Unlocking Productivity: How Revamping Australia’s Environmental Laws Can Transform the Economy, Insights from a Former Treasury Head

Fixing Australia’s outdated environmental protection laws could be the top priority for the Albanese government. Ken Henry, a former treasury secretary and current chair of the Australian Climate and Biodiversity Foundation, believes these changes can boost productivity and help meet climate and housing goals.

In a speech this week at the National Press Club, he plans to urge federal parliament to finally update the Environment Protection and Biodiversity Conservation (EPBC) Act, which hasn’t seen significant changes in 25 years. “We’ve had enough reviews. It’s time for parliament to act. Let’s get it done,” he will say.

Murray Watt, the environment minister, is working on a new set of federal nature laws after a previous attempt faced pushback from mining groups and government officials in Western Australia. Henry argues that reforming our environmental laws is not just important for nature but also essential for boosting the economy. “Better laws could cut government costs and improve productivity. If we can’t change these laws, we shouldn’t expect to tackle tougher reforms,” he asserts.

Henry is not new to this discussion. He played a significant role in the 2010 tax review that led to the brief mining super profits tax. He has also supported a carbon price as a fair way to reduce greenhouse gas emissions. The idea of carbon pricing is resurfacing as the government examines how to meet climate targets efficiently. Various industry groups, like the Australian Council of Trade Unions, believe this should be part of the discussion.

With infrastructure projects needing approval from the EPBC Act—ranging from renewable energy to housing developments—Henry warns that without strong national laws, Australia will struggle to meet its goals of net-zero emissions by 2050 and building 1.2 million homes by 2030. “These projects must be handled quickly and effectively, protecting and restoring nature in the process,” he stresses.

However, there’s skepticism about reaching the housing target. Recent comments from Treasury officials suggest it may not be achievable, putting additional pressure on the government.

The Albanese administration has committed to establishing a federal environmental protection agency, but details about its power are still being discussed. Furthermore, the key recommendations from Graeme Samuel’s review of the EPBC Act, particularly regarding national environmental standards, are still under consideration. Watt seems keen to approach these reforms as a unified package rather than in parts, which could streamline the process.

Henry is expected to advocate for specific reforms in his speech, such as preserving national environmental significance, establishing consistent national standards, and fostering genuine cooperation among all government levels. He will also argue for a reevaluation of how ecologically sustainable development is applied in federal laws, stressing that a project-by-project approach is ineffective.

In a world increasingly focused on sustainability, the push for modernizing environmental laws is not just about protecting nature but also about creating a resilient economy. The call for these reforms reflects the urgent need for balanced development that respects both the environment and the economy.

For more information on the discussions surrounding these reforms, check out this article from The Guardian.

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