NSW’s New Food Waste Rules Are Coming – Here’s What Your Business Needs to Know

*updated on the 17th of February to reflect the first reading date of July 1, 2026

A bill is before the parliment to mandate organic food collection for businesses in New South Wales from July 1, 2026, and residential collection by 2030. While the mandate has not yet been passed into legislation the July 1st start date means organisations that will likely be impacted should start the process now.

The mandate is a key component of the NSW Government’s goal to reduce food waste by 50% by 2030 under the Waste and Sustainable Materials Strategy 2041. The new Commercial Food Organics (COFO) mandate is a significant step in cutting landfill waste and emissions, requiring many organisations to rethink their daily food waste management practices.

Who Needs to Act?

The new rules will apply to large food waste generators, including:

• Supermarkets with floor areas over 1,000m²
• Institutions such as hospitals, aged care facilities, correctional facilities, childcare centres, and universities
• Hospitality venues including hotels, motels, food courts, and registered clubs

The mandate will be rolled out in stages, with compliance based on a business’s residual waste bin capacity (the back-of-house landfill bin). Supermarkets are the exception, measured by floor space.

Mandated collection start dates:

• July 1, 2026 – Premises with ≥3,800L of residual waste bin capacity
• July 1, 2028 – Premises with ≥1,900L of residual waste bin capacity
• July 1, 2030 – Premises with ≥660L of residual waste bin capacity

For building complexes, the responsibility falls on the property manager, not individual tenants.

Why Does This Matter?

Food waste is a major issue in Australia. Each year, 7.6 million tonnes of food waste ends up in landfill, contributing significantly to greenhouse gas emissions. The NSW Government aims to tackle this problem by requiring businesses to separate food waste for processing, whether through composting, anaerobic digestion, or other sustainable methods.

Beyond compliance, a well-designed food waste system can:

• Improve operational efficiency
• Help businesses meet sustainability goals
• Reduce waste disposal costs

How to Prepare

Adapting to the new mandate doesn’t have to be complicated.

• If you already have a Method System in place, check with your waste provider to see if they offer an organics collection service. If they do, get in touch with our team to add organics bins to your setup and update signage for a smooth transition.
• If your waste program isn’t optimised yet, this is a great opportunity to future-proof your business. Waste regulations and landfill costs will continue to increase, so taking action now can save money in the long run.

Special Offer: Throughout February and March 2025, we’re offering 10% off bins when you purchase signage.

For additional insights, download our Successful Recycling Guide, filled with practical tips to help you minimise waste in the workplace.

Get COFO-Ready

Ready to future-proof your waste system? Let’s chat about how we can help your business get COFO-ready.