Victorian Environmental Approvals: What’s Changing in 2026 — And What It Means for Your Business

Victoria’s environmental obligations have shifted considerably in recent years, and 2026 is shaping up to be another year where expectations continue to rise. With the Environment Protection Act 2017 (EP Act) firmly established (and national reforms soon to influence state practice) businesses can expect a stronger emphasis on evidence, risk management and traceability across projects, transactions and operational decisions.

If you operate in Victoria, or are looking to acquire or redevelop a site, here’s what should be on your radar.

Victoria’s Regulatory Foundation: The EP Act

The EP Act remains the bedrock of environmental responsibility in Victoria. It sets out a proactive, risk based approach that shifts the focus from reacting to environmental harm to preventing it.

Some of the most important elements include:

1. The General Environmental Duty (GED)

• The GED requires anyone in management or control of activities to minimise environmental and human health risks “so far as reasonably practicable.” This is an ongoing duty that underpins how you operate, invest and plan.

2. Contaminated Land Duties

• The Duty to Notify and Duty to Manage compel duty holders to identify, respond to and communicate contamination risks. Updated EPA guidance makes clear what triggers these duties and how compliance should be demonstrated.

3. Updated Audit and PRSA System

• The modern audit system includes Preliminary Risk Screen Assessments (PRSAs) and updated environmental audits, both of which are tightly linked to planning decisions and site suitability. A planned land use change can quickly activate these requirements.
• Combined, these obligations shape how businesses must approach environmental risk.

Permissions, Licences and the Compliance Landscape

Victoria uses a risk-based permissions model for activities involving:

• Scheduled industrial and waste operations
• Emissions or discharges with higher risk profiles
• Chemical storage and handling
• For due diligence, this means reviewing:
• Whether the right permission type is in place
• Compliance with monitoring and reporting obligations
• Historical and current EPA notices
• Performance against the Environment Reference Standards for air, water, noise and land

Gaps here can meaningfully affect asset value, operating continuity and negotiation dynamics.

Contaminated Land: What Buyers and Proponents Must Test

Victoria’s contaminated land duties are among the most robust in Australia, and regulators expect businesses to understand and act on them.

A strong due diligence approach will examine:

• Whether contamination is known, suspected or inadequately characterised

• Whether Duty to Notify or Duty to Manage has been triggered
• The presence (or absence) of management plans, notifications or audit history
• Whether a PRSA or full environmental audit will be required for intended development
• The adequacy of controls such as monitoring, containment and access restrictions
• These checks help avoid the all-too-common scenario where contamination issues surface after purchase or during approval stages, when costs and delays are far greater.
   

How Federal Changes Will Influence Victoria

With the Commonwealth introducing National Environmental Standards and a new federal regulator, the impacts will ripple into state systems, including Victoria.

This means:

• More consistent national benchmarks
• Greater emphasis on ecological values and biodiversity impacts
• Closer examination of historical land use and clearing
• Stronger expectations for data quality and defensibility
• For businesses, it’s important to ensure your documentation, systems and due diligence processes can stand up to both Victorian and emerging national expectations.

What This Means for Due Diligence in 2026
Due diligence in 2026 will demand a far deeper level of scrutiny than in previous years. Regulators and investors alike will expect clear evidence of how legacy contamination has been managed, whether a site is genuinely suitable for its proposed use, and how well organisations have adhered to the licences and permissions that govern their operations. Waste, chemical and emissions controls will be examined more closely, along with the quality and credibility of historical environmental information.

Evidence-based risk assessments (aligned with the General Environmental Duty and national standards) are becoming the norm. This means assumptions, outdated reports or incomplete datasets will carry far less weight. Proponents and investors who arrive at the negotiation table with verifiable, traceable evidence will be at a significant advantage, while those relying on historic practices may face delays or reduced confidence from decision‑makers.

Practical Steps for Proponents and Investors
To navigate the 2026 regulatory landscape confidently, proponents and investors should shift toward a more proactive and structured approach. A full mapping of all relevant licences and permissions is essential, backed by verification that compliance extends beyond paperwork and into actual on‑ground practices. Contaminated land obligations also need early attention, ensuring any Duty to Notify or Duty to Manage triggers are identified before they become risks to the transaction or project.

Understanding planning triggers is equally critical. Before setting project timelines or budgets, organisations need clarity on whether a proposal will require a Preliminary Risk Screen Assessment or a full environmental audit. Early certainty on this point can prevent costly delays later in the process.
Closing data gaps should be a priority, particularly for older sites or locations with limited historical information. Targeted investigations can significantly reduce uncertainty and strengthen negotiations. With growing national alignment on environmental expectations, proponents should also ensure their assessments meet the level of robustness required under both state and federal frameworks, not just the minimum requirements within a single jurisdiction.

How PJRA Supports Victorian Projects and Transactions

Our team works closely with organisations across Victoria to deliver:

• EHS&S due diligence for acquisitions, divestments and investment decisions
• Permissions and licence compliance reviews
• Contamination assessments, PRSA scoping and audit coordination
• Risk based action plans tailored to operational and planning requirements
• We translate regulatory complexity into clear, practical pathways; giving you confidence in your decisions and helping you avoid costly surprises.

Learn more about how we can assist today

Giorgia McGuigan

Phone: 03 9690 0522

Email: giorgia.mcguigan@pjra.com.au