Budget to modernise environmental approval framework

The federal government's Federal Budget will earmark more than $500 million to modernise Australia's environmental approvals framework, with industry groups arguing the reforms could help ease housing supply constraints by reducing delays and duplication across the planning system.

Housing Industry Association (HIA) welcomed the funding package tied to reforms of the Environment Protection and Biodiversity Conservation Act, saying the investment signalled a shift toward a more technology-enabled approvals process capable of handling growing housing demand.

A key component of the package includes funding to improve environmental data systems and expand the use of digital tools and artificial intelligence (AI) in approvals assessments.

The industry has long argued fragmented approvals processes across federal, state and local systems have slowed project delivery, increased costs and created uncertainty for developers and investors.

HIA managing director Jovelyn Martin said the reforms have the potential to streamline lower risk applications on projects with more significant environmental impacts.

The measures are also expected to support greater coordination between jurisdictions through expanded bilateral agreements aimed at reducing repeated assessments across multiple agencies.

The announcement comes amid mounting pressure on governments to accelerate housing construction as affordability deteriorates nationwide and population growth intensifies demand for new homes.

Industry stakeholders have increasingly pushed for planning reform alongside broader infrastructure investment, warning that approval restrictions are constraining the pace at which housing projects can move from proposal to construction.