EPBC Act reforms: Senate Committee recommendations

The Senate Environment and Communications Legislation Committee (Senate Committee) has released its report on the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) reforms. 

Although the suite of Bills was passed in November 2025, the Senate Committee continued its inquiry on the draft legislative instruments and on the first two draft National Environmental Standards (NES) – the NES for Matters of National Environmental Significance (MNES) and the NES for Environmental Offsets. Several of the Senate Committee’s 14 recommendations relate to these draft NES. 

Continuing an inquiry after the passage of legislation is unusual, albeit not unprecedented, and was considered warranted due to the size, significance, and complexity of the reforms. If the government accepts these recommendations, this will help refine how the reforms are applied when they come into effect.

This Insight summarises the key recommendations of the Senate Committee’s Report and provides an update on the rollout of the reforms.

National Environmental Standards recommendations

The NES are a key component of the reforms. The reforms allow the federal Minister for the Environment and Water (Minister) to make, vary and revoke the NES as legislative instruments. They also require decision-makers to apply them when making certain decisions under the EPBC Act, including whether to approve actions.

The Senate Committee made several recommendations concerning the NES:

• that revised drafts of the NES for MNES and the NES for Environmental Offsets be released for further public consultation; and 
   
• that the NES should include clear standards and benchmarks to allow the National Environmental Protection Agency to enforce compliance, including through the provision of case studies or examples.

In relation to the NES for Environmental Offsets specifically, the Senate Committee recommended that:

• further guidance should be provided on non-standard offsets, the application of the 'like-for-like' offset rule, and whether offsets may commence prior to the impacting action;
   
• feedback on proposed maintenance periods (25 to 100 years) and on how management rules will accommodate self-sustaining outcomes should be incorporated; and
   
• the principles, process, and quantum for calculating restoration contribution amounts payable to the Restoration Contributions Holder should be the subject of further consultation.

In relation to offsets, the Senate Committee further recommended that the State of the Environment Report should report on enduring conservation outcomes and the impact achieved through offset and restoration initiatives.

Other recommendations from the Senate Committee

• National interest approval pathway: The Senate Committee addressed concerns regarding the national interest approval pathway, which allows the Minister to approve controlled actions in the national interest, even where inconsistent with the NES or other requirements. Concerns centred on the potential misuse of this power to approve high-impact projects without a genuine national interest basis. The Senate Committee recommended that the Minister publish principles or guidance outlining the circumstances, factors and thresholds relevant to the exercise of this power.
   
• Decision-making: Several recommendations seek to improve transparency and accountability in decision-making. These include ensuring that statements of reasons allow interested parties to understand the legal, scientific and factual basis of the decision, and preparing a document that identifies the priority and relationship of materials that guide and inform decision-making under the EPBC Act. 
   
• Key Threatening Processes: The Senate Committee recommended developing a consistent approach for Key Threatening Processes, including guidance on identifying, listing and classifying key threats, preparation of threat abatement plans, and monitoring, reporting and reviewing processes. 

Despite its recommendations, the Report concludes that the EPBC Act reforms strike an appropriate balance between improving efficiency for business and industry and safeguarding Australia’s unique environment.

Update on EPBC Act reforms that have already commenced

A number of amendments to the EPBC Act commenced by proclamation on 20 February 2026, including the below. 

Reconsideration of ‘not a controlled action – particular manner’ decision (sections 79A-79D)

A proponent who has received a ‘not a controlled action if taken in a particular manner’ decision may now apply to the Minister for reconsideration where the proponent considers the identified manner is no longer appropriate for the action. The Minister must inform interested persons and invite comments before making a reconsidered decision. The reconsidered decision (NCA-PM reconsideration) is made under s 79C of the EPBC Act.

Ministerial determination that action may continue to be taken (new section 79E, and associated amendments to other provisions).

Where the Minister has revoked a ‘not a controlled action’ decision and substituted it with a ‘controlled action’ decision via a reconsideration determination after an action has already commenced, the Minister can make a written determination under s 79E that an action may continue to be taken, subject to conditions.

Surrender of approvals

New section 145AA now provides for a formal surrender process for unused approvals.

Approval process decisions

Section 158A defines ‘approval process decisions’ as decisions that are not affected by listing events (such as the listing of a new threatened species) once a referral decision under section 75 is made. This section has now been amended to include new decision types, such as a decision under section 79C (NCA-PM reconsideration), decision to vary an approval under section 146B (strategic assessment), and decisions relating to approvals under section 146B generally. 

Taking action in accordance with endorsed policy, plan or program under a strategic assessment

Part 10 of the EPBC Act facilitates the approval of classes of actions carried out in accordance with an endorsed policy, plan or program. Amendments to Part 10 of the EPBC Act allow the Minister to:

• exclude certain actions from approval under section 146B (section 146BA);
   
• vary conditions attached to a section 146B approval, and suspend, revoke, reinstate, transfer or accept the surrender of a section 146B approval (section 146DB-146DG);
   
• vary endorsed strategic assessment policies, plans or programs, including upon request (sections 146DH-146DL); and
   
• make determinations in relation to actions that are components of larger actions (section 146N).

Considerations for approving actions being taken under section 146B now include the principles of ecologically sustainable development, bioregional plans and bioregional guidance plans. For relevant actions, they also include taking advice from the Independent Expert Scientific Committee on Unconventional Gas Development and Large Coal Mining Development (IESC) (sections 146CA, 146F(2)).

National interest exemptions

The Minister may grant, vary, revoke or accept the surrender of a national interest exemption from provisions of Part 3. Grants, variations, and revocations can be made on the Minister’s initiative. They can also be made on the application of a proponent or holder of an exemption (sections 157H-157V).

Protection and conservation programs

A new Part 21A has been inserted into the EPBC Act. It allows the Minister to, by legislative instrument, prescribe one or more programs in relation to the protection, conservation, restoration or recovery of the environment, including in relation to the expenditure of Commonwealth money under such programs.

Indigenous Advisory Committee (IAC)

Various amendments have been made to expand the role of the IAC, including involving it in the nomination and listing process for threatened species and in the process of making, varying or revoking NES relating to engagement with Indigenous persons.

Next steps for EPBC Act reforms

Provisions in force since the reforms received Royal Assent on 1 December 2025 include the power for the Minister to make the NES, and high-risk tree clearing protections.

Further reforms to the EPBC Act are expected to commence on 1 July 2026. Notably, these include the establishment of two new federal agencies – the National Environmental Protection Agency and Environment Information Australia. The remaining reforms will take effect from 1 December 2026. 

The government’s response to the Report’s recommendations remains to be seen. However, momentum is building toward consultation on and finalisation of the NES. The remaining draft NES on First Nations engagement, community engagement and data and information were anticipated for release in the first half of 2026, however this process could now take longer in light of the Senate Committee’s recommendations for thorough, meaningful and ongoing consultation.