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Guide / Sustainability & rules / Chapter 8.1

Recyclable, compostable and biodegradable, explained.

Three words that sound similar and mean very different things. Here's what each one actually means for packaging in Australia, and how to choose and describe your packaging honestly.

6 min readReviewed by the PackQueen packaging teamUpdated October 2026Start-upGrowingEnterprise

The short answer

Recyclable means the packaging can be collected, sorted and made into new material through systems that actually exist, such as kerbside recycling. Compostable means it breaks down into compost under set conditions: industrially compostable packaging needs a commercial composting facility, while home compostable packaging is designed for a home compost bin. Biodegradable only means something breaks down eventually, with no set time or conditions, so on its own it tells your customer very little. For most cardboard and paper packaging, recyclable is the simplest and most useful option.

Recyclable

A pack is only recyclable in practice if your customer can put it in a collection system that accepts it, and that system can sort and reprocess it. Clean cardboard boxes are widely accepted in kerbside recycling across Australia, but not every paper item is. Tissue paper, for example, isn't accepted by every council, so give component-by-component instructions and tell customers to check their council's list. Soft plastics, such as satchels and plastic film, are not accepted in most kerbside bins and generally need a separate collection point where one is available.

The Australian Competition and Consumer Commission (ACCC) notes that customers are likely to assume the facilities exist to recycle something described as recyclable. If recycling depends on a special drop-off or a particular area, say so.

Compostable: home or industrial

Industrially (commercially) compostable

Designed to break down in a commercial composting facility, which runs hotter and more controlled than a home bin. The Australian Standard for this is AS 4736. These items should not go in a home compost bin, and many councils don't accept them in garden or food organics bins either.

Home compostable

Designed to break down in a well-managed home compost bin. The Australian Standard for this is AS 5810. The City of Greater Geelong explains that, under test conditions, AS 5810 products need to biodegrade within a year, and may take longer in a real home bin.

What councils accept varies

Whether compostable packaging can go in a council food and garden organics bin depends on the council and the state. For example, the City of Greater Geelong says the Victorian Government will stop accepting compostable packaging in green bins from 2027. Always check the local rules before telling customers which bin to use.

Biodegradable

Whether and how fast a material breaks down depends on the material and the conditions it ends up in, such as heat, moisture and microbes, and a claim needs evidence for those conditions. Without a time frame and conditions, "biodegradable" doesn't tell your customer how or where to dispose of the packaging. The ACCC's guide, Making environmental claims, gives an example of a biodegradability claim that was likely to mislead because it implied home composting results the evidence didn't support. Some states have also banned degradable plastics. If you want to talk about end of life, recyclable or certified compostable is clearer.

The three terms at a glance

These are general explanations. Check local council rules and the ACCC's guidance before making claims.

TermWhat it meansWhere it goesWatch out for
RecyclableCan be collected, sorted and remade into new materialKerbside recycling, or a collection point for some materialsSoft plastics usually need a separate collection point
Industrially compostable (AS 4736)Breaks down in a commercial composting facilityA commercial composting serviceNot suitable for home compost, and many councils don't accept it
Home compostable (AS 5810)Breaks down in a home compost binA home compost binTakes longer in real conditions than in a test
BiodegradableBreaks down at some point, under some conditionsUnclearToo vague to guide customers on its own

What it means for you

The same question, answered for where your business is today.

Choose your stage at the top of the page to open the advice for you.

Start-up · under 100 units

Keep it simple. Cardboard boxes and paper tape are widely accepted in kerbside recycling, but some items, such as tissue paper, aren't accepted by every council. Tell customers which bin each part goes in, and to check their council's list.

Avoid describing packaging as "eco-friendly" without saying why. Be specific instead.

Growing · 100 to 2,499 units

Check every part of your pack, not just the box. A recyclable box with plastic tape, plastic filler and a plastic insert is harder to recycle.

Try this: list each component of a typical order and note where your customer should put it.

Enterprise · 2,500 units and more

Base every claim on evidence, and keep it on file. If you use compostable packaging, check that your customers have access to the right facilities before you rely on it.

The Australasian Recycling Label program can assess your packaging and give on-pack disposal instructions.

Common mistakes

  1. 1
    Calling packaging "biodegradable". It's vague and can mislead. Say what the packaging is made of and how to dispose of it.
  2. 2
    Assuming compostable is always better. Industrially compostable packaging often ends up in landfill if customers can't access a commercial service.
  3. 3
    Forgetting the small parts. Plastic tape, labels and filler can make an otherwise recyclable pack harder to recycle.
  4. 4
    Mixing materials. Paper laminated to plastic can be hard to separate. Choose single materials where you can.
  5. 5
    Overclaiming. Words like "eco-friendly" or "sustainable" need to be backed up and explained.

Recyclable and compostable questions

What's the difference between recyclable and compostable?
Recyclable packaging is collected and remade into new material. Compostable packaging breaks down into compost under set conditions, either in a commercial facility or a home compost bin.
Is biodegradable the same as compostable?
No. Compostable means it breaks down into compost within a set time under set conditions. Biodegradable has no set time or conditions, so it's much less useful to customers.
Can compostable packaging go in my green bin?
It depends on your council and state. Some councils accept certain compostable items and others don't. Check your local council's rules.
Is cardboard recyclable?
Clean cardboard boxes are widely accepted in kerbside recycling in Australia. Our corrugated cardboard contains at least 60% recycled content.
How should I describe my packaging to customers?
Be specific: say what it's made of and where it should go, for example "this cardboard box can go in most kerbside recycling bins; check your council's list". Avoid vague words like "eco-friendly" on their own.
Paperlust

From our customers

Paperlust

No plastic in their shipping, including wrap and fill. Plastic-free and recyclable aren't the same thing, so check each part against your customers' council rules.

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