The Australian recycling industry is being weighed down by vastly different policies between states, the federal government says, as a ban looms on international exports of domestic waste.

On Thursday Trevor Evans, the federal Assistant Minister for Waste Reduction, said different states had taken “hugely divergent approaches” that in some instances were “fundamentally undermining” the creation of a strong onshore recycling industry.

Victoria is the only jurisdiction that does not have a container deposit scheme or any plans to introduce one. Credit:Joe Armao

He said there was a huge need for "harmonisation" in recycling policies between states.

The government has also indicated it may ask for greater amounts of recycled content to be used in infrastructure projects as a condition of federal funding.