A record eight million kilograms of old paint and paint packaging was diverted from Australian landfill and waterways last year as part of a national recovery scheme.
But Paintback, which collects waste paint from 160 permanent locations across the country, says many people still do not know what to do with their leftover and waste products.
It says one in three Australians have paint stored away, and more than half are unaware how to dispose of it properly.
Through the Paintback process, unwanted paint is converted into an alternative fuel source replacing coal, or its water is extracted and used by other industries.
Paintback chief executive Karen Gomez said the scheme aimed to divert 90 per cent of unwanted paint into Australia's growing circular economy where products are re-used or repurposed.
"Paint already contributes to a circular economy by conserving and refurbishing a vast array of buildings and assets, but we are investigating new ways of putting unwanted paint into circulation and creating new markets," Ms Gomez said.
"We want household paint to become a showcase for the circular economy."
The Paintback scheme is funded by a 15-cent levy on each litre of paint.
In 2019/20 it recovered 8.1 million kilograms of product, compared to 6.2 million kilograms the previous year.