EPBC Reform: A New Leaf for Environmental Regulation

In the final sitting week of 2025, the Albanese Government introduced its long awaited environmental reform package to the Senate.

After weeks of protracted negotiations with both the Coalition and the Greens, the Government struck a deal with the latter to secure support for its package of seven bills. This marked the successful conclusion of a lengthy legislative process.

Join Nexus APAC as we examine the key moments in the Albanese Government’s effort to modernise Australia’s environmental laws.

Background

The Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act) is Australia’s primary environmental legislation. It provides the legal framework for protecting matters of national environmental significance, including threatened species, ecological communities and heritage places. The Act is triggered when a proposal is likely to have a significant impact on these matters.

In October 2020, then Environment Minister Hon Sussan Ley MP commissioned Professor Graeme Samuel AC to conduct an independent review of the EPBC Act. The Samuel Review found the Act outdated and ineffective, recommending fundamental reform. Its centrepiece was a set of National Environmental Standards with clear, enforceable outcomes to guide all decisions under the Act.

Ahead of the 2022 Federal Election, Labor pledged to respond fully to the Samuel Review, reform the EPBC Act and establish an independent national environment protection agency.

The First Attempt

In the first Albanese term, Hon Tanya Plibersek MP was appointed Minister for the Environment and Water. In December 2022, the Government released its response, the Nature Positive Plan, with Minister Plibersek declaring Australia’s environment laws “broken” and committing to rebuild them around clear national standards, faster decisions and greater integrity.

The Government aimed to legislate by the end of 2023. However, only two reforms met this deadline:

Legislation underpinning the Nature Repair Market
Expansion of the water trigger to include unconventional gas development

In April 2024, Minister Plibersek announced a second stage of reforms and, in May, introduced bills to establish Environment Protection Australia (EPA) and Environment Information Australia (EIA). These agencies were designed to enforce standards and provide environmental data to support approvals.

In the 2024-25 Federal Budget, the Government also committed $40.9 million to implementing the Nature Positive Plan, predominantly focusing on the establishment and administration of the Nature Repair Market component. This also included $5.3 million in additional funding to progress legislative reforms.

After passing the House, the bills appeared set for Senate approval following a deal with Senator David Pocock and the Greens in November 2024. However, after discussions with WA Premier Hon Roger Cook MLA, Prime Minister Hon Anthony Albanese MP informed Greens leaders the bill would not proceed.

It was speculated that the decision to delay these reforms was largely due to political resistance from Western Australia. The state’s cautious stance stems from the rapid repeal of its Aboriginal Cultural Heritage Act 2021, just five weeks after commencement, due to concerns it was too complex and burdensome for property owners.

In regard to EPBC reform, Premier Cook said in April 2024 that Western Australia and its mining industry would be disproportionately affected by the changes to the development assessment process and urged the Federal Government to consider staging the reform.

This outcome was also attributed to inadequate industry consultation and limited stakeholder buy-in during the development of the legislation.

New Departmental Secretary

Following the 2025 Federal Election, Mr Mike Kaiser was appointed Secretary of the Department of Climate Change, Energy, the Environment and Water, commencing in July 2025.

Mr Kaiser is an experienced public servant who was previously Director General of the Queensland Department of Premier and Cabinet.

Alongside the EPBC reform process, Mr Kaiser and the Department have focused on progressing practical regulatory improvements to boost productivity while strengthening environmental outcomes. These include promoting greater use of the existing rapid assessment pathway in the EPBC Act, and partnering with other Australian environmental regulators to reduce duplication.

Most recently, Mr Kaiser joined an industry roundtable in November to discuss the challenges and opportunities within the current and proposed EPBC framework.

Minister Watt’s Win

Following the 2025 Federal Election, Senator the Hon Murray Watt was appointed Minister for the Environment and Water in the second-term Albanese government.

Minister Watt is regarded as an effective fixer and negotiator, and his appointment reflected the Government’s prioritisation of EPBC reform in their legislative agenda. As Minister for Agriculture, Fisheries and Forestry in the first-term Albanese government, he was instrumental in ending the live sheep export trade.

According to Minister Watt, his main task was “to shepherd through reforms to the EPBC legislation”. Following his appointment, he consulted extensively, having held over 40 meetings, roundtables and forums with environment, resources, energy, property and other business groups by the end of August 2025.

His approach has emphasised a balance between sustainable economic development and environmental protection, and he has been clear that compromise will be required from all for the reforms to succeed.

In the leadup to the final sitting week of 2025, Minister Watt negotiated with both the Greens and the Coalition to ensure the passage of reforms, which were introduced in one complete package of seven bills.

The Coalition’s concerns included:

The proposed EPA lacking authority over project assessment and approval
Ambiguity around a provision allowing the minister to reject projects upfront if deemed to have ‘unacceptable impacts’
Insufficient detail on the new ‘net gain’ requirement, which obliges proponents to offset environmental damage such that projects result in an overall environmental benefit
Significant penalties under the laws, with potential fines reaching $825 million based on company turnover
Mandatory emissions reporting for project approvals, raising fears this could act as a de facto trigger to block projects over climate impacts

On the other hand, the Greens’ key asks included additional protections for native forests and the introduction of a climate trigger.

In October 2025, prospects dimmed when both the Greens and Coalition referred the 1,500 page package to the Environment and Communications Legislation Committee for inquiry and report by March 2026.

Yet, by the end of the sitting week, the Government secured Greens support, ending 2025 on a high note.

Key Concessions

To gain the support of the Greens, the Government made the following key changes:

Excluding coal and gas projects from the streamlined approval process and the national interest provisions
Retaining federal oversight for decisions related to the water trigger, rather than delegating them to states and territories
Eliminating exemptions for high-risk land clearing and regional forest agreements
Preserving the Environment Minister’s authority to approve projects, even after decision-making powers have been transferred to state and territory governments

Overview of Reforms

Key environmental measures in the reform package include:

The establishment of the EPA with enforcement powers such as penalties and Environmental Protection Orders (including stop work orders)
Giving the Environment Minister the power to create National Environmental Standards
Requiring proponents of large emitting projects to disclose their greenhouse gas emissions and their emission reduction plans
Introducing new ‘net gain’ and ‘unacceptable impacts’ requirements

To speed up decision-making for business, the following measures were also introduced:

A new Streamlined Assessment Pathway
New and improved bilateral with states to remove duplication for the assessment and approval of projects
‘Go’ and ‘no go’ zones to provide planning certainty at a landscape scale rather than project-by-project assessment
Clarifying definitions of ‘unacceptable impacts’ and ‘net gain’
Restraining the operation of Environmental Protection Orders

Implementation throughout 2026 will be critical. Passing legislation is only the first step; the real challenge lies in how effectively these reforms are delivered.

The Government must build new regulatory systems, establish the EPA, and introduce National Environmental Standards, a critical component of the new regime.

Industry and environmental groups will be watching closely. Success will depend on achieving a careful balance between economic growth and environmental protection.

What is certain is that this landmark reform will shape Australia’s environmental and economic future for decades to come.

Stay tuned for more Nexus APAC insights as we continue to track the issues that matter most in Canberra.