Marina reforms bring $825m penalty cap and new stop powers

By Daniel Okafor

$825 million caps the turnover-based penalty for a body corporate under the reformed EPBC Act, and the new National Environmental Protection Agency (NEPA) commenced operations on 1 July 2026.

The package represents the most significant reform of the Environment Protection and Biodiversity Conservation Act 1999 in more than two decades. Marina operators now face stronger federal oversight across routine operations, proposed dredging and other work at the boundary between land and water.

Tim Smith, principal at McInnes Wilson Lawyers, wrote: “Businesses can no longer treat environmental compliance as simply a cost of doing business.”

What changes on 1 July 2026?

NEPA operates independently from ministerial direction and will take a proactive enforcement approach focused on environmental outcomes. Its CEO directly oversees key compliance functions and certain permitting decisions.

The agency can also use expanded audit powers and third-party auditor frameworks. Enhanced penalties and Environment Protection Orders are in force from the same date, shifting the federal regime toward quicker intervention when operators or contractors depart from approval conditions.

The practical change is active federal oversight rather than another layer of administrative paperwork.

What can the new regulator stop?

NEPA can issue an Environment Protection Order, or EPO, when it reasonably suspects a breach of environmental law. Each order initially operates as a 14-day stop-work order. The agency may extend it once, taking the maximum possible term to 28 days per EPO.

Unapproved dredging, sediment contamination, chemical spills and other environmental incidents may prompt an order while investigators examine what happened. Even a temporary halt can disrupt marina operations and commercial activity.

A stop-work order can interrupt marina business while NEPA investigates, before any final enforcement decision.

How high can penalties go?

Courts may impose penalties based on the financial benefit an offender gained or the costs it avoided through non-compliance. Serious contraventions, including undertaking work without approval or breaching approval conditions, can attract the highest applicable penalty.

For body corporates, the maximum penalty is the greater of:

• 150,000 penalty units, worth $16.5 million;
• Three 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, or 2.5 million penalty units.

The previous maximum penalty for a body corporate was $16.5 million.

Financial exposure now depends on the benefit gained, costs avoided and the offender’s turnover.

What happens to expansion projects?

Legally binding National Environmental Standards will set clearer thresholds for an “unacceptable impact” on matters of national environmental significance. For marina developments, the framework promises more predictability but may apply a stricter test.

If a marina expansion, jetty extension or similar project exceeds those thresholds, NEPA may reject it early. The reforms also reduce reliance on traditional environmental offsets, increasing expectations that projects demonstrate a “nature positive” outcome rather than merely compensate for damage.

The reforms seek faster assessments, but the speed depends on stronger planning and more complete environmental information. Projects backed by high-quality data may qualify for expedited assessment. Operators may also receive approval for certain minor preparatory works while the main assessment continues.

For dredging, piling, channel deepening or marina expansion, operators should test sediment, assess habitats, model plumes and complete baseline marine surveys early. Better data may speed reviews, while stricter standards raise the bar for approval.

Which deadlines matter for operators?

The implementation timetable has two decisive stages:

• 1 July 2026: NEPA became operational, with expanded audit powers, third-party auditor frameworks, enhanced penalties and Environment Protection Orders in effect.
• 1 December 2026: The final phase is expected to commence, with streamlined assessment pathways and the completed National Environmental Standards framework expected to be fully operational.

Marina businesses should review contractor agreements, update environmental management plans and reassess future development pipelines. Particular attention should go to projects covered by historic EPBC approvals that may lapse or require reassessment under the new framework.

The next decisive regulatory milestone is 1 December 2026, when operators will learn whether the promised faster pathways and completed standards can move live projects forward.