The Federal Government has released a draft National Environmental Standard for Matters of National Environmental Significance (MNES Standard) along with a draft policy position as part of its proposed reforms to the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act). The MNES Standard is intended to set clearer expectations for regulated activities and aims to lift the quality and consistency of decisions relating to protected matters.
The Government has also released a draft National Environmental Standard for Environmental Offsets. Read our updated analysis on the Offset Standard.
Why the MNES Standard is being introduced
The Samuel Review highlighted that the current EPBC Act lacks clear outcomes and allows too much discretion in decision-making. In response, the Government proposes to amend the Act to allow the Minister to make, implement and review National Environmental Standards.
The MNES Standard is intended to work alongside the existing requirements of the EPBC Act and the broader reform package, including avoiding unacceptable impacts, applying the mitigation hierarchy, compensating for significant residual impacts and aligning with other standards and international commitments.
How the MNES Standard would apply
The Minister would only be able to approve an action if satisfied that the decision is not inconsistent with any prescribed National Environmental Standard, unless a rare national interest exception applies.
It is intended that the MNES Standard will:
Apply to all Matters of National Environmental Significance (MNES) and other matters protected under Part 3 of the EPBC Act.
Guide the Minister’s decision-making at the approval stage, including the imposition of conditions.
Apply to actions assessed under bilateral agreements with states and territories.
Be a statutory instrument setting legally enforceable outcomes and be complemented by a suite of other standards.
The intention is that the MNES Standard will be subject to a non-regression clause in the EPBC Act so that overall protections of the environment cannot be diminished over time.
Structure of the MNES Standard
The MNES Standard is structured around an overarching objective, a set of outcomes and four underpinning principles.
To protect, conserve, restore, recover and sustainably manage all MNES and other protected matters, consistent with the objects of the EPBC Act. Specific objectives are also articulated for each protected matter.
Decisions must provide for the protection, conservation and recovery of protected matters; promote diversity, abundance, resilience and integrity; and support ecologically sustainable development.
Actions should have regard to the mitigation hierarchy (avoid, mitigate, repair, offset).
Actions appropriately consider impacts to protected matters, including context and cumulative effects.
Actions with significant residual impacts are compensated through offsets only if prior steps in the mitigation hierarchy have been exhausted.
Actions are supported by proper evidence, including robust data, effective engagement with First Nations people and transparent consultation.
What proponents need to know
The MNES Standard will apply to actions that are determined to have a significant impact on a protected matter and which require approval under the EPBC Act.
Proponents are also expected to use the MNES Standard as a guide in designing actions to meet EPBC Act requirements.
Status of reforms and next steps
The MNES Standard is proposed to be made as a legislative instrument under section 514YD of the EPBC Act through the Environment Protection Reform Bill 2025. Public consultation on the MNES Standard is open until 30 January 2026.
The Federal Government aims to pass the Environment Protection Reform Bill 2025 and six related bills along with the MNES Standard and the Offset Standard in the last sitting week of 2025. The bills have been referred to the Senate Standing Committee on Environment and Communications for inquiry. The Committee is expected to release its report on 24 March 2026. Depending on parliamentary negotiations, the bills may be passed before the Committee’s report is finalised.
Our Environment and Planning and Climate Change and Sustainability teams are tracking developments closely. If you would like to discuss any aspect of the reforms or their potential impact on project planning and approvals, please get in touch with our team.