Australia’s environmental laws regulate businesses to protect ecosystems and promote sustainability, encompassing federal legislation like the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and state-specific regulations.
This guide explores key compliance requirements, the general environmental duty, licenses, industry standards, benefits of adherence, and upcoming reforms, providing actionable insights for businesses to navigate this complex landscape effectively.
At the federal level, the cornerstone of environmental regulation is the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). This legislation applies to matters of national environmental significance, which include:
The EPBC Act mandates that any action likely to have a significant impact on these matters must be referred to the Department of Agriculture, Water and the Environment for assessment. If the action is deemed to have a significant impact, the proponent must obtain approval from the Minister for the Environment before proceeding. This process ensures that projects with potential environmental consequences are rigorously evaluated, typically within 20 business days. The EPBC Act covers over 30 environmental issues, including water management, soil management, invasive species, air quality, sustainable forest management, and endangered species protection.
Beyond the EPBC Act, other federal laws also impact businesses. These include regulations related to Indigenous heritage, nuclear safety, the import and export of waste, offshore petroleum activities, and the transportation of dangerous goods. For example, the National Greenhouse and Energy Reporting Act 2007 (NGER Act) requires certain businesses to report their greenhouse gas emissions and energy use.
The Australian government has introduced the One-Stop Shop initiative to streamline environmental approvals by allowing states and territories to assess and approve projects under national environmental standards. However, as of July 2025, the bilateral agreements between the federal government and states/territories are still being finalized, so businesses should verify the current status of these agreements to understand their obligations.
While federal laws provide a national framework, each state and territory in Australia has its own environmental legislation, which can vary significantly in scope, complexity, and focus. Businesses must comply with both federal and state/territory laws, depending on their location and operations.
Businesses operating across multiple jurisdictions must carefully assess the specific laws applicable in each location, as these can differ significantly. For example, environmental impact assessments may vary by state, and some jurisdictions allow third-party appeals, adding complexity to compliance.
The general environmental duty (GED) is a foundational concept in Australian environmental law, particularly emphasized in Victoria’s Environment Protection Act 2017. The GED requires all persons, including businesses, to take reasonable and feasible measures to prevent or minimize environmental harm from their activities. This duty applies universally, regardless of whether a business holds an environmental license or permit.
In practical terms, businesses must:
Failure to comply with the GED can result in severe penalties, including fines of up to $3.2 million for serious breaches and potential imprisonment for deliberate or repeat offenders. The GED encourages a proactive approach to environmental management, ensuring that businesses address potential harms before they occur. For businesses already managing their environmental risks, the GED typically requires minimal changes to operations.
Many business activities in Australia require environmental licenses or permits, particularly if they have the potential to significantly impact the environment. The need for such approvals depends on the nature of the activity and its location.
Licenses and permits often come with conditions, such as emission limits, monitoring requirements, or financial assurances, which businesses must adhere to. Non-compliance can result in penalties or the revocation of approvals.
In addition to general environmental laws, businesses must comply with industry-specific regulations and codes of practice. These are often developed collaboratively by government agencies and industry groups to provide tailored guidance for minimizing environmental impacts.
For example:
Businesses should identify and adhere to any codes of practice relevant to their operations, as these provide practical frameworks for compliance and can help demonstrate due diligence.
Compliance with environmental laws offers numerous advantages for businesses, including:
The Australian government is reforming its environmental laws to better protect the environment and support sustainable development, as outlined in the Nature Positive Plan following the Samuel Review of the EPBC Act. A key component of this reform is the establishment of Environment Protection Australia, a new agency tasked with administering the country’s environmental protection laws. This agency will have enhanced powers to ensure compliance and enforcement, including the ability to issue infringement notices, conduct investigations, and take legal action against non-compliant businesses.
The 2025-26 Budget includes $76 million over two years to establish Environment Protection Australia, indicating a significant commitment to strengthening environmental oversight. For businesses, these reforms signal a potential increase in regulatory scrutiny and stricter standards. Staying informed about these changes is essential to ensure ongoing compliance.
To navigate Australia’s environmental regulatory landscape effectively, businesses should:
By adopting these practices, businesses can not only meet their legal obligations but also contribute to a healthier environment and a more sustainable future.
You don’t have to navigate these requirements alone. You can access support through:
Look for solicitors experienced in:
A consultant can help you stay ahead of regulatory changes, particularly if you're expanding operations or planning a high-impact project.
Alt text 3: Legal Help with Environmental Laws for Businesses
Environmental laws in Australia are designed to protect the natural environment while ensuring businesses operate sustainably. The regulatory framework, encompassing both federal and state/territory laws, can be complex, but compliance is essential for avoiding penalties, enhancing reputation, and seizing market opportunities. Key legislation, such as the EPBC Act and state-specific laws like the POEO Act in NSW and the Environment Protection Act 2017 in Victoria, provides the foundation for environmental management. Additionally, the general environmental duty (GED) and the need for licenses and permits underscore the importance of proactive environmental stewardship.
With upcoming reforms, including the establishment of Environment Protection Australia, businesses must prioritize environmental responsibility more than ever. By implementing robust environmental management practices and staying informed about regulatory changes, businesses can navigate this landscape successfully and contribute to a sustainable future. For further information and support, businesses can consult legal experts or contact the relevant environmental authorities in their jurisdiction, such as the Department of Agriculture, Water and the Environment or state-specific agencies.