After inquiring into the declining productivity in the construction industry and making a number of recommendations aimed at land use regulation and planning reforms, building regulations and workplace health and safety regulations, the Queensland Productivity Commission (QPC) will now turn its focus to the suite of federal environmental protection reforms passed in 2025.
The Queensland Government has directed the QPC to undertake a public inquiry into the recent reforms to the Environmental Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act) and the resulting impact on Queensland industries and businesses. An interim report will be released for public consultation later this year, with the final report to the Government to be delivered by 13 April 2027 (12 months from the date of the direction).
Summary of EPBC Act reforms
The key elements of the 2025 EPBC Act reforms include:
environmental offsets – offsets are intended to be used only after all reasonable measures to avoid, mitigate and repair environmental impacts have been exhausted (where possible and feasible). In some circumstances, proponents may be required to make restoration contributions to support environmental outcomes
national environmental standards – the introduction of legally enforceable standards to guide environmental decision-making and provide a consistent framework for assessing projects under the EPBC Act
National Environmental Protection Agency (NEPA) – the establishment of an independent regulator responsible for compliance, enforcement and oversight functions on 1 July 2026
bilateral agreements – reforms to Commonwealth-State approval arrangements to ensure that accredited assessment and approval processes operate consistently with the National Environmental Standards
enhanced compliance and enforcement powers – increased penalties for serious breaches, expanded investigative and audit powers, and the introduction of new environment protection orders
changes to assessment and approval pathways – consolidation of three existing assessment pathways into a single streamlined assessment framework, together with the introduction of expedited pathways for eligible projects and other measures designed to improve the efficiency and certainty of environmental decision-making
regional (bioregional) planning – the introduction of bioregional plans to identify areas suitable for development and conservation, with the aim of improving strategic environmental decision-making and streamlining approvals for compliant projects
Environment Information Australia(EIA) – the establishment of an independent body responsible for collecting, managing and reporting environmental data, including the publication of State of Environment reports on a two-year basis.National Environmental Protection Agency (NEPA) – the establishment of an independent regulator responsible for compliance, enforcement and oversight functions on 1 July 2026
bilateral agreements – reforms to Commonwealth-State approval arrangements to ensure that accredited assessment and approval processes operate consistently with the National Environmental Standards
enhanced compliance and enforcement powers – increased penalties for serious breaches, expanded investigative and audit powers, and the introduction of new environment protection orders
changes to assessment and approval pathways – consolidation of three existing assessment pathways into a single streamlined assessment framework, together with the introduction of expedited pathways for eligible projects and other measures designed to improve the efficiency and certainty of environmental decision-making
regional (bioregional) planning – the introduction of bioregional plans to identify areas suitable for development and conservation, with the aim of improving strategic environmental decision-making and streamlining approvals for compliant projects
Environment Information Australia(EIA) – the establishment of an independent body responsible for collecting, managing and reporting environmental data, including the publication of State of Environment reports on a two-year basis.
The focus of the QPC Inquiry
As set out in the Terms of Reference, the Government has noted that “regulation across all levels of government serves its intended purpose and not act as a handbrake on vital projects that support growth and economic security.”
For this reason, the Government has asked the QPC to focus on any changes to regulatory burdens, economic impacts, implementation risks and operational arrangements resulting from the EPBC Act reforms, including consideration of the following as extracted from the Terms of Reference:
Regulatory burden and compliance impacts
How the EPBC Act reforms affect regulatory obligations and pre‑approval compliance requirements for landholders, project proponents and governments in Queensland.
The implications for regulatory burden, including impacts on costs, timeframes, uncertainty and duplication, particularly where they interact with Queensland regulatory and planning frameworks.
The capacity of different landholder groups to comply with the requirements (noting that the requirements apply to individuals and small businesses, through to corporate and government landholders).
The key risks from potential changes to the National Environmental Standards.
Economic and productivity impacts
The implications of the reforms for investment, business viability, productivity and economic activity in Queensland.
The distribution of impacts across different industries, regions and types of proponents, including small and family businesses.
The implications for major infrastructure and housing delivery and government‑led projects.
Land and risk management implications
The extent to which the reforms affect the ability of landholders and governments to manage land for practical purposes, including fire mitigation, stewardship and biodiversity, flood management, weed and pest control and biosecurity.
Any unintended consequences for community safety, infrastructure resilience or operational risk arising from regulatory design or implementation.
Intergovernmental and administrative arrangements
The extent to which Commonwealth-State bilateral agreements, accreditation frameworks and related arrangements provide opportunities to reduce duplication and improve certainty for Queensland in the implementation of the reforms.
The extent to which the reforms shift regulatory, administrative or financial responsibilities to Queensland, including implications for resourcing and fiscal risk.
Options and recommendations
Practical options to reduce unnecessary regulatory burden and improve efficiency, certainty and proportionality in the application of the reforms in Queensland.
Opportunities to improve alignment between Commonwealth and Queensland frameworks without undermining Queensland’s regulatory autonomy.
Recommendations to inform Queensland Government policy priorities and ongoing engagement with the Australian Government.
Key inquiry and reporting dates
How the industry can make a submission
The QPC is now inviting stakeholders to make a submission to the inquiry and assist the Commission in developing the findings and recommendations. Submissions are expected to help the QPC outline the scope of the inquiry and identify any matters for which QPC should seek information and feedback.
The inquiry presents an important opportunity for businesses, landholders, industry groups, local governments and stakeholders to identify potential impacts on operations, projects or landholdings, including increased regulatory requirements, approval timeframes, compliance costs and investment decisions. Those considering making a submission should provide practical examples and evidence to help inform the QPC’s recommendations.
Stakeholders can make an initial submission via the online portal until 13 July 2026, or via email or post. A further opportunity for submissions will be available once the interim report is released later this year.
If you have any questions about the inquiry or need assistance with making a submission, please contact us here.
Disclaimer The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.
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