The NSW Environmental Legislation Amendment Act 2025 represents one of the most comprehensive overhauls of environmental protection law in New South Wales in recent years. Passed by Parliament on 18 September 2025 and receiving assent on 23 September 2025, the Act amends eleven pieces of legislation and one regulation, with provisions continuing to commence throughout 2026.
KEY TAKEAWAY: The Environmental Legislation Amendment Act 2025 introduces doubled penalties for industrial chemical offences (up to $1 million), new executive liability provisions, and expanded EPA powers. Businesses must review their compliance frameworks before remaining provisions commence in 2026.
Background: A “Minor” Bill with Major Implications
When the NSW Government introduced the Environmental Legislation Amendment Bill 2025 on 6 August 2025, the second reading speech described it as containing “minor amendments” designed to “reduce duplication, increase consistency, remove loopholes, clarify areas of ambiguity and allow for appropriate environmental risk management practices.”
The reality proves more substantial. The Act strengthens environmental protection across multiple dimensions whilst recognising Aboriginal values and knowledges in environmental management. Key changes commenced on 12 December 2025, with remaining provisions to be proclaimed throughout 2026.
Asbestos Waste: New On-Site Reuse Provisions
One of the Act’s most practical changes affects how asbestos-containing materials can be managed during remediation projects. Previously, any reuse of asbestos waste was prohibited. The amended provisions now permit limited on-site reuse of asbestos waste where:
- The waste is generated on the same site
- The waste is lawfully remediated on site
- Management occurs under contaminated land frameworks and remediation management plans
Offsite asbestos waste reuse remains strictly prohibited to prevent cross-site contamination. This change addresses growing landfill capacity pressures whilst potentially reducing remediation costs for developers undertaking contaminated land projects.
EXAMPLE: A developer remediating a former industrial site can now incorporate stabilised asbestos-containing soil into engineered fill on the same property, provided this occurs under an approved remediation management plan. Previously, all such material required disposal at licensed landfill facilities.
Doubled Penalties for Industrial Chemical Offences
The Act aligns penalties for industrial chemical offences under the NSW Industrial Chemicals Environmental Management Standards (IChEMS) with the penalty regime for serious waste offences under the Protection of the Environment Operations Act 1997 (POEO Act).
For the most serious IChEMS offences, penalties have doubled:
| Offence Type | Previous Maximum | New Maximum |
|---|---|---|
| Dealing with prohibited industrial chemicals | $500,000 | $1,000,000 |
| Daily penalty for continuing offences | $60,000 | $120,000 |
CAUTION: The doubled penalty provisions apply immediately to any proceedings where sentencing has not yet occurred. Businesses with pending matters should reassess their exposure under the new penalty framework.
Pollution Incident Notification: Threshold Changes
The monetary threshold that triggers mandatory pollution incident notification under section 147(1)(a)(ii) of the POEO Act has increased from $10,000 to $50,000. This change reduces the regulatory burden on businesses whilst focusing enforcement resources on more substantial incidents.
However, businesses should note that incidents causing “not trivial” harm to human health or ecosystems remain reportable regardless of financial cost. The threshold change applies only to incidents where financial loss or damage is the primary trigger.
The Act also removes the NSW Ministry of Health from the list of authorities requiring notification of pollution incidents, aligning NSW with other Australian jurisdictions.
Environmental Management Plan Registry
A new public registry of Environmental Management Plans (EMPs) will enhance transparency for councils, developers, communities, and potential property purchasers. Under the amended Contaminated Land Management Act 1997:
- Site auditors must provide copies of statutory site audit statements and associated EMPs to the NSW EPA and relevant local councils
- The EPA will maintain records and publish EMP information on its website
- The register captures documents from the Act’s commencement forward
Previously, locating EMPs for specific properties proved difficult for stakeholders. The new registry addresses this transparency gap in contamination management.
Notice Registration on Land Titles
Clean-up notices, prevention notices, and prohibition notices issued under the POEO Act may now be registered against land titles upon application by the relevant regulatory authority or public authority. This change provides greater transparency to potential purchasers and other stakeholders regarding environmental issues affecting specific properties.
IMPORTANT: Property transactions involving land subject to environmental notices will now require enhanced due diligence. Purchasers should ensure title searches capture any registered environmental notices.
Expanded Executive Liability
Directors and managers now face expanded personal liability for environmental offences across all environmental protection legislation. The extended liability provisions apply to serious offences including:
- Providing false or misleading information to the EPA
- Obstructing EPA investigations
- Breaching environment protection licence conditions
Repeat waste offences have also been expanded to include failure to hold a licence, enabling courts to impose imprisonment for repeat offenders of waste-related offences.
Protection of Environment Policies: Broader Application
Protection of Environment Policies (PEPs) previously applied only to public authorities. The amended POEO Act now provides that PEPs may apply to “any person” conducting activities. This grants the EPA expanded ability to set environmental standards and drive behavioural change across industries.
Compliance with PEPs will be enforced through licensing conditions and considered during sentencing for environmental offences. Industry participants should monitor the development of any new PEPs that may affect their operations.
Environmental Justice in Sentencing
Courts sentencing offenders for environmental offences must now consider two additional factors:
- Impacts on Aboriginal cultural values and practices – recognising the disproportionate effect environmental harm can have on Indigenous communities and Country
- Environmental justice principles – considering whether environmental harm has disproportionately affected disadvantaged or vulnerable communities
These principles, previously considered only by the EPA when deciding whether to prosecute, now form part of judicial sentencing considerations. The changes commenced on 12 December 2025 and apply to any sentencing that had not yet occurred as of that date.
Protection for EPA Officers
A new offence prohibits harassment of NSW EPA officers exercising their powers and duties under environmental legislation. The offence extends to online harassment, ensuring officers can act decisively without fear of personal liability or intimidation.
Maximum penalties for this new offence are substantial:
- Corporations: $2 million plus $240,000 daily penalty
- Individuals: $500,000 plus $120,000 daily penalty
EPA Emergency Clean-Up Powers
The Act introduces new powers for the NSW EPA to direct people to leave areas where clean-up action is needed to address risks to human health from hazardous substances. Whilst protecting public safety, businesses should be aware that liberal exercise of this power may affect operations during environmental incidents.
Non-Delegable Licence Obligations
The POEO Act now explicitly provides that obligations imposed under environment protection legislation, including under environment protection licences, cannot be delegated or transferred to another person. Licence holders cannot delegate their responsibilities to contractors engaged to carry out any aspect of the licensed activity.
BEST PRACTICE: Review all contractor arrangements for licensed activities. Ensure contracts clearly address environmental compliance obligations whilst recognising that ultimate responsibility remains with the licence holder. Consider enhanced supervision and monitoring protocols for contracted works.
Key 2026 Deadlines
Several provisions carry specific 2026 deadlines:
- 12 September 2026: Deadline for livestock processing operations to apply for environment protection licences following amendments clarifying licensing requirements
- 1 July 2026: Large supermarkets must commence monthly food donation record-keeping under section 170H of the POEO Act
- 31 August 2026: Extension of concessional waste levy rate for prescribed shredder floc
- 1 September 2026: Extended repeal date for waste levy exemption for Mixed Waste Organic Outputs disposal
Preparing for Compliance
Businesses affected by these changes should take immediate steps:
- Review current licence conditions and ensure all obligations are clearly understood and cannot be delegated to contractors
- Update pollution incident response plans reflecting the new $50,000 notification threshold whilst maintaining procedures for incidents causing harm to health or ecosystems
- Brief directors and managers on expanded personal liability provisions
- Assess industrial chemical handling procedures given the doubled penalty exposure for IChEMS non-compliance
- Monitor EPA communications regarding new Protection of Environment Policies that may affect your operations
Conclusion
The Environmental Legislation Amendment Act 2025 delivers substantive reforms despite being characterised as containing “minor amendments.” With provisions continuing to roll out through 2026, businesses must proactively review their environmental compliance frameworks.
The combination of doubled penalties, expanded executive liability, non-delegable licence obligations, and new sentencing considerations creates a materially different compliance environment. Early preparation will position businesses to meet their obligations whilst avoiding the enhanced penalties that now apply to environmental breaches.
TIP: The EPA has indicated it will conduct education campaigns before remaining provisions commence. Subscribe to EPA updates and monitor the NSW Legislation website for proclamation notices specifying commencement dates for provisions not yet in force.
Law Quarter provides strategic legal advice for businesses navigating complex regulatory environments. Contact our team to discuss your environmental compliance obligations under the amended legislation.