The change comes less than a week after the law was passed, following objections from small business groups, including the Australian Association of Convenience Stores, who warned it could inadvertently apply to service stations and convenience stores.
"We've listened to the concerns raised by small businesses about reusable coffee cup reforms, and we're making changes to give them certainty and confidence," Sharpe said. She confirmed cafes will not be required to offer a mug or glass to dine-in customers, and that the government will not mandate any reusable cup schemes.
Under the amended legislation, which still phases out a range of single-use plastics over coming years, takeaway coffee cups will not be banned but must be made recyclable by 2028. From that year, cafes must accept clean reusable cups such as KeepCups from customers for takeaway orders.
Theo Foukkare, chief executive of the Australian Association of Convenience Stores, said the original wording risked forcing 24-hour service stations to provide reusable cups. "Who's washing the cups?" he asked.
Other measures in the law include an immediate ban on the mass release of balloons, a ban on plastic lollipop sticks and plastic bread bag ties, a requirement for lids to be tethered to plastic bottles, and a ban on plastic microbeads in beauty and cleaning products.
The state's opposition Liberal Party has vowed to repeal the law entirely if it wins government.
NSW generated about 891,000 tonnes of plastic waste in 2022-23, only 14 per cent of which was recycled. Nearly 800 million single-use coffee cups are used in the state each year, most discarded after minutes.