A timeline to ban all domestic waste exports, including plastics, paper, glass and tyres, will be put in place following a deal struck at Friday's Council of Australian Governments meeting.

Leaders have agreed to work towards a set date while increasing efforts to turn more recyclable material into energy and use in building materials.

Prime Minister Scott Morrison said it was "one of the most practical areas" where the federal and state governments could work together.

The agreement comes amid growing tensions in the region over the issue, with Indonesia becoming the first South-East Asian nation to send contaminated plastic waste back to Australia. Nine containers have been sent back from ports in Batam and Surabaya to Melbourne and Brisbane respectively. Malaysia has also said it will send plastic waste back to Australia.