If you run a restaurant, café, hotel, supermarket, school, university, hospital, or any food-handling facility in New South Wales, you may now be legally required to separate food waste under the NSW EPA’s FOGO mandate.
From 1 July 2026, businesses that generate high volumes of waste must have a compliant food organics system in place.
This guide explains what the law requires and how to set up a compliant waste system using the right pedal bins, waste stations, wheelie bins, and waste signage.
Do You Need to Comply with the FOGO Mandate?
Most businesses underestimate their waste volume. A simple way to check:
- If your bins are regularly full before collection
- If you increase pickups during busy periods
- If your waste stream contains a noticeable amount of food waste (typically 20–40% in most food-handling businesses)
As a practical guideline, most hospitality, supermarket, healthcare, and institutional sites generate 20–40% food waste. A well-designed FOGO system should aim to separate at least ~25% of total waste into the green organics stream.
This is not a compliance threshold, but a recommended operational benchmark to ensure your system is effective, reduces landfill volume, and improves waste efficiency.
As a rule of thumb, most hospitality, supermarket, healthcare, and institutional sites generate 20–40% food waste. This means a dedicated green organics stream is not optional, it is operationally required.
Many businesses will also need to increase organic waste collection to at least weekly to avoid overflow, odour, and contamination issues.
FOGO Compliance Thresholds (NSW EPA)
The mandate applies based on your total weekly general waste bin capacity:
From 1 July 2026 (Large Generators)
- ≥ 6 x 660L bins per week
- OR ≥ 16 x 240L bins per week
- OR ≥ 3,960L total weekly capacity
If you meet this threshold, compliance is mandatory now.
From 1 July 2028 (Medium Generators)
- ≥ 3 x 660L bins
- OR ≥ 8 x 240L bins
- OR ≥ 1,980L total
From 1 July 2030 (All Businesses)
- ≥ 1 x 660L bin
- OR ≥ 3 x 240L bins
- OR ≥ 720L total
This final stage captures almost every food-handling business in NSW.
Businesses Captured Under the FOGO Mandate
The legislation applies to any premises where food is prepared, served, or handled at scale, including:
- Supermarkets and grocery stores
- Restaurants, cafés, takeaways, pubs, and bars
- Hotels, motels, and accommodation venues
- Hospitals, aged care, and health facilities
- Schools, universities, TAFE and childcare centres
- Food courts and dining precincts
- Correctional facilities and large institutions
- Mobile catering businesses (production sites)
If your site prepares or serves food daily, you should assume this legislation applies.
Even residential buildings using commercial waste services will be included from 2030 where bin capacity exceeds 660L per week.
Will FOGO Reduce Your Waste Costs?
Yes in most cases, implementing a FOGO system will reduce your overall waste expenses.
Food waste is heavy and makes up a significant portion of general waste. When it is removed from your red general waste stream:
- You reduce the volume of general waste sent to landfill
- You may be able to downsize general waste bin capacity
- You can reduce collection frequency for general waste
Landfill (general waste) is typically the most expensive waste stream. By diverting 20–40% of your waste into a dedicated green organics stream, many businesses see immediate cost improvements.
At the same time, organic waste collections are often more efficient and predictable when separated correctly, reducing contamination charges and rejected loads.
In practical terms: businesses that implement proper bin systems, signage, and separation at the source often lower total waste handling costs while improving compliance.
This means the right setup of pedal bins, waste stations, and wheelie bins is not just a compliance requirement, it is an operational cost decision.
The Four-Stream Waste System
A compliant system uses colour-coded streams:
- Green: Food organics (FOGO)
- Yellow: Mixed recycling
- Blue: Paper and cardboard
- Red: General waste
Using consistent colour-coded waste separation stations improves accuracy and reduces contamination across your facility.
Best Bin Setup for Compliance
Kitchen & Prep Areas
Install green and red commercial pedal bins at every workstation. Hands-free operation is critical for hygiene compliance.
Staff Areas & Offices
Use a full four-stream waste station to cover all waste types in one location.
Public Areas
Install clearly labelled multi-stream stations to guide customers and reduce contamination.
Loading Docks
Use large wheelie bins (240L or 660L) for collection and contractor servicing.
Why Signage Is Critical
Clear signage is a requirement under NSW EPA guidelines. It ensures correct disposal and reduces contamination rates.
Effective waste signage should include:
- Colour-matched stream headers
- Clear icons for quick decisions
- Accepted and rejected item examples
Penalties for Non-Compliance
Failure to comply can result in:
- Fines up to $500,000
- $50,000 per day for ongoing breaches
- On-the-spot fines up to $5,000
The EPA has indicated initial education periods, but enforcement applies where businesses have not taken reasonable steps. AdMerch supplies commercial-grade solutions to help you meet FOGO requirements:
- Step pedal bins for food-safe disposal
- Waste recycling stations for multi-stream setups
- Wheelie bins for high-volume collection
- Waste signage for compliance
Frequently Asked Questions
What is a FOGO bin and why is it required?
A FOGO bin is a dedicated green bin used for collecting food organic waste separately from general waste. The NSW EPA mandate requires businesses to divert food waste from landfill to reduce environmental impact and improve resource recovery. Food waste in landfill produces methane, a high-impact greenhouse gas, which is why separation is now regulated. In practice, a FOGO bin allows food scraps to be processed into compost or renewable energy. Businesses must implement this system to remain compliant with state waste targets. The requirement is not optional, and inspectors may assess bin setup, signage, and contamination levels during audits.
How do I set up a compliant FOGO waste system?
A compliant system requires bin infrastructure at every waste generation point. This includes green organics bins in kitchens, multi-stream stations in shared areas, and wheelie bins at collection points. Each stream must be clearly colour-coded and supported with signage. The most effective setup includes pedal bins in prep areas, recycling stations in offices and dining areas, and large wheelie bins for back-of-house collection. Signage must reinforce correct usage, especially for common problem items like coffee cups and food packaging. Consistency across all areas is critical to reduce contamination and meet compliance standards.
What size bins do I need for FOGO compliance?
Bin size depends on your waste volume and location within the site. For kitchens and prep areas, 20–30L pedal bins are ideal for daily use, allowing frequent emptying and maintaining hygiene standards. For collection points, 240L wheelie bins are the standard for most businesses, while larger facilities may require 660L bins depending on waste output and collection frequency. The goal is to minimise overflow while ensuring bins are not underutilised. Conducting a waste audit or reviewing your current bin usage can help determine the correct sizes.
Do I need signage on all bins?
Yes, signage is a key compliance requirement. Every bin should have clear identification, and larger stations should include posters showing accepted and rejected items. This reduces confusion and contamination. Without signage, even well-designed systems fail because users rely on visual cues to make quick decisions. In high-traffic environments like food courts or offices, signage is essential for guiding behaviour. Inspectors may also check for adequate signage as part of compliance reviews, so it is not something businesses can overlook.
Can FOGO systems improve workplace efficiency?
Yes, a well-designed FOGO system improves workflow and reduces handling time. With clearly placed bins and consistent colour coding, staff can dispose of waste quickly without second-guessing. This is especially important in fast-paced environments like commercial kitchens. It also reduces double handling and sorting later in the process. When waste is separated correctly at the source, collection and disposal become more efficient. Over time, businesses often see reduced waste costs, improved hygiene, and better compliance outcomes.
