Lawyers for Forests Inc. v Minister for Environment, Heritage and the Arts (No 2)

In this case, Lawyers for Forests Inc. filed a suit against the Minister for Environment, Heritage and the Arts, contesting the legality of the Australian Government's decision to provide financial assistance to the Government of Indonesia for forest conservation efforts. The case was heard in the Federal Court of Australia, which was tasked with determining the validity of the government's decision under the Environmental Protection and Biodiversity Conservation Act 1999.

The primary legal issue before the court was whether the Minister had the authority to provide financial assistance to another government under section 875 of the EPBC Act, and if the assistance could be considered an "action" that required approval under the act. The applicant argued that the financial support was not a direct action but rather an indirect one, necessitating approval. The Minister contended that the assistance did not fall within the definition of an "action" and thus did not require approval.

The Federal Court found in favour of the Minister, ruling that the provision of financial assistance to another government did not constitute an "action" under the EPBC Act. The court held that the term "action" was meant to cover direct activities that impact the environment, and not indirect financial support. Consequently, the Minister's decision to provide financial assistance did not require approval under the act. The applicant's appeal was dismissed, and the court ordered that the applicant pay the respondents' costs of the application.