Australia’s environmental legislation is set for a significant transformation following a landmark agreement between the Labor government and the Greens. This deal introduces a series of changes aimed at strengthening the country’s nature laws. The changes include the establishment of a federal environment protection agency, the introduction of national environmental standards, and the implementation of new tests for project impacts, among others. These reforms are expected to be operational by July 1, 2026, marking a pivotal shift in how environmental protection is managed in Australia.
Establishing a Federal Environment Protection Agency
One of the cornerstone changes is the creation of a national Environmental Protection Agency (EPA), fulfilling Labor’s primary environmental commitment. The new agency will be tasked with enforcing environmental laws and imposing higher penalties for serious breaches. It will also have the authority to issue stop-work orders for up to 14 days if breaches are suspected.
While the environment minister retains the option to delegate project approval powers to the EPA, the agency stops short of becoming an independent decision-making body. This setup mirrors existing arrangements where the minister can either make decisions personally or delegate them to the environment department.
Creating National Environmental Standards
The legislation empowers the environment minister to establish national environmental standards, addressing a key recommendation from a 2020 review of the Environment Protection and Biodiversity Conservation (EPBC) Act. The effectiveness of these laws largely depends on the robustness of these standards. To date, the government has released two draft standards for consultation: one focusing on matters of national environmental significance, such as threatened species, and another on biodiversity offsets.
Additional standards, including those related to First Nations engagement, are still under development. A Senate inquiry is set to continue into the next year, allowing for thorough scrutiny of the proposed standards.
Introduction of ‘Net Gain’ and ‘Unacceptable Impacts’ Tests
The new laws require developers to demonstrate that their projects result in a “net gain” for the environment, compensating for any damage caused. Projects deemed to have “unacceptable impacts” will be refused. This approach aims to ensure that environmental benefits outweigh the harm caused by development activities.
Prime Minister Anthony Albanese acknowledged industry concerns over the clarity of what constitutes “unacceptable impacts,” leading to amendments that specify such impacts must be certain, rather than merely “likely.”
Ministerial Discretion and Fast-Tracked Developments
Concerns have been raised about the extent of power granted to the environment minister in the original legislation, particularly regarding the approval of developments and the conditions imposed to protect ecosystems. A significant concession secured by the Greens ensures that the controversial exemption allowing the minister to approve developments in the “national interest” does not apply to coal and gas projects.
However, the legislation retains language that permits the minister to be “satisfied” that developments comply with the law, which has been a point of contention. Additionally, the new laws introduce a streamlined 30-day project approval pathway, though coal and gas projects are excluded from this fast-tracked process.
Logging Exemptions and Land-Clearing Loopholes
In a major victory for environmental advocates, the deal removes the effective exemption from national laws previously granted to native forest logging operations under regional forest agreements. These operations will now be subject to national standards, unacceptable impacts, and net gain tests, with oversight from the EPA.
The legislation also addresses a loophole in agricultural land-clearing, requiring assessment and approval for clearing vegetation older than 15 years and any land-clearing within 50 meters of waterways in Great Barrier Reef catchments.
Changes to the Offset Framework
Environmental offsets, which allow developers to compensate for environmental damage by restoring habitats elsewhere, are also undergoing changes. The government plans to introduce a “restoration contributions fund,” where developers can contribute financially instead of securing offsets themselves. While restrictions on what species and “protected matters” can be offset through this fund are anticipated, specific details are yet to be disclosed.
This development represents a shift from the previous “like-for-like” rules, which required offsets to benefit the same species or ecosystem affected by a development.
These legislative changes mark a significant step forward in Australia’s approach to environmental protection. As the country grapples with the challenges of balancing development and conservation, these reforms could set a precedent for future policy directions. With ongoing scrutiny and adjustments, the impact of these changes will unfold in the coming years, shaping the nation’s environmental landscape.
