NSW cafe rules: Premier drops mandatory mug plan after brief backlash

Cafe owners in New South Wales will no longer be forced to provide mugs and glasses to customers dining on premises. The state government announced the reversal on Wednesday morning, ending a regulatory push that had been enacted only one week earlier. The change removes a provision that required businesses to participate in a reusable cup scheme or risk a penalty of up to $110,000.

Environment Minister Penny Sharpe revealed the decision during an interview on 2GB radio. She stated that the government recognized the financial strain on small operators and wanted to allow them to run their businesses without new operational hurdles. Sharpe noted that extensive exemptions were always part of the original design, but the core mandate for dine-in mugs is now being withdrawn. The original timeline required these changes to take effect in 2028.

The policy was introduced to reduce plastic waste, citing projections that Sydney's landfill capacity will be exhausted by 2030. However, the move faced immediate resistance from the hospitality sector and media. The Daily Telegraph ran a front-page story titled "'Nup' to the Cup" last week, amplifying complaints from small business owners about the cost of joining mandatory schemes. Prior to the repeal, the government had indicated that such schemes would be voluntary for small businesses, with initial trials limited to government-owned venues like stadiums.

Premier Chris Minns initially defended the legislation on Tuesday, arguing that the government was not banning disposable cups entirely. He told 2GB that he and most people still use such cups and questioned whether the policy had been communicated clearly. By Wednesday, Sharpe said she and the premier had decided the mandate was not necessary. She has directed the NSW Environment Protection Authority to issue a statement of regulatory intent confirming that specific changes will not proceed.

Some elements of the original bill remain in force. Businesses must still accept clean, customer-owned reusable cups. Additionally, single-use takeaway cups sold in the state must be recyclable by 2028. The formal repeal of the laws will not occur until after the state election in March 2027, as parliament has only two sitting weeks remaining before it is dissolved. The opposition has pledged to remove the legislation if it wins power, arguing the new rules add unnecessary regulatory burden.

Critics from across the political spectrum reacted to the swift U-turn. Sue Higginson, the NSW Greens spokesperson for the environment, described the decision as a "coffee cup captain's call" and lamented that media influence appeared to outweigh ministerial judgment. Jeff Angel, director of the Boomerang Alliance, linked the reversal to the federal government’s pause on packaging standards, suggesting the Labor party prefers to avoid enforcing substantive environmental change.

The policy shift adds to a series of recent reversals for the Minns government. Last week, the premier also abandoned timetable changes for several local and regional rail lines following complaints from commuters. The political pressure is intensifying with the election approaching. A recent Guardian Essential poll shows Labor and One Nation tied at 28 percent of the national primary vote, while the Coalition trails at 23 percent. Both opposition parties are campaigning on platforms that favor small business, including promises to reduce payroll taxes.