New rules for Plastic Packaging Tax (PPT) will take effect from 1 April 2027, changing how businesses account for chemically recycled plastic and removing pre-consumer plastic waste as an eligible source of recycled content.

Under the new rules, manufacturers and importers will be able to use a mass balance approach to attribute chemically recycled plastic to packaging components. This allows recycled content to be calculated and allocated through a manufacturing process where recycled and virgin materials are mixed.

Using the mass balance approach will be optional. However, businesses that do not use it must treat chemically recycled plastic as non-recycled (virgin) plastic when calculating recycled content for PPT purposes.

To qualify, the supply chain must be covered by a compliant third-party certification scheme. Businesses will need to check their suppliers’ certification, retain relevant certificates and attribution declarations, and keep supporting records for six years.

Plastic packaging containing at least 30% qualifying recycled plastic remains exempt from PPT, although it still counts towards the 10-tonne registration threshold.

Businesses should review their supply chains, record-keeping procedures and packaging materials ahead of the changes.