What the latest environmental laws mean for Australia’s housing supply 

The overhaul aims to deliver faster approvals while safeguarding biodiversity — and could help clear a backlog of more than 26,000 housing projects. 

The federal government has passed its Environmental Protection Reform Bill, with support from the Greens in the senate, in what has been heralded as “a new era for the environment and productivity in Australia”.  

The bill amends the Environment Protection and Biodiversity Conservation (EPBC) Act, the nation’s key environmental law, which for decades governed how long large-scale projects that may affect matters of national environmental significance, including housing developments, take to secure federal approval. 

The government says the reforms strike a balance between protecting the environment and speeding up decision-making for projects in priority areas such as housing.  

Some measures that affect housing include:  

• A dedicated National Environment Protection Agency (EPA) to enforce new laws 

• A streamlined assessment pathway for projects that provide sufficient information upfront 

• Bilateral agreements with states to remove duplication in approvals 

• Regional planning tools to set “go” and “no-go” zones to guide development. 

According to industry bodies, more than 26,000 dwellings are currently caught in the EPBC approvals backlog.  

“Large-scale housing projects that turn the dial on national supply will no longer languish in years-long approval queues,” Property Council of Australia executive policy and advocacy director Matthew Kandelaars said. 

“This is a win for business, a win for investment and a win for the environment.” 

While the Greens backed the bill, citing “significant wins” for environmental protection, the party stressed the package is “still woefully short of what the climate needs”. 

Calls for momentum to clear the backlog 

Housing industry leaders said the changes could accelerate approvals and ease supply constraints. 

Housing Industry Association (HIA) managing director Jocelyn Martin said the use of bilateral agreements and strategic assessments for priority housing zones will help clear backlogs. 

“These two sets of reforms would make a marked difference in turning the dial on fast tracking new approvals and clearing the massive backlog of approvals awaiting the green light,” Ms Martin said. 

But she cautioned that ambiguity in several new definitions could undermine progress. 

“HIA’s key asks moving forward are for more emphasis on a dedicated transition plan including case studies and widespread industry education and engagement,” Ms Martin said.  

“We are also seeking commitment to a two-year post-implementation review once the legislation is passed to ensure the key reforms are delivering as intended.” 

Mr Kandelaars noted the property sector is the largest user of the EPBC Act and urged government to keep the housing taskforce in place until the National Housing Accord period ends in mid-2029.  

“Over 26,000 homes were found to be caught in unnecessary green tape, and we should continue to build momentum by keeping in place the taskforce that is a blessing for housing supply and is having a real impact.”  

Urban Development Institute of Australia president Oscar Stanley added that the reforms will only deliver if industry and government collaborate closely.  

“We need an environmental system that delivers transparency for both housing and the environment. That requires government and industry working side-by-side on standards that reduce duplication, remove ambiguity, and speed up assessments,” he said.  

“Most environmental challenges arise from unclear, overlapping or conflicting rules. The government now has a real opportunity to remove the subjective, inconsistent requirements that are holding back tens of thousands of homes across the country.” 

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