2026 marks a turning point in Australia regulatory landscape. After years of legislative development, the focus is shifting decisively from policy creation to practical implementation and enforcement.
In this interview, Henrietta Tweedy, Legal Content Owner, at ERM Libryo, shares insights on the key regulatory and environmental, health and safety (EHS) trends that organizations across the region need to be aware of as they navigate the year ahead.
What is the key regulatory and EHS trends organizations need to be aware of as we enter 2026?
Regulatory change across Australia is increasingly defined by the implementation and enforcement of legislation that has already been enacted, rather than the introduction of entirely new policy frameworks. Henrietta identified three major regulatory trends that will shape the compliance landscape in 2026:
- Commonwealth environmental law reform moves into implementation
Status: New law
Australia’s reformed Commonwealth environmental framework enters an implementation and transition phase in 2026 following passage of the Government’s environment reform package in late 2025. This includes the Environment Protection Reform Act 2025 (Cth), which amends existing Commonwealth environmental legislation and provides for phased and proclamation-based commencement of key provisions across 2025 and 2026.
As these enacted changes take effect, organizations will need to operate under amended statutory arrangements, including updated environmental assessment and approval settings, revised compliance obligations attached to approvals and conditions, and enhanced regulatory oversight. The reforms also support greater consistency and transparency in compliance monitoring and enforcement as the new legislative framework is progressively implemented.
- Safeguard Mechanism obligations continue to tighten
Status: Ongoing implementation of enacted law
The ongoing implementation of Australia’s strengthened Safeguard Mechanism remains a key regulatory trend for large emitters in 2026. Organizations must continue to comply with enacted amendments under the Safeguard Mechanism (Crediting) Amendment Act 2023, which amended the statutory Safeguard Mechanism framework under the National Greenhouse and Energy Reporting Act.
These legislative amendments set out a framework under which compliance requirements tighten over time, including through declining facility baselines and the use of crediting mechanisms. As a result, accurate emissions measurement and reporting remain central to ongoing compliance.
- State EPA enforcement powers expand through enacted and proposed reforms
Status: Mixed – enacted and proposed law
At state level, 2026 is characterised by continued strengthening of EPA enforcement powers through published legislative reform. This includes both enacted amendments and reform packages progressed through Parliament in 2025.
Key examples include proposed amending legislation in New South Wales intended to update core environmental compliance and enforcement frameworks, and the Environmental Protection (Powers and Penalties) and Other Legislation Amendment Act 2024 (Qld) (enacted), which expands EPA enforcement powers and strengthens penalty settings under Queensland’s environmental legislation.
Are there particular industries where these trends will have the biggest impact?
Some sectors will feel this more than others. When asked which sectors would feel the greatest impact from these regulatory changes, Henrietta highlighted:
- Major projects (energy, resources, infrastructure, property): Commonwealth environmental approvals and conditions)
- Large emitters (resources, manufacturing, LNG): Safeguard Mechanism compliance
- NSW and QLD regulated entities: expanded state EPA enforcement and penalty powers
What this means in practice for 2026
Looking ahead to the practical implications of these trends, Henrietta emphasized that the most significant regulatory impacts in 2026 stem from the commencement and continued operation of enacted legislation, rather than new policy development. Across Australia organizations will need to manage:
- compliance with new and amended statutory approval, reporting and monitoring requirements;
- increasing regulatory focus on implementation quality, data integrity, governance and assurance; and
- overlapping and interacting obligations across jurisdictions, particularly for multinational groups.
Effective preparation for 2026 requires clear visibility of applicable legislative instruments, an understanding of staged commencements and transitional arrangements, and systems capable of demonstrating ongoing compliance with statutory approval, reporting and monitoring obligations.
Cority integrates seamlessly with ERM Libryo enabling our customers to identify, understand and track their legal obligations. Whether it’s new law applicable to a particular operational site or updates to existing law, we notify users immediately about anything relevant that needs their attention. Reduce your risk of non-compliance today.
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