Inside Australia Post’s National Circular Textiles Pilot

December 11, 2025
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As part of our program to build a coordinated national system for clothing collection, sorting, reuse and recycling, the Seamless Circular Clothing Textiles Fund is supporting seven real world projects that are finding new ways to keep clothing out of landfill. 

One of these initiatives is the National Circular Textiles Pilot, led by Australia Post. We sat down with Marty Rowell, Head of Circularity and Decarbonisation, to learn how, together with their partners, Australia Post is making it easy for consumers to return used clothing in purpose-designed satchels for recycling and recovery. 

Tell us about the National Circular Textiles Pilot

The National Circular Textiles Pilot is a real-world trial we’re leading in collaboration with R.M.Williams, REMONDIS Australia, BlockTexx and iQRenew to test a simple way for Australians to return clothes that are no longer needed. Using a purpose-designed satchel, R.M.Williams customers can send back shirts and T-shirts for recovery through a traceable, circular system. The pilot will help to demonstrate how a national clothing recovery system could work at scale. 

Australia Post’s sustainability strategy looks to 2030 and beyond, with circularity as one of our core pillars. This pilot is both a learning opportunity and a practical example of how Australia Post could help deliver circular solutions at scale - and enable a more circular future for clothing in Australia. 

Tell us about the organisations you’re collaborating with and their roles

We’re partnering with R.M.Williams, REMONDIS Australia, BlockTexx and iQRenew on this trial; each brings their own expertise essential for closing the loop, with Australia Post acting as the facilitator and enabler.

With our trusted network, we provide the national infrastructure combined with the data capability to make the service simple, accessible and reliable. Each partner plays a critical role in bringing the circular service together:

R.M.Williams plays a pivotal role in consumer engagement as a trusted connector for customers seeking sustainable solutions. The brand is expanding its service offering by providing circular satchels through its website and actively encouraging customers to participate in the trial. 

REMONDIS sorts the returned garments and ensures each item is directed to its best possible next use, whether reuse, re-manufacturing or recycling, while collecting the data needed to verify the circular pathway. 

BlockTexx transforms unwearable garments into recycled polyester and cellulose, creating new materials for manufacturing and agricultural applications. 

iQRenew supports the creation of the circular satchels using Australian-made recycled resin pellets and recycles the used satchels back into pellets for re-manufacture. 

Tell us about the innovations you’re most excited about

The pilot uses a purpose-designed circular satchel that works seamlessly with Australia Post’s existing network, making it easy for customers to return clothing they no longer need. Made from 100% recycled content collected from Australian kerbside bins, the satchel shows how everyday “waste” can become a valuable resource. 

The satchel is made entirely from Australian household soft plastics (LDPE) - processed, manufactured, collected and recovered for re-manufacture, all onshore. 

Another important innovation in this trial is data traceability. For the first time, Australia Post is capturing detailed data as garments move through their circular journey downstream from the consumer. This means every item can be tracked to its next use, providing transparency and confidence in the system. It also enables merchants to offer verified incentives that support circular behaviour. This data traceability is a key foundation for scaling a trustworthy, transparent circular economy. 

Why is this project important to Australia Post? 

Creating a truly circular economy at scale depends on strong collaboration across the entire ecosystem, from product design through to material recovery, because no single organisation can achieve it alone.

This pilot brings together committed partners to test, learn and refine circular processes in the real world. These findings will help shape a scalable circular clothing sector for Australia, with the potential to expand into other sectors over time. 

 

Describe the outcomes and learnings you’re hoping to achieve 

The pilot will test the technical, operational, and customer experience aspects of a circular model, providing data-driven insights. We’ll track participation and the volume of clothing returned, and will provide insights into what it would take to scale the service nationally. These insights will contribute to the design and evidence base for a national coordinated circular clothing system for Australia. 

This pilot is one step in a much larger ambition: to facilitate and enable circular services and programs that are simple,accessible and part of everyday life. There’s genuine excitement across the value chain, with partners increasingly seeing how this concept could grow into a scalable service that transforms how clothing moves through the economy.