With just 12 per cent of Australia's plastics recycled, the federal government has announced a push to process more waste and track recycled products from their origin to supermarket shelves.
Nine new projects will be supported by a $11 million joint investment along with the NSW government to expand private recycling infrastructure across the state.
The projects aim to improve the capacity to remanufacture plastic, paper, cardboard and tyres in NSW by more than 20,000 tonnes a year.
Federal Environment Minister Tanya Plibersek says the government is also considering creating a national framework to track recycled products to improve confidence and transparency in the system.
"Unfortunately, only 12 per cent of plastics were recycled in Australia in 2020-21," Ms Plibersek said on Tuesday.
"We know Australians want to do their bit and recycle and many businesses are doing the right thing.
"Labor wants to see a circular economy in Australia - more local jobs to support recycling and less waste going to landfill."
The proposed plan would allow businesses to track recycled content through the stages of material recovery, reprocessing, manufacturing, distribution and retail.
All state and territory environment ministers have agreed to pursue the initiative, with a discussion paper open for public consultation until the end of August.
The $11m in public funding to improve recycling capacity will be matched by $18.5m in spending from businesses that receive the funds.
NSW Environment Minister Penny Sharpe said the nine businesses receiving the support were playing an instrumental role in the state's transition to a circular economy.
"It's not only a win for the NSW recycling industry but for our economy, creating almost 100 jobs," she said.