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The Coalition is urging Labor to adopt its “sensible” demands for environmental law reform, setting the stage for a showdown over the issue in the final week of parliament.
Labor is determined to deliver the largest reform to Australia’s environmental laws in 26 years by Christmas, requiring either the support of the Coalition or the Greens in the Senate.
The ongoing Senate inquiry into the legislation, launched last week, has heard that the laws need more clarity for business and the environment, with stakeholders advising the government not to rush.
Opposition leader Sussan Ley is offering Environment Minister Murray Watt a lifeline, stating the reforms can still pass next week if the Coalition’s demands are met.

“If the proposed changes are adopted, we will support the legislation next week,” she declared, signaling a potential shift in support depending on forthcoming amendments.

“However, if the government rejects sensible suggestions and chooses to put jobs at risk, then we will vote against them, with an open mind to revisit negotiations next year.
“We remain constructive and are seeking a path through … But Labor shouldn’t be rash — the Parliament cannot rush to failure here.”

On the other side, Angie Bell, the opposition’s environment spokesperson, has consistently maintained that the Coalition has been involved in “good faith negotiations.” However, she argues that the current legislative proposals are “unworkable,” claiming they hinder both productivity and investment.

The Greens have voiced their dissatisfaction, criticizing the laws for failing to put an end to native forest logging and for not including a climate trigger, which would necessitate that projects assess their climate change impact.

The Opposition is advocating for a clear and practical definition of the unacceptable impact test for projects with high pollution levels. They argue that the current definitions are overly complex and could lead to an excessive number of rejections.

Under the laws, Watt wants to establish the nation’s first-ever National Environmental Protection Agency, tasked with ensuring compliance.
However, the Coalition argues that any powers related to the assessment or approval of projects must remain with the minister, not a regulator.

Concerns have also been raised about the elimination of existing streamlined pathways for project approvals and the introduction of new emissions reporting requirements, which some see as burdensome.

Similarly, it requests a clearer definition for the industry on what constitutes a net gain or parameters for demonstrating how the project minimises harm or improves the environment.
The amendments include a review of penalties under the new laws, which include fines of up to $825 million for environmental regulatory violations.

“Our main issue is that the current definitions of unacceptable impact achieve the opposite of clarity. Instead, they increase ambiguity,” a committee member explained, highlighting the need for more precise language in the legislation.

‘Take the time’: Groups echo warning

Many of the demands are echoed by business groups, who are calling for consensus and bipartisan support for the laws to ensure lasting reform.
Speaking to the Senate inquiry on Thursday, Business Council of Australia CEO Bran Black said the government should “take the time to get the right amendments”.

“What we’re concerned about is that the existing definitions of unacceptable impact deliver everything but. What it does is enhance vagueness,” he told the committee.

Environmental groups have urged the government not to cower to industry, stating definitions need to be based on what the science says.
Central Land Council general manager Josie Douglas is urging the government to wait until next March and not “make the mistakes of the past”.
“It’s a truncated process and the bill is being rushed through without opportunity for the public or Aboriginal and Torres Strait Islander groups to provide input and feedback,” she told SBS News.
Adding that the “changes need to ensure the bill is strengthened and not watered down and not weakened”.

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