Federal environmental reform: recasting the EPBC Act
- Overview
- Timeline of key dates
A new future for Australian environmental law
The Australian Parliament has now passed the most significant reforms to the Environment Protection and Biodiversity Conservation (EPBC) Act in more than 20 years. These changes are designed to unlock housing, accelerate renewable energy projects and secure critical resources, all while maintaining strong environmental protections.
Latest updatesThe Environment Protection Reform Act 2025 (EPR Act) commenced (in part) on 1 December 2026. The bulk of the EPR Act and related legislation to reform the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act) will not commence until likely mid-2026. A number of important amendments were made to the package of reforms in the Senate, including those negotiated with the Australian Greens. Key amendments include:
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What’s driven the reform?
Current approval processes are slow, complex and inconsistent. Project proponents face lengthy and unpredictable timeframes, duplication across state and territory systems, and resourcing constraints that stall progress. The new legislation aims to fix this by creating a system that is:
- Faster: reducing delays and streamlining assessment processes
- Clearer: improving transparency and consistency in decision-making
- Better coordinated: aligning federal, state and territory processes.
The stakes are high
Without proper funding and strong coordination between governments, the reforms risk failing to deliver the step change needed. Getting this right is critical to restoring investor confidence and unlocking the pipeline of housing, renewables and resource projects that underpin Australia’s economic ambitions, while simultaneously ensuring improved protections for the environment.
What do the reforms mean for me?
Transitional provisions
The EPR Act includes transitional rules that determine whether the current or new provisions apply to your project. Here’s what you need to know:
Existing approvals
If you already hold an approval, you can continue to act on it. If you seek to vary that approval, the Minister will consider the strengthened requirements for decisions about threatened species and ecological communities and Ramsar wetlands (with limited exceptions). However, new tests such as net gain and unacceptable impacts will not apply.
Actions already referred
If you have referred an action and received a controlled action and assessment decision, your assessment will proceed under the existing EPBC Act.
If the Minister has not decided the assessment approach before commencement, the new environmental assessment approach will apply.
New referrals
If you haven’t started the referral process, you can choose to refer now under existing laws or wait to submit and be assessed under the amended Act after commencement. If you refer now but later see benefits in the new regime, you can withdraw and reapply under the amended Act.
Grandfathering provisions
Section 43A remains unchanged, meaning that actions with prior authorisation will continue to be exempt from EPBC approval.
However, the EPR Act inserts new subsections 43B(2A)–(2B), which amend grandfathering for actions which are a continuation of a use of land. Grandfathering under s43B is no longer available where:
- the action involves clearing vegetation from land within 50 metres of a watercourse, wetland or drainage line in a catchment area of the Great Barrier Reef Marine Park; or
- the action involves clearing vegetation from land and the land has not been cleared of vegetation for 15 years (and the action is not a forestry operation).
Exceptions and special cases
While most new provisions apply to actions referred after commencement, some powers and obligations extend to earlier actions. For example:
- Environmental Protection Orders (EPOs) may be issued for contraventions before commencement.
- Proponents may start minor or preparatory works before commencement.
- Certain powers, such as applying to surrender an approval, may apply to approvals granted before commencement.
Bottom line: the transitional rules are complex and vary by circumstance. Proponents should review requirements case-by-case to ensure compliance and take advantage of strategic options.
Understanding the reforms: key topics explained
National EPA (NEPA)
A new, independent National Environmental Protection Agency. The CEO of the NEPA will be a statutory appointment and not subject to direction by the Minister. The CEO of the NEPA will be given a number of responsibilities under the Act, including compliance and enforcement functions, assurance of accreditation arrangements and the issuing of new enforcement tools such as environment protection orders.
Environment Information Australia (EIA)
A new function within the Department is to be headed by an independent statutory officer and is to be focused on the management of environmental data. The EIA would provide national leadership for the improvement of the availability and accessibility of high-quality, national environmental data and information, and ensure there is independent reporting and accountability for the state of the environment.
National Environmental Standards (NES)
A framework to establish legally enforceable National Environmental Standards that are intended to set the boundaries for decision-making to deliver the minimum protections to be achieved under the Act. These are intended to be subordinate legislation and will initially relate to matters such as the existing Matters of National Environmental Significance and environmental offsets.
Streamlined assessments and approvals
To remove certain lower-tier assessment pathways (such as assessment on referral information and public environment reports) and replace them with a 'streamlined assessment' pathway, intended to result in faster approvals timeframes. The EPR Act also introduces a number of new tools to enable the Minister to ensure the protection of the environment, including 'Rulings' and 'Protection Statements' about how the Act should be interpreted and protections implemented.
Strategic assessments
Strategic assessments under Part 10 are retained, with new flexibility proposed, including to allow for the relevant policy, plan or program to evolve without necessarily requiring a new strategic assessment to be undertaken.
Bioregional plans
A new concept of bioregional assessments, allowing for broad-scale assessments to be undertaken to establish 'development' and 'conservation' zones, with 'priority actions' in development zones not to require further assessment and approval.
Biodiversity offsets and net gain
A new concept of passing the 'net gain' test will apply to compensate for significant residual impacts on protected matters. This can be achieved either by the proponent compensating for damage by securing an environmental offset, or by paying a restoration contribution charge in respect of the residual significant impact (unless the Minister has declared that a restoration contribution charge is not available for the relevant MNES).
First Nations engagement
Requirements for consultation with First Nations peoples are not included in the EPR Act, however new requirements are to be proposed through a National Environmental Standard consistent with the approach recommended in the Samuel Review.
Climate change
No 'climate trigger' is included. Instead, the EPR Act requires certain proponents to disclose greenhouse gas emission information and reduction plans—this is anticipated to apply at least to facilities covered by the Safeguard Mechanism. This information is intended to be made available for transparency purposes only and will not inform decisions under the EPBC Act.
Penalties, merits review and third-party enforcement
Increased enforcement powers and, for certain large turnover body corporates, much higher maximum penalties for certain civil penalty provisions apply up to $825 million.
Unacceptable impacts
A redefined concept of an 'unacceptable impact', which varies for each protected matter. If an action has an unacceptable impact, the Minister must not approve it. Similar restrictions apply to other decisions made under the Act (eg to approve a regional plan, or when accrediting states/territories' assessment and approval powers).
Accreditation of states/territories for approval decisions
Various changes to the existing accreditation processes, placing a greater emphasis on the role of accredited state and territory processes to issue 'one-touch' approvals without the need for duplicative assessment by the Government.
National interest proposals and exemptions
The reforms introduce a strengthened national interest pathway, giving the Minister broad discretion to approve projects that serve Australia’s strategic priorities (noting that these exemptions are not available for fossil fuel actions). Under this approach, a project may proceed even if it conflicts with NES, has unacceptable impacts or fails the net gain test, where it is declared critical to Australia’s defence, security or international obligations. At the same time, refinements to the existing exemption mechanism allow the Minister to dis-apply certain controlling provisions for protected matters, while imposing conditions and prescribing requirements to limit adverse impacts. Together, these changes create a more flexible framework for projects of national significance, balancing strategic imperatives with environmental safeguards.
Restoration fund
Proponents will be able to discharge their offset compensation liability (including under the new 'net gain' framework) by paying a restoration contribution charge to the Government. The money provided under this charge will be spent by a new independent Restoration Contributions Holder, supported by an expert advisory committee.
'Minor or preparatory' works
Authorisation to commence minor or preparatory works for an action after referral and before an approval has been issued. The Minister may also provide written agreement for other works that may commence.
Lapsing of not controlled action decisions
NCA and NCA-PM decisions will lapse after five years if the action has not 'substantially commenced'. The five-year period may be extended once by the Minister for a further period of up to five years (the total maximum being 10 years, lapsing from the date of the initial decision).
'Grandfathering' arrangements
Actions that are a lawful continuation of a use will no longer be exempt from approval if they involve clearing of vegetation from land within 50 metres of a watercourse, wetland or drainage line in a catchment area of the Great Barrier Reef Marine Park or the land has not been cleared of vegetation for at least 15 years (and the action is not a forestry operation).
Regional Forest Agreements
The exemption from approval for actions undertaken in accordance with an RFA will sunset on 1 July 2027.
Key issues to watch
The EPR Act will amend the EPBC Act to establish a platform of supporting instruments and standards, including the following:
- National environmental standards
- Ministerial and CEO rulings
- Protection statements for listed threatened species and listed threatened ecological communities
- Bioregional plans
- Strategic assessments
- Bilateral agreements.
These documents will provide critical information to support the implementation of the reforms.
