Overview
The Australian Government has passed major reforms to the Environment Protection and Biodiversity Conservation (EPBC) Act 1999 that include establishing a new regulator, stricter environmental standards and a redesigned approvals system. The goal is to deliver clearer decision-making, stronger biodiversity protection and more consistent national rules. Most provisions begin from mid-2026.

Key Features of the Reforms

National Environmental Protection Agency (NEPA)

• Independent federal regulator for compliance, enforcement, audit and some approvals (removing ministerial discretion).
• Stronger powers: investigation, stop-work orders, enforceable undertakings, civil/criminal penalties.

National Environmental Standards (NES)

• Binding standards setting clear thresholds for biodiversity, offsets, restoration, culture and community engagement – used in all approvals and accreditation.

New Approval Pathway & Decision Tests

Projects must satisfy:

• Align with NES
• Avoid “unacceptable impacts"
• Apply mitigation hierarchy (avoid, minimise, repair, offset)
• Deliver net environmental gain if impacts remain.

Bioregional Planning – Go / No-Go Zones

• Federal mapping of zones where development can be fast-tracked vs restricted due to environmental sensitivity.

Sector-Specific Changes

• Exemptions for native forest logging and broadscale clearing to be phased out.
• Coal and gas projects cannot access fast-track “national interest” approvals.

Implications for Businesses

Opportunities

• More certainty and predictability via clear rules (NES) that reduces ad hoc decision-making.
• Faster approvals for low-impact projects in “development zones” and mapped corridors (renewables, transmission, housing).
• Reduced duplication between federal and state processes if state systems meet NES.
• Better risk visibility, allowing proponents to plan compliance, costs and timeframes earlier.
• Improved investor confidence especially in renewable energy, infrastructure and regional projects.

Risks & Challenges

• Higher approval thresholds and net gain requirements, increasing cost and complexity.
• Some projects may be blocked outright if found to have “unacceptable impacts,” regardless of offsets.
• Transitional uncertainty while NES, offset rules and regional maps are developed (2025–2026).
• More rigorous compliance and reporting obligations under NEPA especially for SMEs unfamiliar to federal processes.
• Stronger penalties and reputational risks for non-compliance including for supply-chain contractors.
• Loss of exemptions particularly for native forest operations, land-clearing agriculture and some fossil fuel projects.

Business NSW Position

Business NSW has welcomed the intent of major reforms to the Environment Protection and Biodiversity Conservation (EPBC) Act, noting improvements to approval certainty and environmental clarity, but warns that transitional uncertainty, higher compliance thresholds and potential cost burdens could impact investment, delay critical projects and strain small businesses.

Business NSW supports a more predictable, transparent and efficient approvals system provided proposed reforms:

• support investment certainty for housing, clean energy, infrastructure and advanced manufacturing
• do not impose excessive or duplicative burdens on SMEs
• recognise regional development priorities and economic value
• are implemented with practical tools, guidance and transition support for industry

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