From 1 July 2026, large food-generating businesses in NSW, including supermarkets, hotels, hospitals, and institutions, must begin separate food organics collection, with staggered rollouts through to 2030 (EPA NSW). This requirement, part of the FOGO Recycling Act 2025, is backed by an $81 million government commitment and marks a major push within the state’s circular economy strategy.
For developers, building owners, and commercial operators, the mandate introduces not only new infrastructure needs and operational changes, but also an opportunity to reduce costs, strengthen ESG reporting, and demonstrate leadership in sustainability.
A critical step in preparing is ensuring that your waste management plan accounts for FOGO. Without early planning, projects risk costly redesigns, operational inefficiencies, and even fines. In this article, we’ll unpack what the FOGO policy means for the private sector and outline practical steps you can take, with insights on how Surearth can support your project by preparing effective waste management plans and compliance strategies.
FOGO Compliance Timeline 2026–2030:
What It Means for Waste Management Plans
The Protection of the Environment Legislation Amendment (FOGO Recycling) Act 2025 introduces a staged rollout of mandatory food organics separation for commercial and institutional premises, starting 1 July 2026. The rollout is based on the size of a business’s residual waste capacity:
- 1 July 2026:
Premises with ≥3,840 litres of weekly residual waste bin capacity - 1 July 2028:
Premises with ≥1,920 litres of weekly residual waste bin capacity - 1 July 2030:
Premises with ≥660 litres of weekly residual waste bin capacity
This captures a wide range of food-generating entities, including:
- Correctional complexes and mobile catering businesses
Supermarkets and food retailers - Restaurants, cafes, pubs, bars, takeaway outlets, and food courts
- Hotels, motels, and registered clubs
- Hospitals, private health facilities, mental health facilities, and aged care
- Educational institutions (schools, universities, TAFE, childcare)
Households are also included under the mandate, with councils required to provide a FOGO service by July 2030, except where no residual (red bin) service exists.
Compliance and enforcement responsibilities will be shared between the EPA and local councils, under the Protection of the Environment Operations Act 1997.
The penalties are significant:
- Fines of up to $500,000 for serious breaches
- Ongoing penalties of $50,000 per day for continuing offences
- On-the-spot fines up to $5,000 (with higher fines for repeat offences)
With these thresholds and penalties, businesses and developers must prepare their waste management plans now to avoid severe costs later.
Implications for Developers, Asset Managers & Commercial Waste Management Plans
The staged rollout means that larger waste-generating premises are first in line. Supermarkets, shopping centres, universities, hospitals, stadiums, correctional facilities, and large hospitality venues will need to be FOGO-compliant from July 2026. Developers, asset managers, and operators of these facilities should already be assessing their systems and reviewing their waste management plans.
For developers and asset managers,
the implications go beyond compliance:
- Another waste stream to manage:
Buildings must now accommodate organics alongside general waste and recycling. - Infrastructure upgrades:
Dedicated bins, odour control, and chute systems must be designed in. - Design trade-offs:
Waste rooms compete with high-value real estate, especially in basements where parking and services are mandated. Careful planning within the waste management plan can reduce excavation and building costs. - Mixed-use complexity:
Shop-top housing (residential above, cafes/retail below) requires tailored approaches to different generation rates and collection cycles. - Retrofits:
For existing facilities, creative solutions and accurate waste data are essential to size and justify new organics systems.
For commercial operators,
risks and obligations include:
- New collection contracts:
Organics may require separate service providers, with specifications and KPIs written into agreements. - Compliance monitoring:
Councils will actively check venues such as pubs, clubs, cafes, hospitals, and food courts. - Enforcement exposure:
Penalties in the hundreds of thousands mean non-compliance is both a financial and reputational risk. - Staff and user education:
Clean separation depends on training cleaners, staff, tenants, and residents, supported by signage and governance.
Pathway Through: Practical Solutions for FOGO Compliance
Meeting the FOGO mandate doesn’t have to be overwhelming. The key is to break it down into clear, practical steps that cover both compliance and efficiency. By planning early, developers and operators can avoid costly retrofits, reduce operational risks, and create systems that add long-term value.
- Audit & Record
Track waste volumes and log organic generation. Maintain records to plan infrastructure and demonstrate compliance.
- Infrastructure Planning
For new builds: design waste rooms, chute access, and odour controls from inception. For retrofits: evaluate existing systems and potential upgrades.
- Contracting
Secure FOGO-specific collection contracts and set clear KPIs for contractors.
- DA Integration
Ensure Development Applications include compliant FOGO infrastructure in Waste Management Plans.
- Education & Rollout
Provide training for staff, cleaners, tenants, and residents. Use signage, phased rollouts, and digital resources.
- Embed in Governance
Update strata by-laws and lease agreements to mandate proper FOGO use.
- Explore Support
The NSW Government’s $81M commitment largely funds councils, but businesses can benefit indirectly through better infrastructure, trials, and potential partnerships.
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This is where Surearth helps. We prepare waste management plans, design systems for new developments, advise on retrofits, develop contract specifications and KPIs, and create tailored education programs for staff and residents.
Developer / Asset Manager Quick-Action Checklist
- Audit current waste streams and log organic volumes
- Allocate space and design waste infrastructure early
- Upgrade or adapt chute systems or implement on-site organics solutions
- Secure specialised FOGO collection contracts and define KPIs
- Include organics planning in your Waste Management Plan and Development Applications
- Launch user education campaigns (signage, videos, strata comms)
- Update strata by-laws and tenant agreements
Case example:
Innovative Waste Management Plan Design in Inner Sydney
Surearth recently partnered with an architectural team commissioned by a prominent high-end developer on a high-rise mixed-use project in inner Sydney (residential on top, commercial at street level). Our role was to prepare the Development Application and waste management strategy, ensuring the design was both compliant and practical.
The challenge was to design a system that could handle FOGO without resorting to costly vertical chute infrastructure. Multi-storey organic waste chutes are often not fit for purpose (long drops risk splitting bags, fouling the chute, and compromising hygiene). By avoiding this option, the developer not only saved significantly on capital costs but also reduced the risk of future maintenance issues.
Instead, our team designed an innovative waste routing system that directed organics efficiently through the building to the basement, with clear, sanitary pathways to the street for easy collection. This freed up space to provide dedicated chutes for general waste and recycling, improving separation and delivering a cleaner, more efficient operation.
A key benefit was the way our design optimised valuable basement real estate. Waste rooms in basements compete directly with car parking and other mandated services.
By reducing the footprint of the waste room and lowering the operating head height, we helped minimise excavation requirements and free up space for additional parking. In some developments, this can even reduce the total number of basements required, translating into major construction cost savings.
The commercial component was also accommodated, with sufficient infrastructure to capture food waste from ground-floor tenants. Because this was a new project with no historical waste data, we modelled anticipated loads and calculated organics volumes (an area where reliable data is scarce). Our design built in flexibility to adapt to future changes in waste volumes and types, effectively future proofing the building.
Finally, the waste management plan was approved by council with no rework required, saving time, reducing cost, and giving the developer confidence that the building was FOGO-ready from day one.
If you’re a developer, building owner, or commercial operator preparing for FOGO compliance, Surearth can help you design a waste management plan that’s functional, compliant, and cost-effective.
Closing
The FOGO mandate is a significant shift in NSW’s waste management landscape, but with proactive planning, it’s a chance to enhance efficiency, avoid costs, and lead on sustainability. By acting early, you can protect valuable floor space, reduce risk, and build better systems for your tenants, customers, and communities. With severe penalties for non-compliance, the time to act is now, and Surearth is here to help with your waste management plan