What are the problems with the NSW offset scheme?

The NSW offset scheme has faced a litany of failures, including offsets that are never delivered or are insufficient, offsets on land that already had environmental protections, and integrity and conflict of interest concerns. Audits have found that the money paid by developers into the state's Biodiversity Conservation Trust has outpaced the availability of suitable offsets, resulting in ongoing environmental destruction without adequate compensation.

What are the concerns raised by experts about the federal government's proposed legislation?

Experts argue that the federal legislation, if enacted in its current form, would replicate the flawed system seen at the state level, despite the wealth of evidence demonstrating its shortcomings. They warn that the proposed legislation's plan to relax "like-for-like" rules for offsets and create a "top-up" provision to draw on taxpayer funds would further exacerbate the issues, facilitating the decline of endangered species and ecosystems.

Home / Environment / Experts Warn of Flawed Offset Policies Spreading Nationwide

Experts Warn of Flawed Offset Policies Spreading Nationwide

Q: How does the federal government's proposed legislation aim to address the issue of offsets?

The federal government's proposed legislation includes a plan to establish a "restoration contributions" fund, allowing developers to pay into it rather than finding their own offsets to mitigate the harm caused by their projects. However, experts warn that this approach risks replicating the problems seen in NSW, where pay-and-go offset schemes have failed to protect endangered species and habitats.

16 Nov

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Summary

Offsets have become the default policy for approving developments with environmental impacts
Pay-and-go offset schemes are failing, leading to continued habitat loss and species decline
Proposed federal legislation risks replicating the problems seen at the state level

Experts Warn of Flawed Offset Policies Spreading Nationwide

As of November 16th, 2025, experts and legal authorities are sounding the alarm over the federal government's plans to change the way developers compensate for environmental damage. The proposed legislation aims to establish a "restoration contributions" fund, allowing developers to pay into it rather than finding their own offsets to mitigate the harm caused by their projects.

However, this approach has already proven problematic in the state of New South Wales (NSW), where a similar system has led to a litany of failures. Audits have found that the money paid by developers into the state's Biodiversity Conservation Trust has outpaced the availability of suitable offsets, resulting in ongoing environmental destruction without adequate compensation.

Researchers warn that the federal government's plan to relax "like-for-like" rules for offsets and create a "top-up" provision to draw on taxpayer funds would further exacerbate these issues. They argue that offsets should be a last resort, used only when their environmental benefits are guaranteed, rather than becoming an "easy payment option" that facilitates the decline of endangered species and ecosystems.

The experts emphasize that the federal legislation, if enacted in its current form, would replicate the flawed system seen at the state level, despite the wealth of evidence demonstrating its shortcomings. They urge the government to reconsider its approach and prioritize genuine environmental protection over developer-friendly policies.

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