A New Strategy for the NSW Fashion Industry
The New South Wales government has recently unveiled the NSW Fashion Sector Strategy, 2025–28, a comprehensive plan aimed at positioning the state as a global leader in high-quality, innovative, and inclusive fashion. Developed in collaboration with key partners such as the Australian Fashion Council, TAFE NSW, University of Technology Sydney, and the Powerhouse Museum, the strategy outlines a vision to boost the local fashion economy through targeted initiatives.
One of the most notable components of this strategy is the allocation of A$750,000 in funding to support local designers. The initiative also emphasizes the development of smart factories, skills training, and the creation of a fashion hub designed to nurture emerging talent. While these efforts are welcomed by industry stakeholders, they also highlight the complex challenges that the sector continues to face.
The State of Fashion in Australia
Australia has long been recognized for its high-quality, sustainable textiles and clothing. Despite the offshoring of many manufacturing capabilities since the 1990s, Australian wool and cotton remain highly sought after. Local small and medium-sized brands have taken the lead in producing sustainable and ethical fashion, making a significant contribution to the industry.
The fashion sector is a major employer, particularly for women. The $27 billion industry encompasses a wide range of roles, from designers to retailers, suppliers, and manufacturers, and employs nearly half a million Australians—77% of whom are women. However, recent years have seen the closure of several pioneering local sustainable fashion brands, including Arnsdorf, A.BCH, Nique, and Nobody Denim (which was acquired by Outland Denim). These closures underscore the difficulties faced by local brands in an increasingly competitive retail landscape.
The Rise of Fast Fashion and Its Impact
Since the 2010s, Australia has experienced a surge in fast fashion brands. The arrival of Zara in 2011, followed by H&M and Uniqlo in 2014, marked a turning point. This trend accelerated further with the introduction of ultra-fast fashion brands like Shein in 2021. As a result, the environmental impact has become increasingly concerning, with 220,000 tons of clothing ending up in Australian landfills annually.
Regulatory Responses Abroad and the Need for Action in Australia
In response to similar challenges, France has implemented new taxes on the import of ultra-fast fashion and banned influencer promotions of such products. These measures aim to protect the domestic fashion industry and reduce textile waste. The European Union has also introduced new rules requiring producers to take responsibility for the collection, sorting, and recycling of textiles.
In contrast, Australia’s approach to regulating the fashion industry has largely been voluntary or lacking in enforcement. While the Modern Slavery Act, introduced in 2018, requires companies with annual revenues over $100 million to report on modern slavery risks in their supply chains, compliance remains inconsistent. Many fashion brands fall below the revenue threshold and are not required to report, leading to concerns about the effectiveness of the legislation.
Emerging Initiatives and the Path Forward
Calls for more robust regulation continue to grow. The Australian Fashion Council launched Seamless in 2023, a voluntary initiative aimed at holding brands accountable for the entire lifecycle of their products. The program seeks to establish a circular fashion industry by 2030, with a 4-cent levy on each clothing item sold to fund sustainability programs.
Local brands such as Citizen Wolf and Madre Natura are pioneering innovative onshore manufacturing technologies and circular business models. Supporting these initiatives is crucial for the survival of sustainable fashion in Australia.
Looking Ahead
The introduction of the NSW Fashion Sector Strategy represents a positive step toward investing in the local fashion industry. With the right policies in place, Australia has the potential to develop one of the most creative and sustainable fashion industries in the world.
To achieve this, a more coordinated approach is needed. A whole-of-government strategy should focus on strengthening legislation to protect the industry. This includes implementing stricter penalties to prevent modern slavery in supply chains, introducing taxes on ultra-fast fashion, and enforcing regulations for circular-economy business models. Such measures could truly transform the industry and ensure a more sustainable future for fashion in Australia.
