The Federal Government has committed significant funding in the 2026-27 Budget to implement its national environmental law reforms, including the establishment of Australia’s first independent National Environmental Protection Agency (National EPA).
Backed by $250 million over two years from 2026-27, the National EPA is scheduled to commence operations from 1 July 2026, with ongoing funding to follow from 2028-29 once bilateral approval agreements are finalised with states and territories.
According to the Minister for the Environment and Water, Senator the Hon Murray Watt, the new regulator will play a central role in strengthening environmental compliance while supporting more efficient approvals for nationally significant projects.
“The funding 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,” Watt says.
He adds that the reforms are also intended to improve national productivity through faster and more streamlined approvals for sectors including renewable energy, housing and critical minerals.
The Budget allocates more than $70 million over four years from 2026-27 to accelerate environmental approval processes with states and territories, particularly for projects tied to energy infrastructure, housing and resource development. This includes the development of bilateral agreements, strategic assessments and bioregional planning frameworks aimed at balancing development outcomes with environmental protection.
Further investment has also been directed toward improving the digital systems underpinning environmental decision-making. The Government will provide $105.9 million over four years to modernise information and data services, including the use of artificial intelligence to improve user experience and access to environmental information for project proponents.
The reforms are expected to have implications across Australia’s renewable energy sector, where developers continue to navigate increasingly complex planning and assessment requirements as large-scale generation, transmission and storage projects expand across the National Electricity Market.
Additional funding measures in the Budget include $36.9 million over two years to strengthen the Nature Repair Market and support the delivery of environmental offsets, alongside $13.2 million to establish a Restoration Contributions Holder responsible for delivering offsets on behalf of proponents.
The forestry sector will also receive $28 million over two years to support operations under Regional Forest Agreements as new regulatory requirements are introduced.
Beyond regulatory reform, the Budget includes continued support for broader environmental and sustainability initiatives, including $17 million in 2026–27 to advance Australia’s circular economy agenda and $110.8 million over two years to extend the Saving Native Species program and strengthen H5 bird flu preparedness efforts.
Additional allocations include $16.7 million for Murray–Darling Basin water reform activities and $11.5 million to continue marine conservation and Australian Marine Parks protection initiatives.
To read the full Federal Government media release, click here.
