Under the ban, plastic cutlery, drink-stirrers and polystyrene cups will be outlawed in the territory from July 1 this year.

Plastic straws, plastic bags for fruit and vegetables and all products made from degradable plastic will be phased out next year.

Other single-use plastics such as plastic-lined coffee cups and lids, plastic dinnerware and heavyweight plastic bags are being considered for future phase outs from 2023.

Under the ban, businesses will face fines of up to $40,000 if they sell or distribute a so-called prohibited plastic product.

But ACT City Services Minister Chris Steel has emphasised the territory government would take an "educative approach" to compliance under the first stages of the ban.

"The ACT government has been working closely with business groups and the community over the past several years around the transition away from unnecessary and problematic single-use plastics," the minister said.

"This won't come as a surprise, people have had adequate time to change, and what this legislation does is create a level playing field for all businesses so that they're all doing the right thing and changing to alternatives."

Mr Steel said most Canberra businesses were already making the transition to being single-use plastic-free.

He said a hotline would be available from Tuesday for advice on alternative products and how to comply with the ban when it takes effect in July.

"We're not going to ban people supplying plastic cutlery at a picnic, but what we are banning is the supply by retailers, hospitality, businesses of those certain single-use plastics that have very clear alternatives already available," Mr Steel said.

Exemptions will be made to ensure people who need to use plastic straws will still be able to access and use them.

Despite Mr Steel's comments, ACT opposition city services spokeswoman Nicole Lawder told the Legislative Assembly she knew of some businesses who hadn't heard single-use plastics were going to be phased out.

She said the government could have consulted with more small businesses about the new legislation, and the cost to them of buying alternatives to single-use plastics would be passed onto the customer.

But, Ms Lawder said the Canberra Liberals were in support of the ban.

The ACT is the third Australian jurisdiction to pass laws banning single-use plastic, after South Australia and Queensland.

READ MORE:

As part of the legislation, the government will also have the power to declare public events, such as Floriade, major festivals and sporting matches, as single-use plastic-free.

This would be an Australian-first but any decision to declare an event single-use plastic-free would be in consultation with event organisers.

The National Retail Association's director of policy, David Stout, said the association welcomed the ACT's ban on single-use plastics.

"We commend the ACT government for their continued commitment to working with industry, community and the public to deliver environmental outcomes," he said.

The general manager of the Australian Hotels Association's ACT branch, Anthony Brierley, said the hospitality industry was excited to be part of the move away from single-use plastics.

"In the hospitality industry buy and large, a lot of our venues have already moved away from this - we've found alternatives," Mr Brierley said.

Mr Brierley said those who hadn't made the switch away from single-use plastics would catch up, and that was a good thing for business and the environment.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: