The NSW Government has backflipped on controversial ‘keep cup’ requriements that would have seen a server who did not offer a customer a reusable coffee cup fined $22,000. In a rare win for common sense the reusable cup requirements of the Plastic Reduction law will be scrapped after the election.
The Environmental Legislation Amendment (Plastic Reduction and Container Recycling) Bill 2026 was first introduced in March 2026 to little fanfare. A broad bit of legislation similar to those send in other States and Territories the Bill was rushed in June 2026 and passed on Friday 23 October 2026, before receiving assent on Wednesday 28 October 2026.
The passage of the Bill last week resulted in the spotlight turning on the most absurd element of the legislation; the unworkable and chaotic reusable cup requriements. The media storm that ensued including the iconic ‘Nup’ to the Cup front page of the Daily Telegraph;
The backlash, and clear practical issues with the real world operation of the law resulted in the NSW Government agreeing to walk back the requriements, that were due to commence in 2028, after the upcoming NSW election. The opposition NSW Liberals are pushing to remove the law without delay;
Yesterday Premier Chris Minns defended his reusable coffee cup mandate, saying it was good policy with bad messaging. Less than 24 hours later, Environment Minister Penny Sharpe said Labor would reverse the laws after the March 2027 election.
This red tape confusion comes at a time of record business insolvencies and mum and dad businesses struggling to absorb the costs of rising interest rates, changes to credit card surcharges, and spiralling fuel costs.
That is why the NSW Nationals will introduce a Bill to immediately repeal Labor’s reusable coffee cup mandate in the next Parliamentary sitting week to ensure these unnecessary laws are removed now, and not after the election.
NSW Nationals Leader and Shadow Minister for Small Business Gurmesh Singh said it is great to see the Minister has reconsidered her position after months of pressure.
“We now have an extraordinary situation where Labor has made a commitment to repeal their own legislation next year if they win the election,” Mr Singh said.
“Businesses can’t wait that long. They’ve had enough of pointless government intervention and red tape. We will bring our Repeal Bill to Parliament next month to give business owners the certainty they need and deserve.”
“Congratulations to the thousands of small business owners across the state who have made their voices heard on this issue.”
Opposition Leader Kellie Sloane said Labor created this mess by attempting to fix a problem that did not exist.
“We stood with cafés and small businesses to stop this mandate, but Labor refused to listen and support our sensible amendments,” Ms Sloane said.
“We will now give Labor another chance to reverse this legislation before Christmas by introducing a Repeal Bill next month.”
After months of businesses explaining the issues to a NSW Government that repeatedly met these concerns with a promise that an as yet undefined exemption framework would address all concerns, while at the same time sweeping up more and more businesses including service stations, this is a win for common sense.
ACAPMA
