Budget delivers on landmark environmental law reforms

a cornerstone of the reforms and delivers on the Government’s commitment to the Australian people at the last election. “The funding we are announcing today will ensure the National EPA can be a strong, independent regulator with a clear focus on ensuring better compliance and enforcement of our strengthened environmental laws,” Minister Watt said. “It will also ensure the National EPA can support national productivity, through quicker, more streamlined approvals for projects important to our nation’s future prosperity, like affordable housing, renewables and critical minerals.

“We have moved quickly to establish and fund the National EPA and ensure its full benefits can be felt by business, the community and the environment, following the passage of our reforms in November.” The long-term sustainability of the National EPA will be supported with improved cost recovery arrangements, so the cost of regulatory activities undertaken by government is borne by those who benefit from regulation.

Cost recovery charges will be phased in to allow industry time to adjust. To further support the rollout of the Government’s national environmental reforms, the Budget also provides funding to streamline environmental approval processes with states and territories as well as modernise the information, data and digital services that underpin the decision making.

In addition to the funding for the National EPA, the Budget includes: $105.9 million over four years from 2026-27 to provide better access to information and improve the user experience for proponents, including through the use of AI, and better access to environmental data. More than $70 million over four years from 2026-27 to fast-track approvals with states and territories, including in priority areas like housing, energy and critical minerals.

This will include establishing bilateral agreements and delivering landscape scale approaches through strategic assessments and bioregional plans to balance development and environment protection. $36.9 million over two years from 2026-27 to bolster the Nature Repair Market and to facilitate delivery of environmental offsets. $28 million over two years from 2026-27 to further support forestry operations under Regional Forest Agreements to meet the new regulatory requirements.

$13.2 million over two years from 2026-27 to establish the Restoration Contributions Holder to deliver environmental offsets on behalf of proponents. This builds on the Prime Minister’s earlier announcement that the Government will also provide funding to states and territories to encourage them to adopt and implement streamlined environmental assessment pathways that take advantage of the recent reforms.

This will ensure project proponents can benefit sooner from quicker, more efficient environmental approvals. The Budget also supports the continuation of key environment policies and programs, including for native species and ocean protection, and Australia’s transition to a circular economy. $110.8 million over two years to extend the Saving Native Species program and H5 bird flu preparedness efforts to safeguard many of Australia’s most vulnerable animals and plants and protect and recover our most biodiverse natural landscapes.

$17 million in 2026-27 to continue efforts to boost Australia’s circular economy policy, program and legislative efforts. $16.7 million in 2026-27 to continue water reform activities in the Murray-Darling Basin. $11.5 million in 2026-27 to continue marine conservation and protection activities across our Australian Marine Parks and to progress national ocean actions.

This includes tackling illegal activity in marine protected areas, involving First Nations groups and marine users in managing Australian Marine Parks, strengthening national collaboration and speeding up restoration work in the ocean. We acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture.

We pay our respects to their Elders past, present and emerging.