Environmental Laws for Businesses in Australia: 5+ Insights

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.

Federal Environmental Laws for Businesses in Australia

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:

• World heritage properties
• National heritage places
• Wetlands of international importance
• Listed threatened species and ecological communities
• Migratory species
• Commonwealth marine areas
• Nuclear actions (including uranium mining)
• Water resources in coal seam gas and large coal mining developments

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.

State and Territory Environmental Laws for Businesses in Australia

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.

• New South Wales: The Protection of the Environment Operations Act 1997 (POEO Act) is the principal legislation governing environmental protection. It addresses issues such as water, land, air, noise pollution, and waste management. Businesses in NSW must ensure compliance with this act, as well as any relevant regulations and policies. Non-compliance can lead to serious penalties, and ignorance of the law is not a valid defense.
• Victoria: The Environment Protection Act 2017 introduces a general environmental duty (GED), requiring all businesses to take reasonable steps to prevent or minimize harm to human health and the environment. This duty applies to everyone involved in the business, from owners to subcontractors, and carries significant penalties for breaches, including fines up to $3.2 million.
• Queensland: The Environmental Protection Act 1994 governs environmental management, with additional industry-specific codes of practice, such as those for concrete batching or mosquito management.
• Other Jurisdictions: States like South Australia (Waste Avoidance and Resource Recovery Act 2001) and Western Australia (Environmental Protection Act 1986) have their own legislative frameworks tailored to local environmental priorities.

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.

General Environmental Duty (GED) for Businesses in Australia

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:

• Identify potential sources of environmental harm, such as emissions or waste.
• Assess the risks associated with these sources, considering the sensitivity of the environment and the likelihood of harm.
• Implement measures to prevent or minimize these risks, such as adopting cleaner production methods or efficient waste management.
• Monitor and review their environmental performance regularly to ensure ongoing compliance.

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.

Environmental Licenses and Permits for Businesses in Australia

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.

• Federal Level: If a project is likely to affect matters of national environmental significance, it must be referred under the EPBC Act. The Department of Agriculture, Water and the Environment assesses the proposal and determines whether approval is required. Businesses can use the Protected Matters Search Tool (https://www.dcceew.gov.au/environment/epbc/protected-matters-search-tool ) to identify potential impacts early in the planning process.
• State/Territory Level: Businesses may need licenses or permits for activities such as discharging waste into water bodies, emitting air pollutants, managing hazardous materials, or operating in environmentally sensitive areas. Requirements vary by jurisdiction, so businesses should consult the relevant environmental authority, such as the NSW Environment Protection Authority or the Queensland Department of Environment and Science.

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.

Industry-Specific Regulations and Codes of Practice

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:

• The concrete batching industry in Queensland follows a specific code of practice addressing dust, noise, and other environmental concerns.
• Industries such as mining, agriculture, and manufacturing may have their own sector-specific guidelines, such as the mosquito management code of practice in Queensland.

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.

Benefits of Compliance for Businesses in Australia

Compliance with environmental laws offers numerous advantages for businesses, including:

• Avoiding Penalties: Non-compliance can lead to significant fines, legal action, and reputational damage. For example, breaches of Victoria’s Environment Protection Act 2017 can result in fines up to $3.2 million.
• Enhancing Reputation: Demonstrating environmental responsibility builds trust with customers, investors, and the community, fostering brand loyalty in eco-conscious markets.
• Cost Savings: Environmentally friendly practices, such as reducing paper use or optimizing energy consumption, can lower operational costs. For instance, switching to digital systems can reduce the environmental impact of paper, which accounts for 26% of landfill trash.
• Market Access: Many markets and supply chains prioritize businesses that meet environmental standards, providing a competitive advantage.
• Innovation: Environmental regulations often drive the adoption of green technologies, circular economy models, and sustainable supply chains, fostering innovation and efficiency.

Upcoming Reforms and Environment Protection Australia

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.

Tips for Compliance for Businesses in Australia

To navigate Australia’s environmental regulatory landscape effectively, businesses should:

• Develop an Environmental Management System (EMS): An EMS, such as one certified to ISO 14001, helps systematically manage environmental impacts and ensures compliance.
• Train Staff: Ensure all employees, from managers to subcontractors, understand their environmental responsibilities and are trained on relevant procedures.
• Conduct Regular Audits: Internal and external audits help identify areas for improvement and confirm compliance with environmental obligations.
• Stay Informed: Monitor changes in environmental laws and regulations, particularly those affecting your industry or location, through resources like business.gov.au.
• Engage with Regulators: Build relationships with environmental authorities, such as the NSW Environment Protection Authority or the Department of Agriculture, Water and the Environment, for guidance and support.
• Monitor and Report: Maintain accurate records of environmental performance and fulfill reporting requirements, such as those under the NGER Act.

By adopting these practices, businesses can not only meet their legal obligations but also contribute to a healthier environment and a more sustainable future.

Legal Help with Environmental Laws for Businesses Australia

Regulatory Support

You don’t have to navigate these requirements alone. You can access support through:

• State Environmental Protection Authorities
• Industry associations
• Local councils

Finding Environmental Legal Advice

Look for solicitors experienced in:

• EPBC approvals
• Contamination issues
• Defence against EPA notices

When to Work with Environmental Consultants

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

Conclusion

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.