Supporting NSW’s transition to net zero: What the new food waste separation requirements mean for businesses

From 1 July 2026, the NSW Government requires certain businesses, including supermarkets, cafes, schools and hotels, to source-separate food and garden waste. Under the new legislation, supermarkets will also be required to report on the donation of surplus food to food charities.

Why has this come into effect?

Who is affected?

Start dates will be staggered based on garbage bin capacity however, businesses required to separate food waste from 1 July 2026 include:

• Supermarkets
• Premises in which food or drink is prepared or provided including:
• Correctional complexes.
• Centre-based childcare facilities.
• Educational establishments, including schools, universities and TAFE.
• Hospitals, including and health facilities.
• Seniors housing for which the council does not provide a regular collection service.
• Food and drink premises such as restaurants, cafes, takeaway food and drink premises, pubs and bars.
• Hotel or motel accommodation.
• Registered clubs that hold a club licence under the Liquor Act 2007.
• Premises used for a mobile catering business.
• Premises where seating is provided in a common food court.
• Other premises prescribed by the regulations.

In a building complex with tenants, the responsibility for arranging food waste separation will be with whoever oversees the waste collection service. Most likely, this will be the building owner or manager. It will not be the responsibility of the individual tenants. The building manager will need to ensure that there are enough bins for food waste, and that organic and non-organic waste are not mixed during transportation.

Penalties for non-compliance may include fines for both corporations and individuals, with additional penalties applying for continuing offences.

Local councils will monitor and enforce business compliance, while the Environmental Protection Authority will monitor and enforce state and public authority compliance. The EPA may grant part or full exemptions.

Reporting food donations

From 1 July 2026, larger supermarkets must keep weight records of certain food types donated for human consumption each month and the organisation to which it was donated.

Food types to be included are:

• Baked goods
• Meat and dairy
• Fruit and vegetables
• Frozen food.

The records must be:

• Created by the end of the month following the month in which the food was donated;
• Retained for six years; and
• Made available for inspection or provided to an authorised officer on request.

The EPA may publish the records and grant exemptions.

What does this mean for you?

Facility Operators

To comply with the requirements, facility operators will need to provide bins for separated food waste, which will likely be obtained from the waste contractor. They will also need to identify and allocate space for the storage of separated food waste. Staff will need to be adequately trained to identify and separate food appropriately, and a new or existing contractor will need to arrange the collection of separated waste.

Developers

Food waste must be taken into account when calculating waste quantities and determining which waste streams need to be collected. More space may need to be allowed in certain new commercial developments to accommodate separated food waste.

Specifications, or the absence of them, in council development control plans and waste guidelines will be overridden by this NSW Government requirement.

How SLR can help

Having prepared hundreds of waste management plans across a wide range of sectors, our consultants are well placed to support clients in understanding emerging regulatory requirements and incorporating them into project planning and design. The separation of food waste is just one of many considerations within the increasingly complex requirements specified by local and state authorities for new developments. Our team can provide practical advice to help navigate these requirements and achieve successful project outcomes.