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Australia invests $45M to slash environmental approval red tape

01 May, 2026



The Australian federal government will invest more than AU$45 million to supercharge the transition to a more efficient environmental approval process, promising to fast-track major energy, housing, and resource projects across the country.

The funding package will be rolled out over four years. The primary goal is to incentivise state and territory governments to sign new bilateral agreements that eliminate the double-handling of environmental assessments.

Under the proposed reforms, states and territories that sign on will be empowered to conduct environmental assessments and approvals on behalf of the federal government.

This single touch approach is designed to reduce bureaucratic duplication while ensuring all projects adhere to strict new National Environmental Standards.

Prime Minister Anthony Albanese said the investment was a critical step in boosting national productivity.

“The landmark reforms we passed late last year are vital to protect our environment and to boost productivity in our economy,” the Prime Minister said.

“We strongly encourage state and territory governments to step up and sign up to a new bilateral agreement, to deliver a system that cuts red tape and duplication, and delivers environmental laws that are clear and consistent.”

To maintain public confidence, the government confirmed that strong safeguards will remain.

All bilateral agreements will be overseen by the new National Environmental Protection Agency, which is slated to commence operations on July 1 this year. This body will provide independent assurance that state-led approvals meet rigorous federal requirements.

Minister for the Environment and Water Murray Watt emphasised that the funding would ensure the new system is fit for purpose and delivers certainty for industry.

“The best way to speed that up is for state and territory governments to sign up to a new and improved bilateral agreement, and this funding will ensure we can enter better and more enduring agreements sooner,” the minister said.

“We’re deeply committed to ensuring our national environmental laws are fit for purpose, and we expect state and territory governments to work with us to achieve this important outcome.”

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