Cellophane cannot be recycled. It must be placed in the red or green lidded rubbish bin, where it will be sent to Landfill.
There’s some confusion around cellophane wrap – some is plastic and some is cellulose. A standard test for cellophane is the ‘tear test’; if you can tear it, it’s cellophane and can’t be recycled but can be put in your home compost bin. If it stretches, it’s plastic, and can be recycled as soft plastic at a RedCycle collection point outside branches of Coles and Woolworths.