ALRC recommends sweeping Native Title Act changes
The Australian Law Reform Commission's March 2026 report (Fulfilling the Promise of Mabo: Reforming the Future Acts Regime in the Native Title Act 1993 (Cth) (ALRC Report 144)) (Report) represents the first comprehensive review of the future acts regime in the Native Title Act 1993 (Cth) since the current regime was introduced by the post-Wik amendments to the Native Title Act in 1998.
Across more than 600 pages, the Report makes 86 recommendations that would radically transform the future acts regime nationwide if legislated by the Commonwealth.
The Report follows the May 2025 Discussion Paper and November 2024 Issues Paper, which we wrote about in our Native Title Year in Review 2024-2025 article, "Australian Law Reform Commission releases Discussion Paper in future acts regime inquiry". The Report responds to widespread calls for reform, including recommendations from the Joint Standing Committee on Northern Australia's A Way Forward: Final report into the destruction of Indigenous heritage sites at Juukan Gorge released in October 2021.
The recommendations respond to the Commission's overarching view that:
The future acts regime is not only unfair and inequitable but key aspects of it are also discriminatory because they deny to native title holders' equality before the law. That denial is in breach of Australia's international obligations; is out of alignment with s 10(1) of the Racial Discrimination Act 1975 (Cth); is contrary to the motivating rationale of the High Court's decisions in Mabo v Queensland (No 1) and Mabo v Queensland (No 2); and is out of accord with the intention of the NTA, as stated in the preamble (page 13 Summary Report).
Two key themes are reflected in the Report:
The Report's most far-reaching recommendation replaces the current future acts "batting order" with a new impact-based model. Under this approach, the process for validating future acts depends on their impact on native title rights and interests, not the type of act or underlying land tenure.
Five main categories are proposed, as set out below.
| Group | Name | Procedural rights |
|---|---|---|
| A | Assessed limited impact acts | Notification and opportunity to comment. |
| B | Assessed lower impact acts | Opportunity to engage in consultation with relevant government party and/or future act proponent. |
| C | Negotiated lower impact acts | For determined land: procedural rights and other conditions as agreed by the relevant prescribed body corporate (PBC), government party and/or future act proponent. |
| D | Higher impact acts | Right to negotiate. |
| E | Equivalency future acts | Same procedural rights as would be afforded to a holder of freehold title in the same circumstances. |
It is proposed that the Commonwealth Government would then make regulations to help determine a future act's category, following consultation and recommendations from the National Native Title Tribunal (NNTT). Relevant factors include major land disturbance or material impact on cultural rights.
The regulations could set conditions that the relevant State or Territory must impose on the grant of a future act to qualify as "assessed lower impact". Some conditions can be "validating", meaning that non-compliance leads to invalidity. Regulations can also require fair and just "redress" payments within a reasonable time.
The Report acknowledges that the Government may not wish to implement a full-scale replacement of the future acts regime, and therefore includes recommendations for less drastic changes to several future act pathways in the Native Title Act.
These changes would either repeal or limit existing future act pathways or enhance the procedural rights available to native title parties. Of particular note are the recommendations that: (1) the taking of large amounts of water should trigger the right to negotiate (RTN) process; and (2) Subdivision K (Facilities for services to the public) should be limited to facilities that are "an essential service, or to facilitate the delivery of an essential service, to the general public".
The Commission originally proposed Native Title Management Plans as a new pathway to enable future acts. Under this model, a PBC could develop a plan for its determination areas, setting out alternative procedures for validating future acts tailored to local circumstances.
The Commission has scaled back this proposal after submissions questioned its workability. Now called "Native Title Plans", they must go through NNTT registration and remain voluntary unless the relevant State or Territory agrees.
The Report recommends significantly overhauling the RTN process by expanding the types of future acts that trigger it and changing how it works. The table below summarises the major recommendations.
| ALRC's recommendations about the right to negotiate process | |
|---|---|
Time | Minimum good faith negotiation period increases from six to 12 months. |
Early determination procedure | Native title party can apply to the NNTT after three months seeking a determination that the future act cannot be done. |
Good faith |
|
Separate issues referral | Introduces an option for parties to refer separate issues for resolution by the NNTT or independent third party. |
Section 39 criteria | More robust criteria focussed on payment of "redress". |
Benefit-sharing conditions | NNTT can determine financial conditions, including benefit-sharing conditions (this is currently precluded by section 38(2) of the Native Title Act). |
Agreed arbitrator | Introduces an option for parties to agree consent arbitration conducted by an agreed arbitrator. |
Reduced Ministerial oversight | All mandatory reporting to the Minister, and the Ministerial "step-in" powers, removed. |
Increased case management assistance | Increased role for NNTT in more proactive case management. |
New RTN triggers |
|
Costs | Ability for native title parties to recover reasonably incurred costs participating in mediation and NNTT processes. |
Where parties cannot reach agreement and the matter goes to arbitration, the Report recommends significant changes:
The Report recommends the following for all future act agreements:
| Recommendations for all agreements | |
|---|---|
Prohibited terms in agreements | Certain clauses in agreements are void and unenforceable (including so-called "gag clauses" and clauses restricting access to remedies under cultural heritage legislation). |
Management of funds | Any clauses which limit or restrict how native title parties administer or manage payments are prohibited, void and unenforceable. |
Review | A model periodic review clause deemed to apply in future act agreements with a term of more than five years. |
Dispute resolution |
|
Federal Court jurisdiction | Federal Court empowered to construe and make a binding declaration as to the meaning of a future act agreement. |
The Report recommends repealing the expedited procedure because it concluded that the procedure does not operate effectively, efficiently, or fairly. Instead, exploration would fall under the recommended impact-based scheme.
The Report rejects the assumption that exploration has low impact. Exploration activities vary materially depending on disturbance, location, vegetation clearing, and proximity to cultural sites, watercourses, and communities. If the regulations categorise exploration as "higher impact", the RTN would apply.
If the expedited procedure remains, the Report recommends amendments including requiring consultation with native title parties and changes to the section 237 criteria.
The Report recommends repealing section 26(1) of the Native Title Act so that mining tenure renewals are no longer excluded from the RTN. The Report says that the current system enables serious and ongoing infringements of native title rights and interests and is discriminatory because ordinary title holders would have consent rights or other procedural protections for renewals.
The Report recommends that the "equivalency principle" apply to renewals. Native title parties' procedural rights would be no less favourable than those afforded to ordinary title holders. Where an agreement validating the original grant (such as an Indigenous Land Use Agreement (ILUA) or section 31 agreement) provides for renewal, no procedural rights would apply. Without such an agreement, the renewal would be subject to the Native Title Act like a new grant. For mining, this means the RTN or an ILUA, with no guarantee of renewal.
The Native Title Act currently provides for compensation for any loss, diminution, impairment, or other effect on native title rights and interests. The Report notes that compensation is retrospective, assessed by reference to effects on those rights. It says that for the vast majority of future acts validated over the last 32 years, native title holders have not received a single dollar in compensation (note: the Report was finalised before the Yindjibarndi decision).
"Redress" is not currently used in the Native Title Act but features prominently in the Report. The Commission defines "redress" as remediation for adverse impacts on Indigenous Peoples' lands, territories, or resources. It includes benefit-sharing. The Commission says benefit-sharing and remedies are distinct: Indigenous Peoples have an entitlement to share in benefits from activities on their traditional territories, separate from any compensation entitlement for damages. For "redress" to be effective, it must be timely – provided within a reasonable time of the adverse effects being experienced.
This is reflected in the Report's recommendations in the following ways:
The Report recommends measures to address gaps in compliance and enforcement, as follows:
These recommendations, if implemented, would affect all parties – Government, mining, petroleum and gas sectors, infrastructure providers, utility companies, and renewable project proponents – who require access to land where native title exists.
The recommended replacement of the existing "batting order" with an impact-based regime could create unworkable complexity and uncertainty about the categorisation of future acts, leading to delays, legal challenges, and increased costs.
Several recommendations that will particularly affect the energy and resources industry, including the repeal of the expedited procedure, the removal of the existing protection for renewals and the additional requirements for the RTN process. These changes would substantially increase native title parties' bargaining power and heavily promote agreement-making.
Even on the alternative model, the additional consultation requirements and expanded application of the right to negotiate process would have a major impact on state and local government development, public infrastructure, and primary production future acts. By contrast, the impact on major energy and resources projects (which already commonly reach agreements with native title holders) is likely to be less significant.
The Commonwealth has committed to "consider the report's 86 recommendations and … to working with First Nations communities and key sectors". To date, the Commonwealth has not responded to the recommendations in the Report; this will be an area to monitor. Native Title Act reform presents significant complexity given the range of stakeholders and the need to balance diverse interests. The Government must consider the Commission's recommendations alongside other concurrent reforms, including the proposed National Environment Standard for First Nations Engagement under the reformed Environment Protection and Biodiversity Conservation Act 1999 (Cth) and possible amendments to the Aboriginal and Torres Strait Islander Heritage Protection Act 1984 (Cth). The timing and scope of any Native Title Act reform will depend on the Government's broader legislative priorities.
Stakeholders should remain engaged (including with their industry body) and monitor the Federal Government's response to the Report.
Authors: Tony Denholder, Partner and Leonie Flynn, Expertise Counsel.
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
Readers should take legal advice before applying it to specific issues or transactions.