The NSW Government has introduced a suite of amendments to environmental legislation, seeking to both streamline and strengthen regulatory requirements.
While some of the amendments will have significant implications across the State (for example, changes to the threshold for reporting environmental incidents), other amendments are unlikely to impact industry.
Background
The Environmental Legislation Amendment Bill 2025 (NSW) was introduced to the NSW Parliament on 6 August 2025 by Minister Jihad Dib (Minister for Customer Services and Digital Government, Emergency Services, and Youth Justice).
The Bill contains changes to twelve (12) Acts and Regulations which deal with a range of environmental issues, including pollution, contaminated land, product lifestyle responsibility and climate change.
In the Second Reading Speech for the Bill, Mr Dib commented that
"The New South Wales Government went to the election
promising an EPA "with teeth", and we continue to sharpen
those teeth."
While the Bill contains some amendments which will have significant
and immediate implications for industry, it remains to be seen how
other amendments, such as making Protection of the Environment
Policies, will impact businesses.
A link to the bill can be found here.
Key Changes
Key changes introduced by the Bill are set out below.
Threshold for reporting pollution incidents increased from $10,000 to $50,000
Under the Protection of the Environment Operations Act 1997 (NSW) (POEO Act), pollution incidents that cause, or may cause, material harm to the environment must be reported to relevant authorities.
Harm to the environment is defined as being "material" if it involves:
- actual or potential harm to the health or safety of human beings or to ecosystems that is not trivial; or
- that results in actual or potential loss or property damage of an amount exceeding $10,000.
The Bill will introduced the $10,000 threshold to $50,000. It is noted in the Second Reading Speech that the $10,000 threshold had been in the POEO Act since it was enacted in 1997 and was too low.
The Bill also removes the requirement to notify the Ministry of Health as one of the relevant regulatory authorities.
Restriction on delegating obligations under environmental legislation (including EPLs)
The Bill introduces a provision into the POEO Act which prevents an obligation imposed under "environment protection legislation" 1 (including under an environment protection licence) from being delegated or transferred, unless otherwise expressly provided for in the relevant Act under which the obligation is imposed.
The precise intent and effect of this provision is not immediately clear, particularly in light of existing provisions in the POEO Act and Contaminated Land Management Act 1997 (NSW) which make clear when an occupier and/or licence holder will have responsibility for statutory environmental obligations.
Any existing contracts which allocate environmental responsibilities may need to be re-examined in light of this proposed provision.
Protection of the Environment Policies will now apply to business (in addition to public authorities)
The POEO Act provides for the creation of "protection of the environment policies" (also known as PEPs).
PEPs can set environmental standards, goals, protocols and guidelines, but are currently only required to be taken into account by public authorities when making decisions.
The Bill proposes to make PEPs applicable to businesses, in addition to public authorities. As at the date of this article, there are no PEPs in force, however the EPA is currently reviewing community submissions on a Sustainable Construction PEP.
Given that PEPs are not enforceable and there are not currently any in force, it remains to be seen what impact this change might have.
Environmental management plans to be given to EPA as part of statutory site audits
Site auditors will be required to provide the EPA with a copy of any Environmental management plan that needs to be implemented as a condition of a statutory site audit. The EPA will be able to make the EMP public, including through a public register.
Changes to financial assurances to be paid into the EPA Fund
The Bill also proposed changes to funds that could be paid into the EPA Fund maintained under the Protection of Environment Administration Act 1997 (NSW).
The following funds will now be able to be paid into the EPA Fund:
- amounts paid as a result of claims made on, or realising, financial assurances under environment protection legislation;
- amounts paid under an enforceable undertaking under the POEO Act for environmental projects, if the amounts are not spent on these projects; and
- amounts ordered to be paid by the NSW LEC for breaches of an enforceable undertaking under environmental protection legislation.
Increases to penalties under the IChEMS legislation
The Bill will align penalties under IChEMS legislation with serious waste offences under the POEO Act, which were doubled by the landmark Environment Protection Legislation Amendment (Stronger Regulation and Penalties) Act 2024 (NSW). IChEMS legislation refers to New South Wales Industrial Chemicals Environmental Management Standard, which manages environmental risks of industrial chemicals, such as PFAS.
For example, the maximum penalty for taking an action in relation to an industrial chemical which is listed on the IChEMS register and for failing to comply with phase out conditions has doubled from $500,000 to $1 million for individuals and $2 million to $4 million for corporations.
The Bill also makes it explicit that licence conditions for industrial chemicals can require the licence holder to comply with Commonwealth IChEMS minimum standards, even if the chemical is not listed on the NSW IChEMS register.
Executive liability provisions to be introduced into waste and circular economy legislation
The Bill introduces executive liability offences for directors and other managers for offences committed by a corporation under Plastic Reduction and Circular Economy Act 2021 (NSW) and Product Lifecycle Responsibility Act 2025 (NSW). For example, failure to comply with product stewardship requirements under both Acts will not attract executive liability.
Changes to EPA reporting requirements
The Bill aims to "streamline and update" the EPA's reporting requirements under the POEA Act, including by:
- reducing the frequency of the EPA's State of the Environment reporting to every 4 years from 3 years, to align NSW with other jurisdictions;
- reducing the frequency of the EPA's board reporting to every 2 years from annually; and
- requiring reporting on waste and litter to be included in the
State of the Environment report, not separately under other
environment protection legislation.
Footnote
1. See definition of "Environment protection legislation" is the Protection of the Environment Administration Act 1991 (NSW) (s 3), which relevantly includes obligations under the POEO Act, Contaminated Land Management Act 1997 (NSW) and others.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
