Posted inBusiness, NSW News, Small Business

Coffee cup backflip: “cafe killer” laws to go, but not until after the election

Cafés from Coffs Harbour to Myall Lakes are being promised relief from Labor’s reusable coffee cup rules, but the catch is it won’t come until after the March 2027 election.

Environment Minister Penny Sharpe has told Ben Fordham that Labor would reverse the laws after the election. It came less than 24 hours after Premier Chris Minns defended the mandate on 2GB as good policy with bad messaging.

The NSW Liberals and Nationals say the backflip followed months of pressure from them and small business owners across the state. Now they want the laws gone immediately.

“We now have an extraordinary situation where Labor has made a commitment to repeal their own legislation next year if they win the election,” said NSW Nationals Leader, Shadow Minister for Small Business, and Member for Coffs Harbour Gurmesh Singh.

“Businesses can’t wait that long. They’ve had enough of pointless government intervention and red tape.”

“We will bring our Repeal Bill to Parliament next month to give business owners the certainty they need and deserve.”

The Environmental Legislation Amendment (Plastic Reduction and Container Recycling) Bill 2026 requires cafés and takeaway businesses to offer customers a reusable cup through a reuse scheme. Businesses are not allowed to charge for it.

“Labor has once again refused to listen to common sense and shown they don’t understand what it takes to run a small business,” said Member for Myall Lakes Tanya Thompson.

“We put forward sensible amendments that would have offered much needed certainty protection for small businesses, but Labor rejected them.”

“The Minns Labor Government knows small businesses are suffering and the best they could offer was assurances they will be given time to adjust to even more red tape.”

Mrs Thompson said the laws had served local cafés with more red tape in Small Business Month, stacking more costs and regulation on businesses already under pressure.

“The NSW Nationals have today announced we will repeal these unworkable cafe killer laws if elected in 2027,” she said.

The Opposition says local cafés, bakeries, and takeaway shops are already struggling with record business insolvencies, rising interest rates, credit card surcharge changes, and spiralling fuel costs.

“Our community wants cleaner waterways and less waste. That does not excuse poorly managed reform or costs being pushed onto businesses already struggling to stay afloat,” Mrs Thompson said.

“We stood with cafés and small businesses to stop this mandate, but Labor refused to listen and support our sensible amendments,” said Leader of the Opposition Kellie Sloane.

“We will now give Labor another chance to reverse this legislation before Christmas by introducing a Repeal Bill next month.”

“Any future proposal must be developed with the businesses expected to make it work,” said Shadow Minister for the Environment Felicity Wilson.

Mr Singh said it was great to see the Minister had reconsidered her position.

“Congratulations to the thousands of small business owners across the state who have made their voices heard on this issue,” he said.



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