Environment and Sustainable Development 5 Minute Fix 60: new Cth regulator, NSW asbestos, Murray-Darling Basin Plan review

Commonwealth

Commencement of the National Environmental Protection Agency

Tranche 2 reforms to the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act) took effect on 1 July 2026.

The centrepiece of Tranche 2 is the establishment of the National Environmental Protection Agency (NEPA), Australia's first independent Commonwealth environmental regulator under the EPBC Act. The NEPA will hold administrative and enforcement powers, with its CEO responsible for compliance, environmental permits and licences, and monitoring of accreditation instruments and bilateral agreements. Although the Minister retains primary decision-making authority, the Minister has broad discretion to delegate EPBC Act powers to the NEPA.

The NEPA CEO has the power to issue Environment Protection Orders, effectively a stop work order, where there is an imminent risk of serious environmental damage. Maximum penalties are also increasing significantly, with civil penalties of up to $16.5 million for a body corporate and criminal penalties of up to $1.65 million for a body corporate. 

New audit arrangements, including compliance audits that require no prior notice or threshold grounds, will provide the NEPA new approval oversight powers. The reforms also introduce a mechanism allowing proponents to seek ministerial agreement to undertake minor or preparatory works while a controlled action assessment is underway. 

Proponents subject to, or likely to be subject to, the EPBC Act should take proactive steps now to understand the reformed framework, assess their exposure to the new penalty regime, and ensure their environmental management systems align with the NEPA's expectations. 

For more information, refer to our earlier article: EPBC Act reforms and national EPA commencing soon: what proponents need to know from 1 July 2026 – Clayton Utz 

NSW

NSW Government releases Asbestos Plan of Action

The NSW Government has released its Asbestos Plan of Action and announced a two-year trial starting in 2027 which will allow NSW households to have asbestos waste picked up and disposed of for free.

The Action Plan provides a comprehensive response to the nine recommendations made by the Office of the NSW Chief Scientist and Engineer (OCSE) to guide the management of asbestos, delivered in its final report in December 2024. The actions are designed to implement a risk-based, through-chain approach to asbestos management in recovered construction and demolition (C&D) waste material through four focus areas:  

• strengthening requirements on C&D waste generators to identify, remove, and properly dispose of asbestos;  

• enhancing oversight of the transport of suspected asbestos waste;  

• improving risk management at waste facilities, including by establishing clear asbestos thresholds for recovered material products; and  

• implementing complementary actions to support the new framework. 

In the short term, key actions include promoting intrusive asbestos surveys as best practice for detecting asbestos prior to demolition and renovation projects and reviewing opportunities to align definitions of asbestos across NSW legislation.  

In the medium to long-term, there will be a focus on strengthening planning controls for asbestos management in specified development, including: 

• strengthening planning controls for asbestos management in specified developments, including updating requirements for complying development to ensure that post-demolition checks confirm proper asbestos removal and disposal;  

• introducing a requirement that exempt development involving minor alterations must not cover or clad asbestos-containing material;  

• reviewing environmental protection licensing thresholds in the Protection of the Environment Operations Act 1997 (NSW) for resource recovery and waste processing to reflect current risk levels; and 

• introducing requirements for assessing C&D waste for asbestos at key points in the value chain, performed by accredited waste classifiers, and establishing an accreditation scheme.  

The Government has committed to ongoing co-design and consultation with affected industry stakeholders. The Action Plan complements the NSW Asbestos Coordination Committee's NSW Asbestos Delivery Plan which addresses waste disposal issues through to 2030.

Victoria

2026 Murray-Darling Basin Plan Review – What We Heard Report  

The Murray-Darling Basin Authority (MDBA) has released the What We Heard Report that summarises feedback received during the 12-week public consultation on the review of the Murray-Darling Basin Plan. Consultation closed 1 May 2026. Throughout the consultation period, the MDBA received over 2,500 responses through formal and informal engagement channels and met with more than 500 First Nations peoples to gather input that will shape the recommendations of the Murray-Darling Basin Plan Review. 

Several prominent themes emerged from submissions. These include support for maximising the Basin's environmental outcomes and strengthening how water is used and coordinated for environmental purposes. Submissions raised concerns about native fish decline and the proliferation of carp and other introduced species. Other key themes related to the need for improved water quality and reliable water supplies to meet critical human needs. Submissions differed on whether to pursue increased water recovery, revised sustainable diversion limits, and stronger integration of climate change resilience in the Murray-Darling Basin Plan's framework.

Many submissions called for greater involvement of First Nations peoples in Basin decision-making and management, recognising the value of First Nations knowledge in restoring and caring for the Basin. First Nations submissions also highlighted the impacts of the Basin's declining condition on cultural practices, cultural heritage, and the intergenerational transfer of knowledge. 

The findings of this report will directly inform the 2026 Review Report, due in December 2026, and will also contribute to the review of the Water Act 2007 (Cth) in 2027. 
 
For more information on the Murray-Darling Basin Plan review, refer to our earlier article: Environment and Sustainable Development 5 Minute Fix 58: National Environmental Standards, net zero, Murray-Darling Basin Plan – Clayton Utz.

Queensland

Queensland's new waste and recycling strategy

The Queensland Government has released its new 10-year waste and recycling strategy titled Less Landfill, More Recycling 2035, backed by a Queensland Government investment of $975 million over five years. The strategy aims to reduce landfill reliance, build a circular economy that creates jobs, and make it easier for businesses to recycle.

The strategy sets a statewide recycling target of 65% by 2035 and a 65% reduction in waste to landfill against the 2019–20 baseline. Regional targets are reduced seeing a 70% reduction in South East Queensland, a 50% reduction for major regional centres, and maintenance of current levels in rural and remote areas. For businesses, the commercial and industrial recycling target rises to 60% (up from 56%), with moves toward improved waste collection, stream separation, and potential reporting on recycling and disposal rates. Construction and demolition waste has a target of 88%. 

Of the $975 million allocated over five years, $487 million is allocated to the Waste Reduction and Recycling Activation Fund for recycling programs and infrastructure, and $488 million is allocated to councils to offset household waste levy costs. Almost $60 million is already being rolled out through the Resource Recovery Boost Fund for material recovery facility upgrades and expanded processing capacity. 

In terms of regulatory impact, businesses can expect streamlined approvals for new recycling infrastructure, a review of which recycling activities qualify for levy discounts, and changes to the end-of-waste framework. The Queensland Government is pushing for national product stewardship schemes for batteries, solar panels, and packaging, and has flagged State-based schemes if national schemes are not implemented. Levy rate amendments are also proposed to reflect the new waste reduction targets. 

Western Australia

WA's first priority projects designated under the State Development Act 2025 (WA)

On 30 June 2026, the Minister for State Development designated eight projects in the WA Government Gazette as Western Australia's first priority projects under the State Development Act 2025 (WA) (SD Act). These projects are the first to be formally designated under the new SD Act and will provide the first practical examples of how the SD Act will be used to streamline projects of significance to Western Australia.

The eight designated projects are:  

• Project NeoSmelt, a lower-emissions iron pilot plant in Kwinana; 

• Narrogin Wind Farm, a 23 turbine windfarm producing an estimated 179 MW of wind energy; 

• Parron Maam Marang Wind Farm, a wind energy development in the Wheatbelt proposed to generate approximately 500 MW per year;  

• Kondinin Wind and Solar Project, an estimated 130 MW of energy production with wind, solar, and battery energy storage;  

• Marri Wind Farm, producing an estimated 550 MW of wind energy with provision for 6600 MWh battery storage; 

• Clean Energy Link (Kwinana), a transmission infrastructure site in the Rockingham-Kwinana Strategic Industrial Area; 

• Clean Energy Link (East Stage 1), with an estimated 330kV transmission lines connecting to the existing Muj and Shotts terminals; and 

• Clean Energy Link (North and Regans Reinforcement), upgrading grid infrastructure in south-west Western Australia.

The Priority Project designation establishes an escalation pathway under the SD Act for projects requiring elevated approval and licencing coordination. Designated projects benefit from fast-tracked approvals, reduced duplication of processes, strategic recognition, and coordinated engagement and support across government agencies. Once designated, the Office for the Coordinator General (OCG) oversees delivery by coordinating and facilitating government approvals and assessment processes, and may issue statutory notices under the Act to support decision-making.

Under standard environmental and planning frameworks, project proponents navigate approvals independently through multiple agencies, often encountering sequential and overlapping regulatory requirements. The Priority Project framework does not remove these regulatory standards, but introduces a coordination mechanism, where the OCG works across government to facilitate and streamline assessments, reducing delays and procedural duplication.

For more information on the SD Act, refer to our earlier article: The State Development Bill 2025 (WA) – What could it mean for your project? – Clayton Utz.

Australian Capital Territory

New Biodiversity and Urban Design Guidance 2026

The ACT Government's new Planning (Biodiversity Sensitive Urban) Design Guide 2026 commenced on 1 July 2026. The Guide represents a shift in how environmental requirements are embedded within the Australian Capital Territory's planning framework. Rather than treating biodiversity as a retrospective constraint on development, the Guide positions biodiversity as a prospective consideration that must be integrated from the outset of the planning and design process. 

The Guide applies to all sites in future urban areas, non-urban zones, and urban open space zones. It operates alongside the companion Planning (Urban) Design Guide 2026 which protects ecological networks, prevents infringement on environmentally sensitive areas, and ensures the creation of new green corridors connecting habitats.  

Critically, the Guide embeds environmental requirements through a three-step framework. First, proponents must identify site-specific biodiversity values. Second, they must establish biodiversity objectives aligned with the Territory Plan's assessment outcomes. Third, they must design developments to achieve those objectives across the following themes: 

• maintaining and enhancing nature; 

• connecting and extending nature; 

• minimising threats to protect nature; and 

• connecting people to nature (optional). 

Proponents must now demonstrate consistency with these assessment outcomes through their development applications. Clear plans and documentation are required. The Guide does not replace existing statutory obligations under the EPBC Act 1999 or the Nature Conservation Act 2014 (ACT) However, it introduces a dedicated planning layer that ensures biodiversity-focused outcomes are woven into every stage of the development approval process.

Tasmania

Sustainable Tasmanian Forestry – Bilateral Agreement

The Commonwealth and Tasmanian Governments have formally committed to working together on a new approval bilateral agreement to support sustainable forestry in Tasmania. This comes during significant reforms to national environmental law and represents a new chapter for the regulation of forestry operations in Tasmania. 

From 1 July 2027, forestry operations covered by Regional Forest Agreements (RFAs) will fall within the scope of federal environmental regulation for the first time, requiring operations to meet National Environmental Standards and obtain an EPBC Act approval if the operations are likely to have a significant impact on matters of national environmental significance. Tasmania's long-standing RFA, which has provided certainty for the industry for decades, will transition to the new bilateral agreement once finalised.    

Federal Environment Minister Murray Watt has issued a Notice of Intention to develop a draft bilateral agreement that would accredit Tasmania's forest management framework alongside the new National Environmental Standards. The Australian Government is working with all RFA states to develop landscape-scale approvals for forestry under the reforms.   

To support this transition, $28 million of Commonwealth funding over two years has been announced to help RFA states align their forest management systems with the new requirements, with up to $8.5 million available specifically for Tasmania. This builds on a broader $600 million federal investment in the forestry sector, including the recently announced $300 million Forestry Growth Fund aimed at growing the industry, supporting the Timber Fibre Strategy, and contributing to housing and net zero goals.   

Tasmania's existing forest management system is considered well-placed for the transition, with strong environmental safeguards and science-based decision-making already underpinning operations across Tasmania.  

Special thanks to Editor, Kian Rafie (Perth) and contributors Clare Gim (Sydney), Olivia Chudleigh (Brisbane), Kaylee Dawson (Perth), Grace McInerney (Sydney), Jada Hatch (Sydney), Claire Bernabe (Melbourne), and Chloe Northeast (Melbourne).