What Is the Container Deposit Scheme, and How Does It Work?
CDS Explainer

What Is the Container Deposit Scheme, and How Does It Work?

May 20268 min read

Australia's Container Deposit Scheme (CDS) gives consumers a 10-cent refund for every eligible drink container they return for recycling. It's one of the most effective recycling tools in the country — and as of 2025, it now operates in every state and territory across Australia.

10c

Refund per eligible container

8

States & territories covered

85%

National recovery target

13B+

Containers returned in NSW alone

What Is a Container Deposit Scheme?

A Container Deposit Scheme — also known internationally as a Deposit Return System (DRS) — is a financial incentive program designed to encourage consumers to return empty drink containers for recycling rather than placing them in general waste, kerbside recycling bins, or discarding them as litter.

When you purchase an eligible beverage in Australia, a small deposit is embedded in the product price. When you return the empty container to an approved collection point, you receive that deposit back — 10 cents per container. The scheme creates a direct financial link between consumer behaviour and recycling outcomes.

How the 10 cents works

The 10c deposit is paid by the beverage manufacturer when they register their product with the scheme. When a container is returned, the consumer claims that deposit back. Containers that are never returned leave unclaimed deposits in the system — which flow to scheme administrators and, in some cases, to consolidated revenue.

A Brief History: From SA to National Coverage

South Australia was the first jurisdiction in Australia — and only the fourth in the world — to introduce container deposit legislation, launching its scheme in January 1977 under the Beverage Container Act 1975. The scheme was introduced primarily to target litter, and it worked: beverage containers now represent only 2.9% of litter in South Australia.

For decades, South Australia operated as the country's only CDS — until the Northern Territory followed in January 2012. Then, from 2017 onward, a modern wave of schemes launched nationally, each incorporating automation, reverse vending machines, and digital refund systems.

On 1 May 2025, Tasmania became the final state to implement a CDS — making Australia the first continent to be entirely covered by deposit return systems.

State / TerritoryScheme NameLaunchedReturn Rate
South AustraliaSA CDSJan 197774.7%
Northern TerritoryNT CDSJan 2012~80%+
New South WalesReturn and EarnDec 2017~65%
ACTACT CDSJun 201868%
QueenslandContainers for ChangeNov 201867.5%
Western AustraliaContainers for ChangeOct 2020~70%
VictoriaCDS VicNov 2023Growing
TasmaniaRecycle RewardsMay 2025New

What Containers Are Eligible?

The 10c refund mark printed on a container's label is the quickest indicator of eligibility. As a general rule, most drink containers between 150ml and 3 litres that carry the 10c mark are eligible — though the exact rules vary slightly by state.

Eligible Containers

  • Aluminium cans (beer, soft drink, energy drinks)
  • Glass bottles (beer, wine, spirits — where expanded)
  • Plastic bottles (water, soft drink, juice)
  • Liquid paperboard cartons (juice, flavoured milk)
  • Steel cans (iced coffee, ready-to-drink)
  • Any container 150ml – 3 litres with a 10c mark

Not Eligible (General)

  • Plain milk containers (not a beverage under most schemes)
  • Containers under 150ml or over 3 litres
  • Wine and spirits (except QLD, SA, and expanding states)
  • Containers without the 10c refund mark on label
  • Cordials and concentrates (currently excluded in most states)
  • Containers that are crushed, damaged or missing barcode

State-by-state variation

Eligible containers aren't identical across all states. Queensland and South Australia have expanded their schemes to include wine and spirits bottles. Western Australia will expand to cover all beverage containers between 150ml and 3L from 1 July 2026. Always check your local scheme's website to confirm eligibility.

How to Return Your Containers

There are multiple ways to return your containers and claim the refund, ranging from self-serve machines in your local supermarket to scheduled home pickups. Here's a breakdown of every available method.

🏧

Reverse Vending Machines (RVMs)

Full 10c

Self-serve kiosks at supermarkets and shopping centres. Scan containers one at a time. Receive a cash voucher, digital transfer or charity donation. Over 1,500 RVMs in NSW alone.

Available: All states

🏭

Collection Depots

Full 10c

Staffed sites that accept bulk returns in bags or boxes. Containers are counted by automated machines. Receive cash on the spot, bank transfer or donate to charity.

Available: All states

🛍️

Bag Drop Points

Full 10c

Place containers in a labelled bag tagged with your member number and drop at an unmanned 24/7 point. Counted automatically — refund credited to your account.

Available: NSW, QLD, WA, VIC

🏠

Home Collection

~7c (3c service fee)

Third-party operators (e.g. Envirobank, COEX) pick up containers from your doorstep. Convenient, but a 2–3c per container service fee is deducted from your refund.

Available: QLD, NSW, VIC, WA (select suburbs)

❤️

Charity Donation

10c to nominated group

At any return point, enter a charity or community group's scheme ID instead of your own. The full 10c goes directly to that cause. Over $72M donated in NSW alone.

Available: All states

🏢

Workplace & Event Collection

Varies

Offices, venues, stadiums and events can partner with collection operators. AFL Victoria community clubs have raised thousands per season through CDS collection.

Available: All states (growing)

What do you receive?

At most return points, you can choose how to receive your refund: cash or voucher (immediately), bank transfer or direct deposit via your scheme member number, or donation to a registered charity or community group. Some RVMs also offer in-store credit at retail partners.

Why Was the CDS Introduced?

Container deposit schemes were introduced to address three core environmental problems simultaneously:

01

Litter Reduction

Drink containers are among the most prevalent items found in litter surveys. By attaching a financial incentive to return, CDSs make littering a costly decision. In NSW, drink container litter fell 44% in the CDS's first year, reaching a 73% reduction by 2025.

02

Recycling Rate Improvement

Kerbside recycling is convenient but imprecise. CDS collection captures containers in a separated, high-quality stream — making them far more valuable and easier to process. Aluminium cans returned through CDS, for example, can be recycled infinitely without quality degradation.

03

Circular Economy Support

CDSs create a reliable supply of clean, separated materials that manufacturers can reuse in new products — closing the loop on beverage container production and reducing reliance on virgin raw materials.

How Does the Scheme Perform?

Since launching in 2017, NSW's Return and Earn scheme has become a benchmark for modern CDS design. By early 2025, it had seen 13 billion containers returned and over 1.19 million tonnes of materials recycled. Consumer awareness sits at 90%, and 82% of NSW adults actively participate.

Queensland's Containers for Change reached 10 billion container returns as of April 2025, with a 67.5% return rate and 1,581 jobs created. Western Australia collected 3.5 billion containers within its first three years of operation.

13B+

Containers returned in NSW (by Feb 2025)

10B+

Containers returned in QLD (by Apr 2025)

$72M+

Donated to charity via Return and Earn NSW

700+

Jobs created by NSW CDS (as of 2020)

The National 85% Recovery Target

Australia's National Waste Policy sets a target of 85% recovery for all beverage containers sold under CDS. Despite strong participation — particularly in early-adopter states — no jurisdiction has yet consistently achieved the 85% target. South Australia and the Northern Territory remain the closest performers, with the modern-wave states still building momentum.

The gap between current performance and the 85% target represents billions of containers still going to landfill and litter every year — and billions of dollars in unclaimed deposit value that never returns to consumers.

The kerbside complication

When you place an eligible container in your household recycling bin instead of returning it through CDS, the container goes to a Material Recovery Facility (MRF). The MRF can claim the 10c deposit — but you, the consumer who paid it, don't see that money. This is one reason why total container recovery data can look higher than it actually is for genuine consumer participation through CDS.

How to Get Started

Getting started with Australia's Container Deposit Scheme is straightforward regardless of which state you're in:

1

Look for the 10c refund mark on your drink containers' labels.

2

Set up a member account with your state's scheme (Return and Earn, Containers for Change, CDS Vic, etc.).

3

Use the official scheme app or website to find your nearest return point — RVM, depot, or bag drop.

4

Return containers and choose your refund method: cash, digital transfer, or charity donation.

5

Track your impact through your account dashboard.

Every container counts.

Australia's Container Deposit Scheme is one of the most effective recycling tools in the world — but its impact depends entirely on participation. The more containers returned, the stronger the recovery outcomes, the lower the litter, and the larger the circular economy opportunity.

Learn About the Experiment
The 10c Recycling Games

Important Legal Disclaimer

Please read and acknowledge these terms before continuing.