Grins as environment laws pass in 'win for the country'

The mammoth package of bills, inspired by a 2020 review of environmental laws, passed 89-34 in an extended sitting on Friday.

Prime Minister Anthony Albanese called it a historic day, describing the laws as a "win for business, a win for our natural environment, and a win for the country".

"They mean more investment, more jobs, more housing and more infrastructure," Mr Albanese told parliament.

"They protect something that everyone values and has a deep connection to: our treasured and unique natural environment."

In a fiery speech, Opposition Leader Sussan Ley declared a Labor-Greens alliance was back in business and the deal was economy-wrecking.

"The Minerals Council called it inferior and disappointing, energy producers have said this deal will put all approvals in the slow lane," she said.

"We're here not for lazy deals with the Greens. We're here for the people of Australia."

The prime minister praised the Greens for not allowing the "perfect be the enemy of the good" and chided the coalition.

"The leader of the opposition stood here just before and spoke about how good a year 2025 has been for them, and how bad it's been for us," he said.

"Well, may that continue."

The coalition was actively negotiating with the government as late as Wednesday night but Senator Watt said they failed to organise themselves such that a deal would be possible by his deadline.

"We've been told by business sources that there were senior members of the coalition front bench who just thought we should sit on this and wait until the New Year," he told reporters in Canberra.

"I don't know how much clearer I could have been that we were going to get this done this year."

Senator Watt rejected opposition claims the reforms would shut down native forestry and said key sectors like agriculture would be able to continue operating under the changes. 

"I challenge the Tasmanian government or any other coalition member to point to me where in the legislation it says we're shutting down native forestry," he said.

"What this is about is applying the same environmental standards that apply to every other industry to regional forest agreements."

Changes to agricultural land clearing would not block farmers from clearing their own land, he said.

They will instead prevent high-risk land clearing where trees have been in the ground for more than 15 years, and of land within 50m of the Great Barrier Reef catchment. 

"That's to deal with the issue of sediment runoff in the reef, which is a major threat," Senator Watt said. 

Australian Associated Press