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Stack of yellow and green paper disposable coffee cups with branding, in a cafe counter setting.

NSW bans non-recyclable coffee cups by 2028 as cafes warn of rising costs

NSW will require all takeaway coffee cups to be recyclable by 2028. Cafe owners warn this will push up costs.

NSW will phase out takeaway coffee cups that cannot be recycled, requiring all disposable cups to be recyclable for yellow-bin collection by 2028. Cafe owners warn the move will force them to spend more when margins are already thin.

Paul Nicolaou of Business Sydney says many venues are struggling with soaring energy, labour, and delivery costs. Paul Nicolaou fears they will have to replace existing cup stock and invest in new packaging or reusable systems.

This will push the cost of a coffee higher. Small businesses will be exempt from offering reusable cups, but the transition still creates burden.

South Australia introduced similar rules in 2024. A trial precinct in Barangaroo shows one solution: a QR-coded reusable cup system that customers can borrow for up to fourteen days.

Professional cleaning is handled offsite. Minister Penny Sharpe says cafes can refuse dirty customer cups on health grounds.

2028
Implementation deadline
Up to 14 days
Barangaroo cup borrow period
South Australia introduced in 2024
Similar legislation
3 years
Consultation period

Why it mattersThe rules will reshape how takeaway drinks are packaged and may lift prices for consumers while forcing small businesses to retool their operations.

AustraliaNSW cafe prices will likely rise as businesses absorb new packaging and cup-cleaning costs, affecting millions of coffee drinkers across the state.

✓ Claims checked against the source and corrected before publish. checked 1 h ago

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