New Report Finds Mandatory Product Stewardship Scheme Essential to Grow Australia’s Tyre Circular Economy

A comprehensive new analysis commissioned by Tyre Stewardship Australia (TSA) has confirmed that Australia’s tyre circular economy cannot grow without mandatory participation in a product stewardship scheme.

The Tyre Supply Chain Analysis: Opportunities to grow Australia’s circular economy for tyres, prepared by Randell Environmental Consulting, identifies 33 constraints limiting higher‑value recovery and highlights six “Very High” systemic failures that are holding back national circularity targets.

Free‑riding importers remain a critical barrier

The report finds that companies responsible for 47% of replacement tyre imports and 99% of vehicle‑fitted tyre imports do not contribute to the voluntary scheme levy.
This gap creates an uneven playing field where responsible participants bear the cost of programs that non‑contributing importers also benefit from.

Tyres continue to be lost to low‑value or harmful outcomes

Australia generates approximately 537,000 tonnes of end‑of‑life tyres each year. Only 26% are reused or recycled, with large volumes still exported for energy recovery or disposed of through landfill, onsite burial or illegal dumping.

The analysis identifies six key constraints rated as “Very High”:

1. free‑riding across tyre imports
2. rogue collectors undercutting accredited operators
3. permitted onsite burial of mining tyres
4. on‑farm dumping and burning of large OTR tyres
5. low domestic recycling rates
6. underdeveloped end markets for tyre‑derived material

Together, these constraints suppress investment, distort market signals and hinder the growth of a fair, functioning circular economy.

Mandatory participation identified as the most effective solution

The report assessed several regulatory and program options but concludes that mandatory participation, at either a national or jurisdictional level, represents the most effective path to address systemic failures across the supply chain.

While amendments to the current voluntary scheme could deliver incremental improvement, the report finds that optimising the existing model alone cannot achieve the circularity levels sought by government.

Existing legislation provides a pathway — but action is lagging

The findings point to established regulatory frameworks, including the Recycling and Waste Reduction Act 2020 and the NSW Product Lifecycle Responsibility Act 2025, as mechanisms that could support a regulated tyre stewardship scheme.

However, despite tyres being on the Australian Government’s Minister’s Priority List since 2022–23, no mandatory scheme has been implemented.

Industry readiness and government responsibility

TSA’s Head of Strategy and Advocacy, Sandra Scalise, said industry has already invested heavily in processing capacity in anticipation of stronger regulation.

“The report’s findings are unequivocal. Australia’s tyre supply chain is constrained by fragmented policies, legislation and enforcement. Without mandatory participation, the current scheme simply cannot deliver the circularity outcomes called for in the Government’s framework.”

The findings also align with the 2024 Circular Economy Framework, which aims to double Australia’s circularity rate and significantly increase safe resource recovery across the economy.

Download the full report

The full report and accompanying media release are available below:

• Tyre Supply Chain Analysis: Opportunities to grow Australia’s circular economy for tyres
• Media Release