Australia has enacted a sweeping overhaul of its federal environment laws after a dramatic last-minute deal between the government and the Greens, ending a five-year stalemate over the fate of the country’s core nature protection regime.

The reforms to the (EPBC Act) were ratified in the Senate on the final sitting day of 2025, sealing a political agreement that survived intense negotiation and last-minute pressure from the opposition.

Under the new legislation, a statutory regulator — the National Environmental Protection Agency (NEPA) — will be established, delivering national environmental standards, stronger compliance powers, and higher penalties for serious breaches.

The law also ends longstanding exemptions: native forest logging and high-risk land clearing under regional forestry agreements will come under federal oversight within 18 months.

Coal and gas projects will lose their fast-track approval privileges, and developers will face stricter scrutiny under tightened agricultural land-clearing rules.

The deal came together after 72 hours of intense negotiations.

In a shift from previous years, the Greens — under their leadership — opted to support the reforms, provided key concessions were made.

Those included the removal of the fast-track pathway for fossil-fuel projects, accelerated reforms for native-forest protections from three years to 18 months, and stricter land-clearing controls.

The government agreed to these demands, laying the groundwork for final passage of the bill.

The government framed the outcome as both a win for environmental protection and a boost for certainty and productivity.

Prime Minister Anthony Albanese hailed the reforms as delivering “modern, fit-for-purpose” national environment laws.

The forestry sector was offered a A$300 million support fund to smooth the transition.

However, not all voices welcomed the speed or substance of the reforms.

David Pocock, an independent senator, described the rapid Senate process as offering “almost no time for scrutiny,” warning that the legislation still fell short of delivering full protection for threatened species and ecosystems.

Some business and industry groups warned the new agency could wield too much power and harm investment certainty.

The new legal framework marks a major turning point in Australian environmental policy — a long-awaited attempt to align federal protections with current ecological and climate challenges.

Whether NEPA’s expanded authority and the new safeguards will deliver stronger outcomes for Australia’s forests, waterways, species and communities now depends on how robustly they are enforced and whether future governments defend the reforms from rollback pressures.