Loading
Some environmental advocates have criticised the legislationβs relatively light approach to βclassicβ fast fashion retailers like Zara compared to Shein or Temu.
Maguire says shielding domestically owned corporations is partly spurred by a global political trend towards protectionism.
Professor Justine Nolan, director of the Australian Human Rights Institute at the University of New South Wales, acknowledges the scope of the law is narrow, but says itβs a step in the right direction.
β[The law] sends a signal to all fashion labels that their business models need to mainstream environmental considerations as they are in the sight of regulators,β she says.
Both Shein and Temu say they operate ethically and are not fast fashion brands.
Whatβs happening in Australia?
The Australian government has been slow to regulate the fast fashion industry, but some action is taking shape.
In 2024, clothing stewardship scheme Seamless was launched by the federal government, with the aim of reducing our local fashion industryβs carbon footprint.
The stewardship is funded by a levy of 4 cents per sale paid for by participating brands, including David Jones, Country Road and M.J. Bale.
In 2024, then environment minister Tanya Plibersek launched clothing stewardship scheme Seamless.Credit: Alex Ellinghausen
Yet some experts say initiatives like Seamless are not enough.
βThereβs lots of evidence to suggest you need a mandatory scheme to actually drive change,β says Maguire. βOtherwise, you get free riders β a few good brands and retailers having to cover the costs of everybody elseβs recycling.β
She also thinks the levy of 4 cents should be closer to Franceβs tax of up to $9 if it is to meaningfully influence consumer behaviour.
In 2024, then environment minister Tanya Plibersek said Seamless would introduce mandates if not enough brands signed on. Around 60 brands and retailers are currently partners.
Danielle Kent, general manager of industry transformation at Seamless, says while the scheme is still in its nascency, they have established a circular design training program and are starting to look at what collecting, sorting and recycling clothing at scale might look like.
βThe French scheme started in 2007, so theyβre 18 years ahead.β
βWe do not want to find ourselves in another soft plastics debacle where we are collecting and thereβs nowhere to go. Itβs really important we are measured in the way that we go forward.β
She says Seamless is aiming for a regulatory framework but will remain voluntary for now.
Australia also has a National Waste Policy Action Plan, aimed at transitioning to a circular economy. But it does not include specific guidelines or targets for textile waste, despite the fact that around 60 per cent of modern clothing is made from synthetic fibres and more than 200,000 tonnes of clothing go to landfill each year.
A spokesperson for the Department of Climate Change, Energy, the Environment and Water says they βsupport the fashion industry in Australia to be more responsible for the environmental impacts of clothing,β such as through funding Seamless.
Key statistics
- Australians are the top consumers of new clothing per capita in the world, spending an average of $13 per item.
- Australians throw out more than 200,000 tonnes of clothing each year.
- In 2023, Sheinβs Australian sales hit $1 billion, while Temu has more than 1.2 million Australian shoppers, amassing an estimated $1.3 billion in annual sales.
- Sheinβs 2023 sustainability reportΒ revealed the companyβs carbon emissions had almost tripled in three years, making it the biggest polluter in the fashion industry.
- Fast fashion retailers like Shein and Temu have previously been investigated by anti-slavery groups for the use of forced labour.
What would similar laws look like here?
So, why does Australia lag so far behind countries like France in holding the fashion industry to account?
βAustralia has tended to be a follower in developing legislation to regulate human rights and environmental impacts,β says Nolan, adding that Australians are some of the top consumers of new apparel globally.
Nina Gbor, director of the Australia Instituteβs Circular Economy and Waste Program, is calling on the federal government to introduce βFrench-styleβ laws to regulate the fast fashion industry.Credit: Irena Traikovsky
Jaana Quintance-James, CEO of the Australian Fashion Council, praises the French legislation but is unsure whether similar laws would be suitable in Australia at this point, given the current lack of environment and ethical reporting capabilities that would be used to inform legislation.
She first wants to see greater government investment in Australian manufacturing to support our local textile, clothing and footwear industries.
βThe Australian government is not recognising the powerhouse that our industry is. We employ 500,000 people. Itβs $28 billion worth of value added into the economy,β she says.
βAbout 97 per cent of what is sold in Australia is made offshore. The tariffs are the latest example of when we are at the mercy of international supply chains, and we need to build greater resilience.β
In 2024, The Australia Institute called on the federal government to support programs for waste repair and recycling and develop a French-style tax on fast fashion.
Loading
Nina Gbor, director of the instituteβs Circular Economy and Waste Program, says while βeveryone has a responsibilityβ to shop sustainably, it is time for regulation to come into force.
βWeβve passed the stage of what individuals can do. Thereβs too much focus on individual action. Right now, we need to all be screaming at the government to do something.β
Her policy recommendations include investment in on-shore recycling, expanded education programs, tax incentives, and supporting Australian brands with capital and marketing.
The Australian Retailers Association has called on the government to take similar action, with CEO Chris Rodwell, saying: βThe rise of ultra-cheap global online retailers, like Temu and Shein, is changing the retail landscape at pace.β
βThe ARA is advocating for government action to close tax loopholes, enforce compliance with Australian consumer protection laws, and level the playing field across sustainability, safety, and modern slavery requirements.β
Neither the Australia Institute nor the ARA has submitted formal proposals to the government yet.
While Australia instituted a Modern Slavery Act in 2019, Nolan says: βIt has not substantially addressed the problem or facilitated significant changes in business practices.β
She wants to see the introduction of penalties for non-compliance and mandatory human rights due diligence, like the EUβs Corporate Sustainability Due Diligence Directive.
She thinks advertising bans could go hand-in-hand with this, but βgiven the long-term challenges currently faced in passing bans on marketing in industries such as gambling and fossil fuels, it may be slow.β
Make the most of your health, relationships, fitness and nutrition with our Live Well newsletter. Get it in your inbox every Monday.