The Australian Competition and Consumer Commission (ACCC) has issued a draft determination proposing to grant a five‑year exemption that would allow the Battery Stewardship Council (BSC) to continue operating its national battery recycling scheme without breaching competition law.
Under the ACCC’s proposal, BSC members and other industry participants would be able to meet their participation obligations under the B-cycle Battery Stewardship Scheme while receiving statutory protection from certain competition and cartel provisions of the Competition and Consumer Act.
ACCC Deputy Chair Mick Keogh said the regulator’s preliminary view was that the public benefits of the scheme outweighed any potential detriments. “Our role in this process is to determine whether the collaboration and price agreement between the BSC’s members, results in benefits to the public that are greater than the potential detriments and therefore can be granted an exemption. In this case our preliminary view is that an exemption can and should be granted,” he said.
Keogh highlighted environmental, health and safety benefits from diverting batteries from landfill and boosting public awareness of responsible disposal. “We consider the conduct proposed by BSC is likely to result in significant environmental, health and safety benefits by diverting batteries from landfill and raising public awareness around responsible battery disposal and re-use, reducing fire risks in waste streams, and increasing innovation.”
He also acknowledged the scheme’s weak collection performance to date, noting that its voluntary nature has limited take‑up. “We acknowledge the Scheme’s low collection rate to date, particularly due to its voluntary nature, and recognise the opportunity for better collection outcomes with states moving towards mandatory stewardship frameworks and as consumer awareness and behaviour continues to change,” Mr Keogh said.
As part of the draft determination, the ACCC proposes conditions intended to address safety and transparency concerns. The regulator would require the BSC to continue implementing its Button Battery Safety Strategy and publish an annual report on key scheme outcomes. An independent review of the scheme would also be required in three years’ time.
Some interested parties had argued for a shorter authorisation period of two to three years, citing uncertainty around the anticipated introduction of mandatory product stewardship legislation and the scheme’s low collection rates. The ACCC said it did not expect the BSC’s proposals to delay other regulatory approaches in the short to medium term, but is seeking further submissions on the proposed five‑year duration.
The B-cycle scheme, run by the not‑for‑profit BSC, promotes the safe collection, recycling and disposal of end‑of‑life batteries but currently excludes automotive lead‑acid batteries and batteries already covered by other recycling programmes. The council first sought authorisation in 2020 for a static, weight‑based levy charged on imported batteries at four cents per equivalent battery unit, passed to consumers and used to fund collections and a rebate system for service providers.
The current proposal would add an annual review process to set levies and rebates using eco‑modulated formulas based on battery type, aiming to better reflect the differing costs and risks of collection and recycling and to raise revenue for ongoing public awareness campaigns.
The draft ACCC determination follows regulatory movement in the states. In March 2025 the Product Lifecycle Responsibility Act 2025 (PLR Act) commenced in New South Wales, creating powers for mandatory stewardship frameworks; the NSW government has signalled it will urgently use those powers to make regulations targeting batteries. Environment ministers around the country have agreed on the need for urgent reforms to boost participation in product stewardship for end‑of‑life batteries.
The ACCC granted an interim authorisation to the BSC on 4 June 2025 that allowed the scheme to continue and permitted levy increases tied to the Consumer Price Index. That interim decision also allowed the BSC to proceed with developing eco‑modulated levy arrangements while the substantive application is assessed.
The ACCC’s draft determination and related documents are available on its public authorisations register. The regulator will consider submissions on the draft before making a final decision.
