Major Federal EPBC Act Reform: What You Need to Know for 2026

Australia is heading into one of the biggest shifts in environmental regulation we’ve seen in decades. With the Environment Protection Reform Bill 2025 and six related Bills now passed, the Federal Government has begun reshaping how environmental risks are assessed, approved and enforced across the country.

These reforms form the next phase of the response to the Samuel Review, and they introduce clearer expectations, more consistency, and much stronger oversight. For businesses, the message is simple: the bar is rising; and now is the time to prepare.

Why These Reforms Matter

The new framework brings more structure and certainty to environmental decision‑making, but also raises expectations for evidence, data quality and due diligence. Whether you manage assets, plan new projects or engage in acquisitions, these changes will influence timelines, costs, and how regulators assess your risks.

Implementation is underway throughout 2026, with the full system maturing over the next few years.

National Environmental Standards: A New Baseline for Everyone

At the centre of the reform package are National Environmental Standards - binding rules that sit above individual project decisions.

These Standards will set clear expectations around:

• How environmental impacts must be assessed
• What data must be supplied
• How decisions must align with biodiversity, climate and cultural‑heritage outcomes
• The level of evidence required to justify approval

The Standards must also comply with the “no regression” principle, meaning the Commonwealth cannot weaken environmental protections, reduce data quality expectations or dilute consultation requirements.

For businesses, this means clearer rules, but also less room for poorly documented or reactive environmental management.

The New National Environmental Protection Agency (NEPA)

From 1 July 2026, enforcement will take a major leap forward with the launch of the National Environmental Protection Agency.

NEPA will be responsible for:

• Monitoring compliance with the EPBC Act
• Investigating breaches
• Issuing stop‑work orders
• Applying stronger civil and criminal penalties
• Overseeing environmental data accuracy
• Working alongside state and territory regulators

This is a major shift from the previous system, where the same department responsible for approvals also oversaw compliance.

For sectors with significant environmental footprint (resources, energy, manufacturing, agriculture, infrastructure) this change signals greater regulatory scrutiny and lower tolerance for gaps in documentation or past compliance issues.

Tighter Controls on Environmental Impacts

The latest reforms significantly reshape how environmental impacts are assessed and approved in Australia. A central change is the strengthened “unacceptable impacts” test, which makes it clear that actions likely to cause serious, irreversible or nationally significant harm will not proceed. This applies to biodiversity loss, climate‑related risks, critical habitat disturbance and impacts on cultural heritage.

Land clearing rules have also been tightened. Long‑standing continuation‑of‑use exemptions are being narrowed, meaning clearing activities that were once permitted by default may now require more rigorous assessment. At the same time, major and high‑risk projects (including mining, heavy industry and large infrastructure) should expect deeper scrutiny, more conditions attached to approvals, and more requests for detailed technical information.

More Transparent and Robust Assessments

The first stage of the reforms, already in effect since February 2026, focuses on making assessments more transparent, consistent and evidence‑based. The new framework introduces clearer approval pathways and stronger requirements for independent scientific advice. Engagement with First Nations communities is being strengthened, and regulators are prioritising better information sharing across agencies. Together, these changes aim to create more consistent and transparent decision‑making.

Additional reforms will continue rolling out through 2026–28, with the full system expected to be in place by late 2028.

What This Means for Environmental Due Diligence

For organisations acquiring assets, planning new developments or preparing for approval processes, these changes mean a noticeable shift in expectations. Regulators will now look for much deeper analysis across ecological values, historical land‑clearing patterns, emissions and climate‑risk profiles, cultural heritage considerations and any existing EPBC approvals or compliance issues.

Higher‑quality baseline data will be essential. Older surveys, limited sampling or minimal site information will no longer be considered adequate, particularly for complex or long‑operating sites. Robust ecological surveys, contamination assessments, emissions modelling and detailed site histories are becoming prerequisites rather than optional extras.

Timelines are also likely to lengthen. More prescriptive information requirements, greater emphasis on avoidance and minimisation (before offsets are even discussed), and approval conditions that are more specific and harder to vary will all contribute to extended assessment periods.

A Competitive Advantage for Those Prepared

While these reforms introduce more complexity, they also create an opportunity. Organisations with strong internal systems, reliable data and proactive environmental governance will navigate the new framework more smoothly. Those relying on outdated or incomplete information may face delays and higher compliance costs, whereas well‑prepared businesses can move through the approvals process with greater confidence and efficiency.

What Organisations Should Be Doing Now

To stay ahead of the reforms, PJRA recommends:

1. Review existing approvals and compliance records
   Identify where there are gaps, legacy risks or outdated conditions.
2. Assess exposure to biodiversity, land‑clearing and climate obligations
   Particularly where vegetation disturbance or habitat impacts may occur.
3. Align management systems with the National Environmental Standards
   Ensure your internal processes reflect where regulatory expectations are heading.
4. Integrate EPBC reforms into due diligence
   Update transaction scopes, timelines and risk registers accordingly.
5. Strengthen environmental data and recordkeeping
   High‑quality, defensible data will soon become non‑negotiable for approvals and compliance.

How PJRA Supports Clients Through the Transition

PJRA’s team works with organisations across Australia to understand how these reforms affect their operations, investments and projects. We provide:

• EHS&S due diligence for acquisitions and divestments
• Regulatory compliance assessments
• Gap analyses against ISO standards and approval conditions
• Ecological and land‑use risk reviews
• Strategic advice on aligning operations with the National Environmental Standards
• Support for project approvals and early‑stage risk screening

We help turn regulatory complexity into clear, practical steps, giving you confidence that you’re meeting your obligations and making informed decisions.

If you’d like to understand what these reforms mean for your business or project pipeline, contact the team at Peter J Ramsay & Associates.

Learn more about how we can assist today

Giorgia McGuigan

Phone: 03 9690 0522

Email: giorgia.mcguigan@pjra.com.au