Gurmesh Singh
NSW Nationals Leader
Shadow Minister for Small Business
Jacqui Munro
Shadow Minister for the Environment
NSW businesses struggling with surging costs are facing another hit under the Minns Labor Government’s confused reusable coffee cup Bill.
Labor’s Environmental Legislation Amendment (Plastic Reduction and Container Recycling) Bill 2026 states that cafés and takeaway hospitality businesses are required to implement reusable takeaway cup schemes.
While a staged approach has been foreshadowed it is unclear who will be required to fully comply with the scheme by 2030.
Shadow Minister for Small Business Gurmesh Singh said under the plan cafés will also be legally prohibited from charging customers for the cost of supplying those cups.
“As the legislation is drafted a café owner would be forced to absorb the cost purchasing, managing, cleaning and storing reusable cups, with no guarantee they will ever be returned,” Mr Singh said.
“The Minns Labor Government is tying up businesses in red tape to get a green headline.”
“Businesses across NSW are already struggling, with more than 6,200 closing last year. The last thing small business owners need is a government introducing unworkable red tape.”
A café selling around 300 coffees per day would need to manage thousands of reusable cups in circulation, without being able to increase prices to cover the costs.
Shadow Minister for the Environment Jacqui Munro criticised the lack of consultation, saying industry stakeholders were blindsided by the proposal.
“Labor is trying to rush through confused reform without engaging the very businesses expected to implement it. There is no clarity about who has to do what, by when,” Ms Munro said.
“We all want to reduce plastic waste, but this reform must be workable. Right now, this proposal simply isn’t, and coffee lovers and small businesses will pay the price.”
“Labor’s policy is a bitter brew for café owners and coffee lovers. The Minns Labor Government’s plan looks like: no cups, no cafés, no coffee.”
The NSW Liberals and Nationals are calling on the Government to abandon the scheme in its proposed form and undertake genuine consultation with the hospitality sector.
Business Sydney Executive Director Paul Nicolaou said businesses will not survive if governments continue piling on more red tape, regulation and bureaucracy at a time when operators are already under enormous pressure.
“We all want to see less waste and more sustainable outcomes, but now is not the time for changes that unfairly hit small businesses already struggling with soaring energy bills, rising rents, insurance costs and workforce shortages.
“Small businesses are the backbone of our economy and our communities, and they need practical support and certainty, not more compliance costs and administrative burdens that make it harder to stay afloat and grow.”