Queensland LNP Launches Inquiry Into Economic Impact of Labor’s Federal Environmental Laws

The Queensland Productivity Commission has been tasked with examining the impact of Labor’s environmental amendments passed last year.

Queensland Treasurer David Janetzki (centre) delivering the 2025-26 Queensland state budget at Queensland Parliament in Brisbane, Australia on June 24, 2025. AAP Image/Darren England

The Queensland LNP government has launched an inquiry into the impact of federal Labor’s contentious environmental protection amendments and its impact on economic productivity.

Passed in November last year, the amendments changed the Environment Protection and Biodiversity Conservation Act to give the federal government power to “protect nationally important matters,” including new environmental standards.

It establishes a new federal environmental agency—on top of existing state ones—and includes new standards for environmental protection.

The federal government said it will also aim to expedite assessments for new projects—except for fossil fuel projects—if they meet the standards, a condition of gaining Greens support for passage through the Senate.

But the Queensland Liberal National Party (LNP) government has now charged the Queensland Productivity Commission with investigating the economic impact of the new laws, Treasurer David Janetzki announced.

“Many of these [federal] elements are yet to be fully implemented and will rely on subordinate legislation, standards, guidance and administrative practice. Of concern is that the legally binding National Environmental Standards remain under development, with little transparency about their potential impact on Queensland,” according to his direction to the QPC.

“It is critical 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.”

Queensland Premier David Crisafulli has previously urged the federal government to grant a “national interest” exemption for its slated Taroom Trough project, west of Brisbane.

Crisafulli visited the “Singapore-sized“ region last week claiming he was standing over a ”sea of oil,“ which represented a ”generational opportunity.”

The pitch comes as Australia grapples with sky-high fuel and diesel prices due to the conflict in Iran that has seen 20 percent of global oil traffic through the Strait of Hormuz shut down. Australia imports about 90 percent of its petrol, diesel, and jet fuel from overseas refiners in Asia.

If approved, Taroom Trough could become Australia’s first new oil field in 50 years.

However, if not granted the exemption, it could face up to 4 years of delays, as previous projects have: the Westside Corporation coal seam gas project took 3.8 years to secure approval, while Senex Energy’s Western Surat gas project was delayed for 3.2 years.

Federal Minister Pushes Back

In response, federal Environment Minister Murray Watt claimed the government had yet to receive detailed information on the Taroom proposal and accused the Crisafulli government of chasing headlines.

“One of the key ways we can speed up approvals is for state governments to sign bilateral agreements with us to let approvals happen simultaneously,” Watt told AAP.

“So far, David Crisafulli has yet to even come to the table on a bilateral agreement with us.”

He described the federal environmental changes as overdue.

“This was the first time national environmental laws had been updated in more than 25 years,” he said.

The inquiry is set to run for 12 months. Queensland recently reviewed its own environmental targets and announced a slower transition to net zero.

The Epoch Times has contacted Treasurer Janetzki for a response to Senator Watts’ comments.