The Business Council says the Government's proposed reforms to the Environment Protection and Biodiversity Conservation (EPBC) Act present an opportunity to fix a broken system, but further changes are needed to make sure it works for the economy and the environment.
Business Council Chief Executive Bran Black said the business sector needs reforms that accelerate the delivery of housing, energy and critical minerals projects, which are needed to make sure Australia remains a leading economy.
"This is a long-overdue step toward modernising a system that everyone agrees is broken, however, business still has many concerns that need addressing if we want the EPBC system to support growing the economy," Mr Black said.
"We urgently need an approvals system that works, but without significant changes to this Bill - with bipartisan support from the parties of government - we risk embedding a system that's even slower, more complex and lacking the clarity and certainty needed for investment."
"Without reforms that strike the right balance, we won't get the homes, the renewable energy or the critical minerals projects that are vital to Australia's future prosperity."
A balanced and workable system
Mr Black said the test for success is whether the final package delivers a net benefit for both the environment and business.
"We have to get these reforms right. That means reducing duplication, improving certainty, and making sure the new system is genuinely faster and more efficient," he said.
"If we don't make these changes, we won't get the streamlined approvals that other countries - like Canada - already enjoy, and Australia's competitiveness will suffer as a consequence."
Key improvements needed
The BCA has identified several critical areas for change to ensure the new laws are practical and proportionate, and can be supported by business:
- Clarify 'unacceptable impacts' - move this test into the Standard or rewrite this test to avoid broad interpretations that could unnecessarily rule out projects.
- Strengthen guardrails on Environment Protection Orders - require clear grounds, and merit-based appeal rights of the CEO's powers.
- Guarantee timely accreditation of states and territories - so that new environmental tests and standards only take effect once at least one major state is accredited to deliver assessments and approvals.
- Retain existing assessment pathways - so that less complex projects are not unintentionally pushed into slower, more cumbersome processes.
- Ensure an appropriately focused EPA - undertaking only compliance, assurance and enforcement actions, with the CEO also subject to a binding Ministerial Statement of Expectations to increase accountability.
- 'Net gain' test - ensure that the Standards provide the detail needed to give business certainty.
- Ensure new tests apply prospectively only - with appropriate grandfathering for existing projects and approvals.
- Extend the 'non-controlled action' sunset period -with ministerial discretion for extension, and existing decisions grandfathered.
- Clarify greenhouse gas disclosure requirements - be clear that these are for transparency, and do not create a new system of conditions that duplicate current processes.
Mr Black said the BCA and our members will now review the around 1500 pages of the materials that have been tabled in the Parliament today, and it will be important the Parliament has adequate time to work through the extensive changes.
"If we don't move on accreditation at the same time as these new standards are introduced, we'll simply be entrenching more delays rather than genuinely addressing the challenges businesses presently face."
Mr Black said the BCA remains committed to working constructively with the Government, Opposition, and environmental groups to deliver a durable, balanced, and nationally consistent outcome.
"We want to see a system that protects the environment and drives investment. That's the balance Australians expect - and it's achievable if we get these reforms right," he said.
