New report shares insights into how Australia can keep unwearable clothing out of landfill

June 3, 2026
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What does it take to keep unwearable clothing out of landfill? The new ‘Pilot data and outcomes’ report brings together the findings from seven innovative Australian pilots delivered through the Seamless Circular Clothing Textiles Fund. The report provides practical insights into how clothing can be collected, sorted and recycled at scale, helping inform the design of an effective and feasible national clothing system.

Across seven pilots, different approaches were tested to collect, sort and recycle clothing that can no longer be worn. Together, they generated valuable data and insights into how the current system works, where the gaps and opportunities are, and what’s needed to build a national clothing system and address the 220,000 tonnes of clothing textiles that ends up in Australian landfill every year.

The report provides a comprehensive overview of the program of work, summarises the findings from all seven pilots, and shares key outcomes.

Download the full report, ‘Pilot data and outcomes from the Seamless Circular Clothing Textiles Fund’.

Key outcomes

The pilots informed five key outcomes for how unwearables can be collected, sorted and recycled in Australia. Together, they show how citizens behave, how collection systems perform, and what is needed across sorting, recycling and next markets to divert unwearable clothing from landfill.


Citizens are willing, but quality control must sit with the system

Australians are willing to dispose of unwearable clothing responsibly when convenient options are available. However, quality control cannot rely on citizens alone. Trials that asked people to separate wearable and unwearable clothing at the point of donation saw misclassification rates of 20–50%. Overall, citizen engagement is a clear strength, but systems must manage quality and sorting.


Collection can increase but the system is only effective if next markets are in place

Large volumes of clothing can be mobilised and collected quickly across multiple channels. System effectiveness will rely on having recycling capacity and committed next markets for recycled clothing textiles ready from the outset, so textiles flow through the system, and collected clothing isn’t stockpiled.


Sorting is the control point and must align with next markets

Clothing sorting is the critical control point and must be aligned with the requirements of recycling and next markets. Different sorting approaches serve different functions: manual sorting involves judgement-based decisions for resale and reuse, while technology-assisted and automated sorting improve throughput and fibre identification. Sorting should be matched to the intended textile output and related textile recycling specifications.


Open-loop recycling is an immediate solution

Open-loop recycling, where clothes are recycled into new, different products for use outside the clothing industry such as insulation, rags or stuffing for furniture, can process recycled clothing textiles at scale today. While markets are still developing, closed-loop recycling remains an important solution for the future to reduce reliance on virgin materials and associated emissions.


Next market development and supportive policy are essential for a functional circular system

Next markets for recycled clothing textiles currently exist. However, an effective system will require stronger demand for recycled textiles; investment in capability and infrastructure for clothing sorting, recycling and remanufacturing; and supportive measures and policy settings across the product lifecycle. These measures include circular procurement policies for uniforms, as well as eco-modulated stewardship fees for products that are made from renewable, recycled or safe materials and designed for high-value recycling.


Download the full report, ‘Pilot data and outcomes from the Seamless Circular Clothing Textiles Fund’, to explore the data and outcomes from the pilots in detail.

Looking for a quick overview? Download the ‘Pilot data and outcomes executive summary'.