By Tim Smith, Principal, McInnes Wilson Lawyers
Tim Smith, McInnes Wilson Lawyers
The marine industry is charting a course towards a more sustainable future and environmental protection is the GPS. Following the passage of the Environment Protection Reform Bills, the new National Environmental Protection Agency (NEPA) commenced operations on 1 July 2026.
For marina operators, these reforms mark the most significant reform of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) in more than two decades.
Businesses can no longer treat environmental compliance as simply a cost of doing business.
The NEPA now has broad powers to investigate breaches and take decisive enforcement action, signalling a new era of federal environmental oversight.
As marinas operate between land and water, routine operations are placed at the forefront of environmental regulation and scrutiny. Understanding these reforms, is essential for daily operators and future growth.
AN INDEPENDENT REGULATOR WITH REAL ENFORCEMENT POWER
The NEPA operates independently from ministerial direction and will take a more proactive enforcement approach that prioritises environmental outcomes.
This new approach is reflected in the powers of the NEPA CEO, who directly oversees key compliance functions and certain permitting decisions. For marina operators it’s especially important to note that NEPA can issue Environment Protection Orders (EPOs), where it reasonably suspects a breach of environmental law. This is a 14 day stop work order which can be extended once, up to a maximum possible term of 28 days, per EPO.
These powers have practical consequences. Unapproved dredging, sediment contamination, chemical spills and other environmental incidents may prompt the EPA to issue a stop-work order while investigations are conducted. Even temporary disruptions can have significant operational and commercial consequences.
SIGNIFICANTLY HIGHER PENALTIES AND EXPANDED LIABILITY
One of the most important aspects of the reforms is the significant increase in penalties under the EPBC Act, with courts now able to impose penalties based on the financial benefit gained, or costs avoided, through non-compliance.
For serious contraventions, including undertaking an action without approval or breaching approval conditions, courts may impose the highest applicable penalty.
For body corporates, the maximum penalty is the greater of:
- 150,000 penalty units ($16.5 million);
- 3 times the combined value of any financial benefit obtained, and costs avoided through the breach; or
- 10% of annual turnover for the relevant 12-month period, capped at $825 million (2.5 million penalty units).
Previously, the maximum penalty for body corporates was $16.5 million.
NATIONAL ENVIRONMENTAL STANDARDS RAISE THE BAR
Additionally, the reforms see an introduction of legally binding National Environmental Standards (NES). The NES will establish clearer thresholds for what constitutes an “unacceptable impact” on matters of national environmental significance. For marina developments, this creates a more predictable but potentially stricter assessment framework. If a marina expansion, jetty extension or similar project exceeds those thresholds, the NEPA may reject it early in the process. The reforms also reduce reliance on traditional environmental offsets, meaning projects will increasingly be expected to demonstrate a “nature positive” outcome rather than simply offset impacts.
FASTER ASSESSMENTS, BUT HIGHER EXPECTATIONS
While the reforms aim to streamline approvals, faster assessment pathways will depend on stronger upfront planning and more comprehensive environmental data. Projects supported by high-quality information may qualify for expedited assessment processes, and certain minor preparatory works may be permitted during assessment, subject to approval. For operators considering dredging, piling, channel deepening or marina expansion works, investing early in sediment testing, habitat assessments, plume modelling and baseline marine surveys may help minimise approval delays.
KEY DATES FOR MARINA OPERATORS
The reforms are being implemented in stages, making timing an important consideration for both existing operations and future developments.
From 1 July 2026
- The National EPA is operational.
- Expanded audit powers, third-party auditor frameworks, enhanced penalties, and Environment Protection Orders are now in effect.
By 1 December 2026
- The final phase of the reforms is expected to commence.
- Streamlined assessment pathways and the completed National Environmental Standards framework are expected to be fully operational.
CHARTING THE COURSE AHEAD
To minimise risk, marina operators should review contractor agreements, update environmental management plans, and reassess future development pipelines, particularly where historic EPBC approvals may lapse or require reassessment under the new framework.
If you have any queries or need assistance in reviewing any of your commercial agreements, please do not hesitate to contact Tim Smith:
This story was reproduced from Waterline Magazine with permission from Marina Industries Association.
