Environment Protection Reform (July Commencements) Transitional Rules 2026

Administered by Department of Climate Change, Energy, the Environment and Water

Legislation au F2026L00838 Rules In force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the Minister for the Environment and Water

 

Environment Protection Reform Act 2025

 

Environment Protection Reform (July Commencements) Transitional Rules 2026

Purpose

The Environment Protection Reform (July Commencements) Transitional Rules 2026 (the Transitional Rules) provides transitional rules for amendments to subordinate legislation associated with the commencement of Schedule 2 to the Environment Protection Reform Act 2025 (the EPR Act). The Transitional Rules commence on 1 July 2026 and support the establishment and of the National Environmental Protection Agency (the NEPA) and the conferral of powers and functions on NEPA’s Chief Executive Officer (CEO).

Authority

The Transitional Rules are made under item 715 of Schedule 1 to the EPR Act, which relevantly provides the Minister with power to make transitional rules relating to amendments and repeals made by the EPR Act, the enactment of the EPR Act or the National Environmental Protection Agency Act 2025 (the NEPA Act).

Sub-item 715(2) of Schedule 1 to the EPR Act relevantly allows the transitional rules to modify the effect of Division 3 of Part 3 of Schedule 2 to the EPR Act before the end of the period of 12 months beginning on the commencement of item 715 of Schedule 1. This means any transitional rules must be made before 1 December 2026.

Background

The NEPA Act commences on 1 July 2026 and establishes the NEPA, which is an independent Commonwealth environmental regulator focussed on environmental protection and the restoration of public accountability and trust.

The NEPA Act accompanies a suite of amendments to the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) made by the EPR Act. The amendments aim to deliver stronger environmental protection and restoration, more efficient and robust project assessments, and greater accountability and transparency in decision-making.

Schedule 2 of the EPR Act supports the establishment of the NEPA by providing transferring relevant powers and functions under the following Commonwealth environmental laws from the Minister or Secretary (as applicable) to the CEO of NEPA:

  • the EPBC Act;
  • the Environment Protection (Sea Dumping) Act 1981;
  • the Hazardous Waste (Regulation of Exports and Imports) Act 1989;
  • the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 and Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995;
  • the Product Emissions Standards Act 2017;
  • the Recycling and Waste Reduction Act 2020; and
  • the Underwater Cultural Heritage Act 2018.

In addition, the Environment Protection Reform Legislation Amendment (Consequential Amendments) Regulations 2026 (NEPA Consequential Regulations) and the Environment Protection Reform Legislation Amendment (Consequential Amendments) Rules 2026 (NEPA Consequential Rules) amend relevant subordinate legislation made under the above listed Acts to:

  • transfer relevant powers and functions at the subordinate legislation level from the Minister or Secretary (as applicable) to the CEO of the NEPA; and

 

  • make necessary consequential amendments to subordinate legislation to support the amendments by Schedule 2 of the EPR Act.

The NEPA Consequential Regulations and the NEPA Consequential Rules commence on 1 July 2026, to align with the establishment of the NEPA.

The functions and powers being transferred to the CEO include regulatory activities such as:

  • undertaking compliance and enforcement activities;
  • issuing, varying, suspending and cancelling permits and licences;
  • monitoring and auditing the operation of accreditations, bilateral agreements and bioregional plans under the EPBC Act; and
  • undertaking delegated activities, which may include assessments and decision making about development proposals, including approval conditions.

These functions and powers are regulatory in nature and appropriate for the NEPA as an independent regulator. The Minister retains responsibility for direction setting and Australian government policy relevant to these laws.

Impact and effect

The effect of the Transitional Rules is to apply the same applications and transitional provisions to the transfer of powers and functions made by the amendments to relevant subordinate legislation by the NEPA Consequential Regulations and the NEPA Consequential Rules as applies to the transfer of powers and functions made by the amendments to relevant primary legislation by Schedule 2 of the EPR Act.

Put another way, the Transitional rules will ensure that the transfer of powers and functions to the CEO of NEPA will occur in the same manner at both Act and instrument level.

This will provide for the smooth transition of powers under Commonwealth environmental laws and associated subordinate legislation to the CEO of NEPA upon the commencement of the NEPA on 1 July 2026.

Pre-conditions to making the Environment Protection Reform (July Commencements) Transitional Rules 2026

There are no other pre-conditions that must be met for the power under item 715 of Schedule 1 to the EPR Act to be exercised.

Consultation

The Transitional Rules provides for technical transitional matters that ensures the smooth establishment of the NEPA on 1 July 2026. On this basis, no consultation on the specific instrument was conducted.

However, the Australian Government consulted widely, including with environment and business groups, First Nations organisations, scientists and State and Territory Governments on reforms to national environment laws, including the establishment and implementation of the NEPA.

The Department has also consulted with a technical working groups and the public on the policy relating to the changes in the NEPA Consequential Regulations and the NEPA Consequential Rules. Feedback on this policy was generally positive and no negative views were raised.

Details and operation

Details of the Transitional Rules are set out in Attachment A.

The Transitional Rules are subject to the disallowance process under section 42 of the Legislation Act 2003 (Legislation Act) and the sunsetting regime set out in Part 4 of Chapter 3 of the Legislation Act 2003.

The Transitional Rules commence on 1 July 2026.

Other

The Transitional Rules are a legislative instrument for the purposes of the Legislation Act.

The Transitional Rules are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. The full statement of compatibility with human rights is attached to this explanatory statement (Attachment B).

ATTACHMENT A

Details of the Environment Protection Reform (July Commencements) Transitional Rules 2026

Part 1 – Preliminary

Section 1 – Name

  1.       Section 1 provides that the name of the instrument is the Environment Protection Reform (July Commencements) Transitional Rules (Transitional Rules).

Section 2 - Commencement

  1.       Section 2 provides that the Transitional Rules commence on 1 July 2026.

 

  1.       The note below the table provides that the table relates only to the provisions of the Transitional Rules as originally made. It will not be amended to deal with any later amendments of the Transitional Rules. The purpose of this note is to clarify that the commencement of any subsequent amendments is not reflected in the table.

 

  1.       Subsection 2(2) clarifies that any information in column 3 of the table is not part of the Transitional Rules. Information may be inserted in this column, or edited in this column, in any published version of the Transitional Rules.

Section 3 - Authority

  1.       Section 3 provides that the Transitional Rules are made under item 715 of Schedule 1 to the Environment Protection Reform Act 2025 (EPR Act).

 

  1.       Item 715 of Schedule 1 to the EPR Act relevantly allows the Minister, by legislative instrument, to make rules prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by any Schedule to the EPR Act; or the enactment of the EPR Act or the National Environment Protection Agency Act 2025 (NEPA Act).

 

  1.       Subitem 715(2) relevantly enables rules to modify the effect of Division 3 of Part 3 of Schedule 2 of the EPR Act in relation to a specified matter or thing.

 

  1.       Section 4 of the Transitional Rules modifies items 604 and 607 of Schedule 2 to the EPR Act, which are located in Division 3 of Part 3 of Schedule 2.

 

  1.       Sub-item 715(2) requires any rules modifying the effect Division 2 of Part 3 of Schedule 2 of the EPR Act to be made before the end of the period of 12 months beginning on the commencement day. Section 2 of the EPR Act specifies that the commencement day for Part 3 of Schedule 1 to the EPR Act (which contains item 715) is 2 December 2025. This means that the Transitional Rules must be made before the end of the 1 December 2026.

 

  1.   The Transitional Rules meet this requirement, as the instrument commences on 1 July 2026.

 

  1.   Sub-item 715(3) is a limiting provision and prohibits transitional rules that create an offence or civil penalty; provide powers or arrest or detention or entry, search or seizure; impose a tax; set an amount to be appropriate from the Consolidated Revenue Fund; or directly amend the text of the EPR Act or the NEPA Act. The Transitional Rules do not do or provide for these things.

Part 2 – Modifications of Division 3 of Part 3 of Schedule 2 to the Environment Protection Reform Act 2025

Section 4 – Modifications of Division 3 of Part 3 of Schedule 2 to the Environment Protection Reform Act 2025

  1.   Section 4 of the Transitional Rules modifies items 604 and 607 of Schedule 2 to the EPR Act.
  2.   Items 604 and 607 are transitional provisions that commence on 1 July 2026 to support the establishment of the NEPA and the contemporaneous transfer of existing powers, functions and duties to the CEO of NEPA under Parts 1 and 2 of Schedule 2 to the EPR Act.
  3.   Parts 1 and 2 of Schedule 2 to the EPR Act amend the following Commonwealth environmental laws to transfer relevant powers and functions relating to regulatory and compliance activities to the CEO of NEPA:
    •          the EPBC Act; or
    •          the Environment Protection (Sea Dumping) Act 1981; or
    •          the Hazardous Waste (Regulation of Exports and Imports) Act 1989; or
    •          the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989; or
    •          the Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995; or
    •          the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995; or
    •          the Product Emissions Standards Act 2017; or
    •          the Recycling and Waste Reduction Act 2020; or
    •          the Underwater Cultural Heritage Act 2018.
  4.   For a power, function or duty that is being transferred to the CEO when the NEPA is established on 1 July 2026, item 604 of Schedule 2 to the EPR Act has the effect that a thing done under an environmental law by a designated person before NEPA’s establishment that is still in effect when the NEPA is established will be dealt with as if the thing was originally done by the CEO rather than the designated person.
  5.   If a designated person is a party to proceedings under an environmental law in any court or tribunal when the NEPA is established on 1 July 2026, and the transfer of powers, functions and duties to the CEO means that after that time those proceedings may be instituted by or against the CEO of NEPA, then item 607 has the effect of substituting the CEO for the designated person in those proceedings.
  6.   For the purposes of items 604 and 607:
    •          a designated person is defined in sub-item 600(1) of Schedule 2 to the EPR Act to be the Minister, the Secretary of the Department or an SES Band 3 employee; and
    •          an environmental law is defined in sub-item 600(1) of Schedule 2 to the EPR Act as the Acts listed above in paragraph 13 (which are the Acts amended by Parts 1 and 2 of Schedule 2 to the EPR Act), as well as the Regulatory Powers (Standard Provisions) Act 2014 to the extent that it applies to any of those Acts.
  7.   The Environment Protection Reform Legislation Amendment (Consequential Amendments) Regulations 2026 (NEPA Consequential Regulations) and the Environment Protection Reform Legislation Amendment (Consequential Amendments) Rules 2026 (NEPA Consequential Rules) amend relevant subordinate legislation made under the above listed Acts to:

 

  •          transfer relevant powers and functions at the subordinate legislation level from the Minister or Secretary (as applicable) to the CEO of NEPA; and

 

  •          make necessary consequential amendments to subordinate legislation to support the amendments by Schedule 2 of the EPR Act.

 

  1.   The NEPA Consequential Regulations and the NEPA Consequential Rules commence on 1 July 2026, to align with the establishment of the NEPA.
  2.   Transitional arrangements are also needed to support the transfer of power and functions to the CEO by the NEPA Consequential Regulations and the NEPA Consequential Rules.

 

  1.   For this purpose, section 4 of the Transitional Rules modifies items 604 and 607 of Schedule 2 to the EPR Act so that the transitional arrangements made by those items (in relation to relevant Act amendments) are taken to also apply in relation to the amendments to relevant subordinate legislation made by the NEPA Consequential Regulations and the NEPA Consequential Rules.

 

  1.   This is achieved by:

 

  •          modifying the references to environmental law in both items 604 and 607, so that those references are taken to include a reference to a legislative instrument made under an Act listed in the definition of an environmental law (see paragraphs 4(1)(a), (b), (d) for item 604 and paragraphs 4(2)(a), (b) and (d) for item 607); and

 

  •          modifying the references in paragraphs 604(1)(b) and 607(1)(b) to ‘amendments made by Parts 1 and 2 of this Schedule’ to include a reference to amendments made by the NEPA Consequential Regulations and the NEPA Consequential Rules.

 

  1.   The intention is to all transitional arrangements relating to the transfer of powers and functions from the Minister or Secretary to the CEO of NEPA are consistent, whether the transfer is made at the level of the Act, or the level of the regulations and rules.

 

  1.   This will ensure minimal disruption for the affected regulatory schemes resulting from the establishment of the NEPA and the transfer of existing powers, functions and duties to the CEO of NEPA.


ATTACHMENT B

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Environment Protection Reform (July Commencement) Transitional Rules 2026

 

This disallowable legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
 

Overview of the legislative Instrument

The National Environmental Protection Agency Act 2025 (the NEPA Act) commences on 1 July 2026 and establishes the National Environmental Protection Agency (the NEPA), which is an independent Commonwealth environmental regulator focussed on environmental protection and the restoration of public accountability and trust.

The NEPA Act accompanies a suite of amendments to the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) made by the Environment Protection Reform Act 2025 (the EPR Act). The amendments aim to deliver stronger environmental protection and restoration, more efficient and robust project assessments, and greater accountability and transparency in decision-making.

Schedule 2 of the EPR Act supports the establishment of the NEPA by providing consequential amendments and transitional provisions for the NEPA Act that have the effect of transferring existing powers under the following Commonwealth environmental laws to the NEPA’s CEO:

  • the EPBC Act;
  • the Environment Protection (Sea Dumping) Act 1981;
  • the Hazardous Waste (Regulation of Exports and Imports) Act 1989;
  • the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 and Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995;
  • the Product Emissions Standards Act 2017;
  • the Recycling and Waste Reduction Act 2020; and
  • the Underwater Cultural Heritage Act 2018.

The Environment Protection Reform Legislation Amendment (Consequential Amendments) Regulations 2026 (NEPA Consequential Regulations) and the Environment Protection Reform Legislation Amendment (Consequential Amendments) Rules 2026 (NEPA Consequential Rules) amend relevant subordinate legislation made under the above listed Acts to:

  • transfer relevant powers and functions at the subordinate legislation level from the Minister or Secretary (as applicable) to the CEO of NEPA; and

 

  • make necessary consequential amendments to subordinate legislation to support the amendments by Schedule 2 of the EPR Act.

 

The NEPA Consequential Regulations and the NEPA Consequential Rules commence on 1 July 2026, to align with the establishment of the NEPA.

The functions and powers being transferred to the CEO of NEPA include regulatory activities such as:

  • undertaking education, compliance and enforcement activities;
  • issuing permits and licences;
  • monitoring and auditing the operation of accreditations, bilateral agreements and bioregional plans under the EPBC Act; and
  • undertaking delegated activities, which may include assessments and decision making about development proposals, including approval conditions.

The Environment Protection Reform (July Commencements) Transitional Rules 2026 (the Transitional Rules) provides transitional rules for the transfer of powers and functions in relevant subordinate legislation by the amendments in the NEPA Consequential Regulations and the NEPA Consequential Rules.

The Transitional Rules applies the existing transitional provisions at items 604 and 607 of Schedule 2 to the EPR Act to the amendments made by the NEPA Consequential Regulations and the NEPA Consequential Rules.

This provides a smooth transition of powers, functions and duties to NEPA’s CEO once the NEPA is established on 1 July 2026, and ensures all transitional arrangements relating to the transfer of powers and functions from the Minister or Secretary to the CEO of NEPA are consistent, whether the transfer is made at the level of the relevant Act, regulations or rules.

Human rights implications

 

The Transitional Rules does not engage any of the applicable rights or freedoms.

 

Conclusion

 

The Transitional Rules are compatible with human rights as the rules do not raise any human rights issues.

 

Circulated by authority of the Minister for the Environment and Water,

Senator the Hon Murray Watt

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.