The New South Wales government has reversed key elements of its legislation aimed at reducing plastic waste by mandating the use of reusable mugs and glasses in cafes, following strong opposition from small businesses and media outlets. Premier Chris Minns’ administration will abandon laws that would have required cafes to provide customers dining in with reusable drinkware options from 2028, as well as a scheme that imposed fines of up to $110,000 on businesses failing to participate in reusable cup initiatives.

The initial legislation, passed recently in parliament as part of a broader strategy to curb plastic waste in Sydney—where landfill capacity is expected to be exhausted by 2030—sparked backlash from small business owners and commentators who cited potential operational costs and complexities. The Daily Telegraph ran a front-page campaign opposing the mandatory reusable cup scheme, highlighting concerns from affected businesses.

NSW Environment Minister Penny Sharpe confirmed the government's decision during an interview on 2GB radio on Wednesday, explaining that the repeal aims to ease pressure on small businesses. “We know small businesses are under pressure and we want them to be able to operate in the way that they need to operate,” Sharpe said. She added that exemptions would remain a key feature of the policy framework.

The government will, however, maintain other measures that form part of the waste reduction plan. Businesses will still be required to accept customers’ personal reusable cups, provided they are clean, and single-use takeaway cups must be recyclable by 2028. Sharpe has instructed the NSW Environment Protection Authority to issue a “statement of regulatory intent” to clarify these positions amid the policy uncertainty.

The decision comes only a week after the legislation’s passage, with the government facing mounting political pressure ahead of the March 2027 state election. The opposition has pledged to repeal the laws altogether, criticizing them as burdensome regulations on businesses. Coalition and One Nation leaders have made reducing business costs a central theme of their campaigns, with One Nation proposing significant payroll tax cuts, particularly for regional employers.

Premier Minns had previously defended the legislation, emphasizing that the government was not eliminating disposable cups and noting widespread public use of them. However, after discussions with Sharpe, the premier agreed that mandating reusable mugs and glasses was unnecessary at this time.

The policy reversal has drawn criticism from environmental advocates. NSW Greens environment spokesperson Sue Higginson called it “a sad day” and accused the government of yielding to media and business pressure at the expense of environmental progress. Jeff Angel, director of the Boomerang Alliance, expressed disappointment, saying the retreat on reusable cups undermines efforts to reduce plastic pollution and reflects a reluctance to enact substantive change.

The controversy over the cup laws is part of a series of policy rollbacks by the Minns government, which recently reversed changes to regional rail timetables and modified parliamentary staff breastfeeding guidelines after opposition criticism. As the state prepares for the upcoming election, the government faces scrutiny on multiple fronts, including its environmental policies and responsiveness to business concerns.