Businesses must separate food waste

With landfill space in Greater Sydney expected to run out by 2030, scaling up FOGO recycling is essential to avoid a looming waste crisis. It also takes us one step closer to a circular economy in NSW, where resources are recycled, reused and repurposed.

Research in 2023 found a quarter of all NSW business waste going to landfill is food waste which could be recycled into beneficial products. It also found food waste is the biggest waste material sent to landfill across every business sector, except the health care and social assistance.

As Greater Sydney runs out of landfill capacity by 2030 or earlier, the cost of disposing waste to landfill is expected to rise significantly. The savings from food waste source separation depend on how effectively food waste is managed, with the biggest savings coming from reduced landfill costs and potentially reducing food bills, once the business starts managing food waste better. Understanding how much food waste you generate is the first step to reducing excess waste and saving money.

To make separation easier, set up bins and buckets near kitchen benches or dishwashers, close to where food waste is generated.

Food waste can be heavy, so use bins in sizes that make it easy to transfer to waste collection points.

If it needs to be carried to collection points, use containers that are small enough for staff to lift and schedule frequent transfers so bins don’t get too full.

Wheelie bins are a better option if there is enough space.

Consider installing on-site processing equipment to collect and manage food waste as these can be more convenient and reduce collection frequency.

Only the following materials are allowed in food waste bins:

• food (including meat, bones, fish, dairy, bread, leftovers)
• compostable plastic kitchen caddy liners that comply with Australian Standards for commercial composting
• fibre-based kitchen caddy liners, such as newspaper.

Everything else must be disposed of in mixed recycling or general waste bins.

We recommend talking to your current waste collection contractor as suitable bins are usually provided as part of service agreements.

Buckets or bins need to be set up close to where food waste is generated. Businesses may also consider signage at bin bay areas or on kitchen caddies, and onsite processing equipment.

While there is no legislated requirement to ensure customers dispose of waste correctly, clear signage will help them to use the right bins, reducing contamination and preventing the wrong items ending up in food waste recycling bins.

Food court operators are exempt from complying with the requirements in the food court's common seating area until 2030 under certain conditions. See Exemptions from the FOGO mandates for more information.

A growing number of places around the world have already implemented food waste recycling to reduce waste to landfill, drive down emissions and achieve circularity. This includes the states of California, Connecticut and New Jersey in the USA, Austria, Belgium, France, Germany, Italy, Norway, Sweden and the UK.

Relevant premises include:

• supermarkets
• restaurants, cafes, takeaways, pubs and bars
• institutions including correctional centres, schools, universities, hospitals and aged care facilities
• food courts where seating is provided for the immediate consumption of food and drinks.

Councils and businesses can face maximum penalties of up to $500,000 with a further $50,000 per day for continuing offences.

On-the-spot fines up to $5,000 can also be issued, with higher fines for second offences.

There are also lower maximum penalties and on-the-spot-fines for non-compliance with the large supermarket food donation reporting requirements.

While there are penalties for non-compliance, initially the focus will be educating and supporting businesses to comply. Councils are the regulatory authority for businesses within their LGAs, while the EPA is the regulatory authority for institutions and council-run businesses. The legislation also identifies the National Parks and Wildlife Service as the regulatory authority for businesses falling under their jurisdiction.

Depending on the situation and where deemed appropriate, enforcement action may still be considered in the education phase based on steps taken to prepare for the FOGO requirements, efforts to comply, and other factors impacting ability to comply.