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Federal Budget: funding will hand federal environmental decision-making to states and territories

 

In the 2026 federal budget, the Australian government announced measures that could undermine protections for world heritage places like Kakadu and the Great Barrier Reef by accelerating a handover of federal environmental approval powers to state and territory governments, fast-tracking decision-making and establishing a new “pay to destroy” offsets scheme.

The Federal Budget allocates $153.5 million over four years to progress bilateral agreements with states and territories that would see decision-making under the newly reformed Environment Protection Biodiversity and Conservation Act 1999, and enhance the use of Artificial Intelligence (AI) in progressing environmental approvals. It will establish ‘environmental regulatory reforms that accelerate approvals by reducing duplication with states and territories and by modernising applications, including through the use of AI’.

Much of the reporting on the use of AI focused on plans to use an AI tool to help housing developers get projects through the Commonwealth's environmental assessment process. However, the funding for use of AI in environmental approvals, while intended to increase productivity, could have enormous negative impacts on natural places if the process allows developments such as mining or mass housing in new areas to proceed without appropriate oversight.

Conservative parties often use the distraction of ‘Reducing green tape’ as a justification for supporting destructive projects. It is deeply concerning to see an ALP government pursuing the same ideas.

The decision to fast track developments must also be seen in the context of massive cuts to nature protection elsewhere in the 2026 budget.

And the rapid development of AI (and the data centres that are required for AI to function) are facing growing backlash around the world because of the enormous demands of these centres for both water and electricity.

 

Please sign our open letter to the federal Treasurer Jim Chalmers opposing this move.

 

It will be sent at the end of May.

To add power to this campaign, please consider grabbing the text and sending it to your local federal MP via email.

 

Further information

From ReNew Economy: as the global race to establish more centres in Australia gains momentum, technology and environmental experts have questioned whether the nation can support their high energy and water demands

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