EPBC update: National Environmental Standards and next steps

What you need to know

• New National Environmental Standards (NES) are a key part of the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act) reforms.
• The first four have been made for Matters of National Environmental Significance, Environmental Offsets, Community Engagement and Data and Information.
• These NES now apply for new or varied assessment bilateral agreements and for accrediting Commonwealth, State and Territory approval frameworks for the purposes of the EPBC Act.
• The NES will apply for EPBC Act controlled action approvals once the new approval tests commence (by 1 December 2026).
• The fifth First Nations Engagement NES is still being developed.
• The remaining legislative amendments are due to commence by 1 December 2026.

What you need to do

• Factor the NES into project planning and EPBC referral approaches now.
• Consider whether to refer actions before the new approval tests take effect (by 1 December 2026).
• Start offsets and community engagement work early.
• Monitor the final regulations and the start of the remaining reforms.

Timing of the reforms

The Federal Government is implementing its EPBC Act reforms in stages.

The NES are a key part of the reforms. The first four NES were made on 19 August 2026.

In this article, we summarise the four NES, explain how they apply and outline the next steps.

How the NES work

The NES are legislative instruments made by the Minister. Each NES sets objectives and outcomes, and the principles for achieving them. A NES binds a decision-maker only where the EPBC Act or Regulations require it.

Each NES explains how a decision-maker may be satisfied that a decision is consistent with it. In short, a decision-maker may be satisfied if the action, or the framework being accredited, meets the NES principles, having regard to the NES objectives and outcomes. For accredited frameworks, requirements that are in effect equivalent to, or higher than, the principles are also enough. The principles are a floor, not a ceiling.

When the NES apply

Now: assessment bilateral agreements and accreditation

Since 24 August 2026, the EPBC Regulations have applied all four NES to decisions to:

• enter into or vary assessment bilateral agreements. Under an assessment bilateral agreement, a State or Territory assessment is relied on for the EPBC Act, but the Commonwealth still decides whether to approve; and
• accredit Commonwealth, State or Territory management or authorisation frameworks. Accreditation means approvals under those frameworks are recognised for the EPBC Act.

Three of the NES (all except Offsets) apply to declarations for National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) frameworks for offshore petroleum and greenhouse gas activities. These requirements apply only to agreements, accreditations and declarations made or varied on or after 24 August 2026.

From commencement: action approvals

The NES do not yet apply to EPBC Act action approvals. That will change when the new approval tests commence (by 1 December 2026). From then, an action must not be approved unless the Minister or their delegate is satisfied the approval is consistent with any prescribed NES. The proposed regulations would prescribe all four NES for approval decisions.

A national interest proposal may be approved despite an inconsistency with a NES, if the inconsistency is reasonably necessary for the intended national interest outcome. Fossil fuel actions cannot be national interest proposals.

In the meantime

A decision-maker may have regard to any NES they consider relevant to a decision. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) and NEPA have both said the NES will not apply to assessment and approval decisions until the new tests start. Even so, proponents should expect the NES to inform what decision-makers regard as good practice.

The four NES at a glance

MNES (National Environmental Standard (Matters of National Environmental Significance) 2026)

Sets objectives for each type of protected matter, such as threatened species, Ramsar wetlands and World Heritage properties. Actions must apply the mitigation hierarchy (avoid, mitigate, repair, then compensate) and consider impacts in context. Residual significant impacts must be compensated, but only after avoidance, mitigation and repair have been reasonably exhausted. Some impacts cannot be offset at all and must be designed out. Proposals must be supported by appropriate evidence on impacts.

Environmental Offsets NES (National Environmental Standard (Environmental Offsets) 2026)

Applies where offsets compensate for residual significant impacts and deliver the required net gain. Offsets must be feasible, secure, tangible, measurable, additional, like-for-like and in a relevant area. Offsets must generally be secured, registered and under management before the impact occurs. For approval decisions, paying a restoration contribution charge can also satisfy this NES. The Offsets NES is not prescribed for NOPSEMA framework declarations.

Community Engagement NES (National Environmental Standard (Community Engagement) 2026)

Requires engagement to be planned, transparent and responsive, ethical and protective of privacy, and accessible and inclusive. One way to meet the planning principle is a published engagement plan and an invitation to comment open for at least 10 business days. Consultation should generally occur during project planning and design.

Data and Information NES (National Environmental Standard (Data and Information) 2026)

Requires data and information used for EPBC Act decisions to be representative, transparent, comparable, reusable and ethical. This includes respecting Indigenous cultural governance and protocols for culturally sensitive information.

What's next

• First Nations Engagement NES: The fifth NES is still being developed and no draft has yet been released. Its progress is linked to reforms of federal cultural heritage protection laws. For more information about the First Nations Engagement NES, see our Native Title Year in Review 2025-2026 article "First Nations Engagement under the EPBC Act reforms".
• Bilateral agreements: The Commonwealth, State and Territory environment ministers have agreed to have new or updated assessment bilateral agreements in place for all jurisdictions by mid-2027, and to keep working on approval bilateral agreements. The manner of assessment in any new or varied assessment bilateral agreement must be consistent with the four NES.
• Regulations: Regulations applying the NES to approval decisions, and supporting the other reforms, are expected before those reforms commence (by 1 December 2026).
• Projects already in the system: For actions referred before the new approval tests commence, the approval decision, and any later variation or extension of that approval, will not be subject to the new tests. However, decision-makers may still choose to have regard to the NES.

What proponents should do now

• Factor the NES into project planning and EPBC referral approaches now: Build the mitigation hierarchy into project design and gather the evidence and data the NES require.
• Consider whether to refer actions before the new approval tests take effect: An action referred before the tests commence will not be subject to them. However, early referral is only an option if the project is defined enough to support a valid referral.
• Start offsets and community engagement work early: Offsets must generally be secured, registered and under management before the impact occurs. Engagement should start during planning and design, so it can shape the project.
• Monitor the remaining reforms: Watch for the final regulations and the start of the new approval tests.

Want to know more?

• First Nations Engagement under the EPBC Act reforms, Native Title Year in Review 2025-2026. Discusses the forthcoming First Nations Engagement NES.
• EPBC Act reforms: most significant change to Australia's environmental law in decades, 14 May 2026. Outlines the key features of the reformed EPBC Act, including the NES and bilateral agreements.

Authors: Michael Voros, Partner; Gemma Witt, Senior Associate and Katrina Hall, Lawyer.