing capabilities.
“This [policy] will deliver a future remade in Australia, creating opportunities and demand for goods to be recycled and remanufactured right here,” Plibersek said. “It’s a win for business, and a win for the environment.
“Our national procurement policy will cut waste to landfill, help boost recycling and reduce emissions – all while supporting good, local jobs.
“Just as many Australians look for recycled content or environmentally friendly products at the supermarket, the Australian Government will use our purchasing power to back cleaner, smarter, more environmentally sustainable businesses.
“We’re giving business the confidence to invest in products that support a circular economy, without the green tape. This is important work that will help leave nature better off for our kids and grandkids.”
The team at Australia's incoming clothing product stewardship scheme Seamless welcomed the new policy in a social media post.
"Government procurement is a powerful lever for change," the post read. "Seamless applauds Minister Tanya Plibersek's announcement of Australia’s first national Environmentally Sustainable Procurement Policy; which aligns with expert advice and our roadmap to clothing circularity.
"The policy includes textiles tenders above $1 million from 1 July 2025; identifying the economic potential to advance Australia's domestic recycling industry.
"Along with our leading brands, foundation members and industry supporters, Seamless is set to help advance the interim report recommendations from the Circular Economy Ministerial Advisory Group, specifically standards and circularity targets for clothing products and materials."
The latest news comes weeks after Prime Minister Anthony Albanese announced the creation of a Future Made in Australia Act to enhance local manufacturing in Australia across industries.