Tuesday's federal budget will include more than $500 million in funding to implement environmental laws, which Treasurer Jim Chalmers said would help speed up approvals for housing, energy and critical minerals projects.
Passed in late 2025 after a tumultuous five-year process, the Environment Protection and Biodiversity Conservation Act promised to reduce layers of duplication where proponents had to secure approvals from both commonwealth and state governments.
The environmental regime would reduce compliance costs and cut red tape, making it easier and faster to build, and making Australia a more attractive place in which to invest, Dr Chalmers said.
"More efficient approvals mean projects get off the ground quicker and Australians get into homes sooner," he said.
"This is a big investment that will make our economy more productive and will help to get crucial projects going in housing, energy and critical minerals."
But critical bilateral agreements that will give greater powers to the states to handle the assessment and approval of both layers of regulation are yet to be signed, meaning the full benefits of the reforms have not been realised.
Part of the budget boost will go to the states to fund extra staffing and resources needed to take on the extra approvals work and help convince them to sign up.
The Albanese government has already signed a memorandum of understanding with Western Australia and is optimistic about signing bilateral agreements with other states, but negotiations have stalled with Queensland.
Premier David Crisafulli continued to call on the federal government to reverse its decision to exclude oil exploration projects from access to use a fast-tracked approvals pathway under the laws.
"Until we have that dead hand of the (act) removed, the ability to really get cracking in the Taroom Trough (oil basin) will be hindered," he told reporters on Sunday.
The Queensland and federal governments have not been in talks about a new bilateral agreement in weeks.
The Commonwealth warns Queensland's decision to launch a year-long state productivity inquiry into the act could further delay the implementation of the faster approvals pathway.
On Sunday, the government announced the budget would include $2 billion to help states and territories build sewers, roads and other enabling infrastructure holding up housing developments.
Centre for Independent Studies chief economist Peter Tulip said it was one of the most cost-effective ways the Commonwealth could boost supply.
"It shows the government is putting their money where their mouth is, which makes their messaging more credible," he told AAP.
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