In a significant environmental policy shift, the Australian Senate has passed sweeping reforms to the nation's nature laws following a deal between the Albanese government and the Greens. The legislation, running to hundreds of pages, represents the most substantial changes to environmental protection in decades.
Major Environmental Overhaul
The reforms to the Environment Protection and Biodiversity Conservation (EPBC) Act include crucial improvements to native forest logging scrutiny while introducing new fast-track assessment measures for certain developments. After extensive negotiations, the legislation secured Senate approval, marking a pivotal moment for Australia's environmental governance.
Seven Key Changes to Australia's Environmental Framework
1. New Federal Environmental Protection Agency
The cornerstone of the reforms establishes a national EPA operational by 1 July 2026. This new agency will enforce environmental laws and impose significantly higher penalties for serious breaches. The EPA will wield authority to issue stop-work orders of up to 14 days where violations are suspected. However, the environment minister retains discretion to either delegate project approval decisions to the EPA or make them personally.
2. National Environmental Standards
The legislation empowers the environment minister to create binding national environmental standards, implementing a key recommendation from the 2020 EPBC Act review. The effectiveness of these reforms largely depends on the robustness of these standards. Currently, two draft standards covering threatened species and biodiversity offsets have been released for consultation, with additional standards, including First Nations engagement, still in development.
3. 'Net Gain' and 'Unacceptable Impacts' Tests
Developers must now demonstrate their projects deliver an overall environmental benefit through 'net gain' requirements. Projects causing 'unacceptable impacts' will face refusal. Following industry feedback, the legislation tightened definitions, requiring that unacceptable impacts be 'certain to occur' rather than merely 'likely'.
4. Ministerial Powers and Limitations
Environmental advocates expressed concern about extensive ministerial discretion in the original bill. The Greens secured a crucial concession: coal and gas projects cannot receive 'national interest' exemptions from nature laws. However, concerns persist about language allowing the minister to approve developments merely by being 'satisfied' they comply with standards.
5. Streamlined Approvals and State Powers
The legislation introduces a streamlined 30-day project approval pathway, though this excludes coal and gas projects. States and territories will gain increased decision-making powers for developments, a key industry request. Under the Greens' agreement, the federal government retains responsibility for decisions involving the water trigger mechanism.
6. Closing Logging and Land-Clearing Loopholes
In a major environmental victory, native forest logging operations will lose their exemption from national laws within 18 months. These operations will become subject to national standards, unacceptable impacts tests, and EPA monitoring. The reforms also restrict agricultural land-clearing exemptions, requiring assessment for clearing vegetation older than 15 years.
7. Environmental Offsets Framework
The new system maintains a controversial 'restoration contributions fund' allowing developers to pay into a central fund rather than securing individual offsets. While some restrictions will apply to which species can be offset through this mechanism, details remain unclear. The reforms also relax previous 'like-for-like' offset requirements.
Implementation and Ongoing Scrutiny
A Senate inquiry will continue examining the legislation into next year, particularly scrutinising the proposed environmental standards. The complex implementation timeline sees various components rolling out through 2026, with the new EPA becoming fully operational by mid-2026. Environmental groups have welcomed the increased scrutiny of native forest logging while expressing ongoing concerns about potential loopholes and ministerial discretion in the new framework.
