A coalition of Australia’s peak industry groups has warned that Labor’s proposed overhaul of federal environment laws risks creating an even slower and more confusing approvals regime, unless significant amendments are made.
In a joint letter sent to Environment Minister Murray Watt and Shadow Environment Minister Angie Bell, 26 industry organisations representing miners, farmers, transport operators, major investors, and small businesses said they support the Environment Protection Reform Bill 2025—but only if the government and opposition work together to fix key parts of the draft.
They include the Australian Banking Association, Business Council of Australia, Australian Energy Council, Australian Mineral Council, and National Farmers’ Federation.
The groups argue that without changes, the package could “establish a system that’s even slower and more complex than the present system” and fail to provide the legal certainty required for long-term capital investment.
Call for Clarity and Predictability
The Albanese government’s Environment Protection Bill, which passed the House of Representatives on Nov. 6, is headed for a Senate fight.The bill establishes a new Environmental Protection Agency (EPA), introduces a “net environmental gain” requirement for many developments, and forces major projects to disclose their projected carbon emissions.
It also includes an “unacceptable impacts” test allowing early rejection of proposals that pose serious environmental harm, and a “national interest override” enabling ministers to fast-track projects for defence or emergency reasons.
Businesses say they agree on the need to replace the existing 25-year-old approvals regime, which has become notorious for long delays.
Current environmental assessments routinely stretch beyond 100 weeks, holding back major renewable projects, transmission lines, mining operations and large-scale housing developments.
But industry groups warn that several sections of the draft law are too vague or too sweeping.
Among their concerns are that terms such as “irreplaceable” and “seriously impair” are too broad and could enable regulators to refuse projects on unclear grounds.
The alliance wants the government to ensure at least one state is accredited to conduct assessments under federal standards as soon as the reform begins.
For extra flexibility, where projects can last up to 10 years, they proposed that the five-year “sunset clause” for non-controlled actions should be extendable without forcing new referrals.
Industry groups want the power to approve projects to remain with the minister, so social and environmental impacts are also weighed.
Reforms Face Senate Fire
Critics from both sides say the government has miscalculated—for entirely different reasons.Shadow Environment Minister Bell argues the reforms centralise power in Canberra and could chill investment.
She says the new EPA has “broad, sweeping powers,” noting that its chief executive could only be removed by the governor-general, limiting accountability.
Bell also opposes hardwiring emissions reporting into environmental approvals, warning it could invite legal challenges.
On the other flank, the Greens say Labor has failed to deliver genuine reform.
Senator Sarah Hanson-Young accused the government of caving to industry pressure.
Industry Wants Certainty, Not Chaos
For industry groups, the political deadlock poses its own risks.They warn that without bipartisan cooperation, businesses face years of uncertainty—and Australia risks losing investments needed for the energy transition, housing projects, and critical minerals development.
Australia “needs a reformed environmental approvals framework that delivers clarity, confidence, and faster decision-making,” the Alliance said.
The reformed system must deliver benefits “for business and the economy and a net benefit for the environment, not simply a new layer of complexity.”
The 26 groups say they are ready to continue working with all parties to secure amendments.
