Environment and Sustainable Development 5 Minute Fix 54: EPBC Act reforms, climate adaptation progress, and streamlined environmental legislation

The Environment & Sustainable Development team
24 Dec 2025
5 minutes

The Environment and Sustainable Development 5 Minute Fix is a snapshot of need-to-know news on a range of ESD issues nationally. This edition focuses on the latest in significant Federal law reforms to the EPBC Act; environmental law reforms in the ACT; WA's Climate Adaption Strategy; and Queensland's environmental protection law reforms.

Climate change

Commonwealth: EPBC Act reforms pass Parliament

The Commonwealth Government has successfully overhauled the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) having passed its substantial reform package which comprises seven Bills. The legislation gives effect to a number of Professor Graeme Samuel AC's review recommendations, and represents the most significant shift in federal environmental regulation since the EPBC Act's inception.

Key changes:

  • The Commonwealth Environment Minister will now have the power to make, vary and revoke legally enforceable National Environmental Standards which provide a framework outlining specific outcomes, objectives and/or processes that guide decision making.

  • Actions under the EPBC Act must generally satisfy three new tests: (1) consistency with any Standard, (2) the "unacceptable impacts" test and (3) the "net gain" test.

  • All residual significant impacts of an action on Matters of National Environmental Significance (MNES) must be offset or compensated such that the action results in a "net gain".

  • Projects that have unacceptable impacts on MNES cannot be approved under the EPBC Act.

  • For most proposed actions, there will be two assessment processes: Assessment on Preliminary Documentation; and a new Streamlined Assessment Process.

  • New bioregional plans are to be prepared which will help identify areas for development and inform the Minister's decision-making.

  • Enforcement has been strengthened through the National Environmental Protection Agency and increased civil penalties.

  • Requirement for proponents to disclose estimates for Scope 1 and 2 emissions and associated emissions mitigation measures.

  • Ministerial discretion to opine on the application of the law and subordinate legislation is informed by the new power to make rulings in particular circumstances.

Many of the specifics of the legislation are yet to be defined or clarified in subsequent rules and regulations. Some of the provisions commenced operation on 2 December 2025 (eg. to facilitate the making of the Standards) and the remaining provisions will come into effect in a staged manner in 2026. We will provide further updates on transitional arrangements and other matters next year. In the meantime, read our article here published at the time of the passing of the Bills.

ACT: Environment Legislation Amendment Bill 2025 has passed the ACT Parliament – Streamlined Standards and Stronger Safeguards

The ACT Government has passed the Environment Legislation Amendment Bill 2025 (ACT), which makes several targeted changes across the Environment, Planning and Sustainable Development Directorate.

The Bill has introduced technical and policy changes across several ACT laws, including Biosecurity, Nature Conservation, Energy Efficiency, and Water Efficiency Acts, to update the statute book and align with Federal reforms (like the EPBC Act), and support climate/environment goals. Key areas of reform involve streamlining environmental regulations, enhancing sustainability measures, and clarifying definitions for better management of the territory's environment and resources, and ensuring clarity and efficiency in the legislative framework.

The Bill inserts section 232A into the Biosecurity Act 2023 (ACT). This new section enables a regulation or instrument to apply, adopt or incorporate a law, standard or other instrument. Similarly, the Bill also amends the Energy Efficiency (Cost of Living) Improvement Act 2012 (ACT), to enable codes of practice made under the Act to apply, adopt or incorporate laws, Australian standards or other instruments. These amendments enable the efficient incorporation of relevant updates as instruments and standards evolve, eliminating the need for comprehensive legislative amendments on each occasion.

Importantly, any external documents incorporated under the new provisions must be made freely available for inspection at ACT Government offices or via an online link. This ensures transparency for stakeholders and the public, allowing them to easily access and understand the standards and obligations that apply to them. Furthermore, the Bill provides for transitional clauses to validate all standards and instruments already referenced in existing biosecurity regulations, thereby averting any regulatory gaps.

Finally, the Bill also amends the Nature Conservation Act 2014 (ACT) to strengthen its links with biosecurity powers. These changes expand existing exceptions and enforcement tools in Chapter 6 of the Act, including emergency and control declarations issued under the Biosecurity Act. This creates a coherent framework for responding to pest incursions or environmental emergencies.

For proponents, consultants and certifiers operating in the ACT, these amendments provide a regulatory environment that is more agile and transparent. Expect faster alignment with evolving Australian Standards, clearer obligations around energy efficiency measures and more robust biosecurity controls. In short, approvals and compliance pathways should become more predictable, while environmental safeguards are expected to be strengthened through greater Federal and Territory alignment and increased transparency.

WA: Two years after the adoption of the Climate Adaptation Strategy: How is WA adapting to the impacts of climate change?

In 2023, Western Australia's Department of Water and Environment Regulation launched its Climate Adaptation Strategy, aimed at building WA's resilience with respect to the ongoing effects of climate change.

The Two-Year Progress Report for the Strategy was recently released, tracking the progress of the 37 actions set to be implemented over the decade to actuate the Strategy.

The $40 million strategy was devised to equip Western Australian communities, the environment, and the economy to adapt to the changing state landscape resulting from the rapid acceleration of climate change effects. The strategy aims to achieve this by enhancing sector and community partnerships to coordinate action, build public sector climate capability, produce credible climate resources, and empower climate resilience including amongst first nations people.

The Strategy prescribes 37 actions implemented by 13 Government agencies to successfully meet the Strategy goals. The actions seek to develop policy and processes that actively implement climate considerations into everyday decision-making and ensure that WA communities are aware of evolving climate-related risks and can respond with mitigating actions.

The Report confirms that four of the 37 actions have been successfully completed since the initiation of the Strategy. These actions set out adaptation measures for climate risks pertaining to health and airport infrastructure for first nations communities, the strengthening of local government climate capacity and securing support for future coastal infrastructure. Actions currently in progress involve education and capability building initiatives within the public sector, the development of an Urban Greening Strategy for Perth and Peel, showcasing leading on-farm drought resilience techniques and supporting First Nations Ranger Programs with grant funding.

The Department's focus areas for the next 12 months include enhancing climate impact assessments and developing responsive policy, advancing the First Nations Climate Resilience Project, improving the accessibility of climate projections, and enhancing investment in urban greening and water security infrastructure.

Specifically, the Report confirms that the Department of Planning, Lands and Heritage is updating its suite of planning policies and strategies to incorporate climate change considerations and ensure land use planning decisions are more climate responsive.

It will be important to closely monitor and assess current and potential climate impacts to understand future risks specific to business operations, in order to aid in the implementation of the Strategy and the need to respond to ongoing climate related issues.

Environmental protection

Qld: Environmental Protection (Efficiency and Streamlining) and Other Legislation Amendment 2025 Bill Introduced

On 20 November 2025, following public consultation, the Queensland Government introduced the Environmental Protection (Efficiency and Streamlining) and Other Legislation Amendment 2025 Bill into Parliament. The Bill is intended to amend the Environmental Protection Act 1994 (EP Act), the Water Act 2000 and other legislation, with the aims of improving administrative efficiency and ensuring regulatory environmental frameworks remain contemporary, effective and responsive.

The amendments to the EP Act include establishing codes for low-risk Environmentally Relevant Activities (ERA) rather than regulating each ERA separately through environmental authorities (EA), removing duplication in the Environmental Impact Statement process, including removing public notification requirements, and providing for a consolidated list of significant environmental values to be prescribed by regulation. The Bill would allow impact assessment reports under the State Development and Public Works Organisation Act 1971 to satisfy the requirements for EA application processes.

The Bill would also amend the progressive rehabilitation and closure plans (PRCP) framework to incorporate the public interest evaluation process directly into the PRCP application process, and provide the administering authority with power to require audits of PRCP schedules when required, rather than audits being mandatory every three years.

The Bill would amend the Water Act to provide for a baseline assessment strategy within a Cumulative Management Area (CMA) underground water impact report (UWIR) and require subsequent UWIRs to be prepared within five years from the last approval. The Bill would also provide a reporting framework for all statutory obligations related to water bore data through the Office of Groundwater Impact Assessment.

Project proponents should consider the proposed amendments for relevance, particularly if developments involving ERAs or changes to EAs are proposed.

Special thanks to Lauren Smith (Sydney), Luke Salamone (Sydney), Sophie Robson (Sydney), Charlotte Baddeley (Brisbane), Ezekiel Lubbock (Brisbane) and Adriana Gough (Perth).

Disclaimer
Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.