Cost recovery: Part IV Environmental Protection Act 1986

The Environmental Protection (Cost Recovery) Regulations 2021 introduced fees for environmental impact assessment in Western Australia.
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The Environmental Protection (Cost Recovery) Regulations 2021 (the Regulations) were gazetted on 17 December 2021. The Regulations introduced fees and charges for the Department of Water and Environmental Regulation (the Department) to recover costs for proposals referred to the Environmental Protection Authority (EPA) under Pt IV Divisions 1 and 2 of the Environmental Protection Act 1986 (the Act). 

The Department developed a cost recovery model to implement fees and charges for the environmental impact assessment (EIA) process. The model enables the Government of Western Australia (the State Government) to meet the expectations of industry and the community in protecting the environment. The Department uses the funds received to provide an effective service while retaining strong environmental protections.

Part IV cost recovery fees

Fees are charged throughout referral, assessment and post-assessment of a proposal under Pt IV – Divisions 1 and 2 of the Environmental Protection Act 1986. The table below lists all fees which may apply. Fact Sheet 1 provides a summary of the fees by stage of assessment process.

The cost of assessments varies depending on the complexity of each proposal. Fact Sheet 2 provides an outline of the complexity fee and how this appears in an invoice. Please visit the Environment Online EPA Fee Calculator to estimate fees payable. 

EP Act referencePrescribed circumstanceFee amountFrequencyTimeframe for payment
s.38Referral of proposal to the EPA    $32,000Per referral
  • Proponent-referred: fee is payable on the day of referral.
  • Proponent-referred in accordance with a requirement under s38A(1) of the EP Act: fee is payable within 28 days after notice is given to the proponent that the EPA has decided to assess the proposal.
  • Referral by third-party: fee is payable within 28 days after notice is given to the proponent that the EPA has decided to assess the proposal.
s.38CRequest by proponent for approval to amend proposal$16,000 Per requestOn the day on which the request is made.  
s.38ERequest by proponent to declare proposal a derived proposal$16,000 Per referralOn the day on which the request is made. 
s.38FRequest by EPA for additional information from the proponent about the proposal$16,000 Per requestWithin 28 days after the day on which the request was made of the proponent. 
Part IV Division 1Assessment of a proposal    
 1. Base assessment fee$16,000 Once per proposalWithin 28 days after the day the proponent is given an invoice from the CEO.
 2. Estimated complexity fee  80% of the amount determined by the CEO under r. 5 for costs of the Department in assessing the proposal Once per proposalWithin 28 days after the day the proponent is given an invoice from the CEO.
 3. Final complexity feeThe total amount determined by the CEO under r. 5 for costs of the department in assessing the proposal LESS the estimated complexity fee.    
Once per proposal
 
Once per proposal

Within 28 days after the day the proponent is given an invoice from the CEO.

The CEO will determine the final complexity fee as soon as practicable after the EPA has provided its report to the Minister or the assessment is terminated. (Note: if the final complexity fee is less than estimated complexity fee, the CEO will refund the difference.)

s.40(2)(a)              Request by EPA for additional information from a proponent for the assessment of referred proposals $16,000Per request Within 28 days after the day on which the requirement was made of the proponent.
s.41A(3)Request by proponent for consent to minor or preliminary works relating to a proposal$16,000 Per requestOn the day on which the request is made.
s.43ARequest by proponent for approval of assessment of amended proposal $16,000Per requestOn the day on which the request is made. 
s.45CRequest by proponent for approval of amendment to an approved proposal, or amendment of conditions, relating to approved proposal (or both)$48,000 Per requestOn the day on which the request is made. 
s.45C(2)Minister requests further information relating to an amendment requested by the proponent$16,000Per request    Within 28 days after the day on which the request was made of the proponent.
 Submission of an EMP  for confirmation, endorsement or approval under implementation conditions applying in relation to a proposal $16,000 Per requestOn the day on which the EMP is submitted.
s. 46Inquiry by EPA into implementation conditions relating to an approved proposal$64,000Per inquiryWithin the 28 days after the day on which the proponent is given the invoice by the CEO.
s. 46AMinister issues interim conditions and procedures for a proposal$16,000Per noticeWithin 28 days after the day on which the proponent is given notice of the interim conditions and procedures.
s.40(2a)Independent peer review commissioned by the EPA VariablePer reviewWithin 28 days after the day on which the proponent is given the invoice.
n/aExternal costs incurred by the department for the purposes of receiving or assessing a proposalVariable Per cost incurredWithin 28 days after the day on which the proponent is given the invoice by the CEO. 
n/aAssessment report provided to the Minister when the assessment had commenced but was not completed by 1 January 2022 (transitional fee)$48,000 Once per proposalWithin 28 days after the day on which the proponent is given the invoice by the CEO.
n/aAnnual compliance fee for each approved proposalCompliance priority rating for approved proposal:
Low – $3,500
Medium – $7,000
High – $14,000
Very high – $21,000
Once per yearWithin 28 days after the day on which the proponent is given the invoice by the CEO. 
 
     

[1] In r. 3 and EMP refers to an environmental management plan, environmental management system or environmental improvement plan.

No fees apply to pre-referral meetings and activities but it is a good opportunity to discuss the potential costs of a proposal. 

FAQs - assessment

When did cost recovery begin? 

The Environmental Protection (Cost Recovery) Regulations 2021 (the Regulations) outlining fees and charges were gazetted on 17 December 2021 and came into effect on 1 January 2022. Fees for compliance activities came into effect on 1 July 2023. 

Why do you need to charge for an environmental impact assessment (EIA)? 

The introduction of a cost recovery model for an environmental impact assessment (EIA) is a step toward sharing the cost of protecting the environment between the community and those who obtain a benefit from environmental assessments. 

Cost recovery will enable the State Government to better meet the expectations of industry and the community in protecting the environment. The Department of Water and Environmental Regulation (the Department) will use the funds received to provide an effective service while ensuring strong environmental protection remains. 

How much will it cost proponents for an environmental impact assessment? 

The cost of undertaking an assessment of a new proposal will vary depending on the level of assessment and the complexity of individual proposals. Core fees include the referral fee ($32,000), assessment fee (between $80,000 and $976,000) and annual compliance fee (from $3,500 to $21,000). 

Other fees may apply based on requests from the proponent or additional activities required by the Environmental Protection Authority (EPA) (from $16,000 to $64,000). 

Invoicing of fees generally occurs when a stage or an activity commences. Payment of fixed fees is triggered when proponents request specific activities. 

See Fact Sheet 1 for an outline of when fees are incurred throughout the lifecycle of a proposal, including which fees may apply at each stage. 

Can the Department recover more than its costs? 

The powers provided under s.48AA of the Environmental Protection Act 1986 (the Act) do not provide for the Department to recover more than it costs to operate the scheme. Recovered funds are held in a special purpose account, which is subject to the auditing and reporting requirements of the Office of the Auditor General. Annual revenue and expenditure is published in the Department’s annual report. 

How were the fees determined and do they reflect an accurate assessment of cost? 

The fees are based on a cost model, which reflects approximately 80 per cent of the cost of undertaking environmental assessments. 

The cost model was reviewed by Marsden Jacob Associates in 2024-2025. Overall, they found “We [MJA] consider that the cost recovery model built for the development of Part IV fees and charges aims to balance simplicity and transparency and to achieve full cost recovery. No cost recovery model will be able to achieve all three, as those are conflicting aims. Noting this, we find that the cost recovery model is built appropriately and provides a good estimation of costs associated with assessments.” The Report to the Minister for Environment on the review of Part IV assessment fees charged under Division 1 of the Environmental Protection (Cost Recovery) Regulations 2021 provides further information about the review. 

What are the key stages for charging? 

Fixed, variable and compliance fees will be payable at various milestones (charging points) during the EIA process. 

These charging points include referral, determination, assessment, EPA report on recommendations, and implementation. Fact Sheet 1 provides an overview of charging points by stage. 

More information on how to interpret an Assessment Fee invoice is available in Fact Sheet 2

Will a proponent be charged for changing a proposal after it has been approved? 

Yes. The proponent must pay a fee of $48,000 if they request an approval of an amendment to an approved proposal, or amendment of conditions relating to an approved proposal, or both under s.45C of the Act. 

Will there be a transition period for industry or will charges begin in their entirety on 1 January 2022? 

Yes. Fees will not be charged retrospectively for work completed prior to 1 January 2022. Proposals already submitted and under assessment at that time will pay a fee of $48,000 for the preparation of the EPA report and recommendations. Other fees apply for additional requests and for proposals not yet at Stage 3 of the EIA process. 

Will charging for assessments be a disincentive for individuals and community groups to refer projects to the EPA? 

Third-party referrers will not be charged but where a third-party referral leads to a decision to formally assess a proposal, proponents will be required to pay. 

How does the Department report on the amount of fees collected and how they are used? 

The Department publishes revenue and expenditure, as well as the number of assessments, in its annual report. Reporting is based on an annual evaluation. This enables tracking and reporting of recovery and informs future reviews of fees and charges. Data on assessment activity underpins these evaluations, supported by the Department’s Environment Online system. 

Does everyone have to pay? 

The Regulations provide the Department’s CEO (Director General) with the discretion to consider fee reductions, waivers, refunds and extensions of time to pay Pt IV fees and charges. These are generally only granted in exceptional circumstances. See section 6 of the Policy: Implementing the Environmental Protection (Cost Recovery) Regulations 2021 (implementation policy) for an outline of these circumstances. 

Can I request an extension if I am not able to pay the fee within the timeframe specified? 

If you think you will not be able to pay your fee within the specified timeframe, you will need to submit a written request for a time extension using the form, Part IV EP Act fees - request for a fee payment time extension, waiver, reduction or refund. See the form and/or implementation policy for more information. 

What if I don’t pay my fee within the specified period? Will I be charged an extra fee for late payments? 

If you do not pay a fee within the specified period, interest will be charged on the outstanding amount at a rate of 3 per cent higher than the cash rate target, as determined and published by the Reserve Bank of Australia, in effect on the first day the amount became outstanding. Interest is not charged on any interest that accrues on an outstanding fee. See the implementation policy for more information. 

Can I request a waiver or reduction of the fee? 

The Director General will consider requests to waive or reduce fees on a case-by-case basis. These are generally only granted in exceptional circumstances. See the implementation policy for more information. 

What if I withdraw my application? Am I eligible for a fee refund? 

You may be eligible for a refund if you withdraw your application before we complete validation and formally accept your referral. You will generally not be granted a refund once your referral has been validated and accepted. See the implementation policy for more information. 

FAQs - withdrawal of Ministerial Statements

Who is eligible to request withdrawal of a Ministerial Statement under s.47A of the EP Act? 

Any proponent who has a Ministerial Statement and believes that: 

  • the proposal has been implemented and conditions have been complied with, or no longer need to be complied with 
  • where impacts of the implementation can be satisfactorily mitigated by way of licensing or some other form of control. 

How do I request a withdrawal of a Ministerial Statement under s.47A of the EP Act? 

The instructions and form outline various questions, including a description of the proposal (and amendments), stage of implementation, five-year history and current status of compliance with the Ministerial Statement, a report on the current environmental performance of the approved proposal, and the reason/details of the withdrawal request. Instructions to complete the form are also available on the website. 

Who decides if the Ministerial Statement can be withdrawn? 

The Minister for Environment delegated this decision to the Department of Water and Environmental Regulation (the Department). 

Why do I have to fill in another form? Surely the Department has all this information on file already? 

To ensure consistency and access to the most up-to-date information, we ask you to provide summary information. Some Ministerial Statements have also been in place for many years, and we may not have recent information on these. 

When can I expect a decision on my application to withdraw? 

The assessment period will vary depending on the complexity of each case. You will be notified once a decision is made. 

If my application to withdraw is refused, can I appeal the decision? 

No, you cannot appeal the refusal of an application to withdraw. 

If my application to withdraw is refused, how long do I have to pay my annual compliance fee? 

If your application to withdraw your Ministerial Statement is refused, you will receive an annual compliance fee invoice for the amount due based on your Compliance Priority Rating. Payment is due within 28 days. 

FAQs - annual compliance fees

What types of proposals attract an annual compliance fee? 

Active proposals – those which have been substantially commenced and are currently being implemented. 

Inactive proposals – those which have not substantially commenced or have been fully implemented. 

Why do I need to pay annual compliance fees for my Ministerial Statement when I haven’t previously? 

The commencement of the Environmental Protection (Cost Recovery) Regulations 2021 (the Regulations) introduced annual compliance fees for approved proposals under Pt IV of the Environmental Protection Act 1986 (EP Act). 

There was a transitional period for annual compliance fees, which became payable from 1 July 2023. 

The Regulations were designed to enable the State Government to better meet the expectations of industry and the community in protecting the environment. The funds received are used by the Department to provide timely and effective service while retaining strong environmental protections. 

No. One annual compliance fee will be applied for the primary contemporary Ministerial Statement of each proposal. 

If a proponent has multiple proposals, an annual compliance fee will be payable for each proposal. 

How is the annual compliance fee calculated? 

The Regulations specify that the annual compliance fee payable is based on a Compliance Priority Rating for an approved proposal. The Compliance Priority Rating is determined by the Department’s CEO (Director General) using the Interim Guideline: Determination of Compliance Priority Rating for Cost Recovery (Interim Guideline) and taking into consideration: 

  • the risk to the environment of implementing the proposal 
  • the complexity of the proposal 
  • the level of ongoing compliance by the proponent. 

The Department uses the Interim Guideline to establish the Compliance Priority Rating of proposals. The Interim Guideline will be subject to review and consultation so key stakeholders, including all proponents, will have an opportunity to provide feedback on the Department’s ongoing approach to determining the Compliance Priority Rating. 

How much are the annual compliance fees? 

The annual compliance fees specified in the Regulations are shown in the table below. 

Compliance Priority RatingAnnual compliance fee
Low$3,500
Medium$7,000
High$14,000
Very high$21,000

When will I be invoiced for my annual compliance fee? 

Annual compliance fees are sent out as soon as possible after the commencement of each financial year. 

Do I have to pay my annual compliance fee if I’ve applied for my Ministerial Statement to be withdrawn? 

Fees may continue to be due for ‘active’ proposals even where an application to withdraw the Ministerial Statement has been submitted. This is because the Department may continue to undertake compliance activities in relation to these proposals until any application to withdraw has been approved. 

Can I appeal my Compliance Priority Rating and the fees I need to pay? 

The Compliance Priority Rating and annual compliance fee is calculated in accordance with the Interim Guideline

The Regulations do not contain provisions to appeal your Compliance Priority Rating or fees payable. 

If you think your Compliance Priority Rating has been incorrectly assessed, please email compliance@dwer.wa.gov.au

How long do I have to pay my annual compliance fee? 

Payment is due within 28 days of invoice. 

Background and Review

In October 2019, the State Government released a discussion paper, Implementing cost recovery for Part IV of the Environmental Protection Act 1986, and sought community and industry feedback on proposed amendments to the Environmental Protection Act 1986 (the Act). One of the proposed amendments was to include a head power to enable the Department to implement cost recovery for activities under Pt IV of the Act. 

Consultation on changes to the Act was completed in January 2020. The Department received 101 written submissions and additional feedback from industry, community groups, individuals and government agencies. Feedback from the consultation was incorporated into the amendment Bills. 

Over a public consultation period of five weeks (between 20 September 2021 and 22 October 2021), the Department sought feedback on the proposed fees and charges outlined in the discussion paper and consultation draft of the Environmental Protection (Cost Recovery) Regulations 2021

Following the release of the discussion paper and draft Regulations, the Department held seven briefing sessions with peak industry organisations. 28 submissions were received during the consultation period. 

During the consultation period, the Department extended an offer to stakeholders to join a further briefing on the pricing model, with a focus on the financial information used to develop the fees. 

The Department used the feedback from the consultation process to inform the final fees, the implementation policy and the final Environmental Protection (Cost Recovery) Regulations 2021

The Department’s consultation hub contains further information, along with links to the consultation documents, including the consultation summary report

The Regulations required a review as soon as practicable after 1 July 2023, addressing the extent that the fees charged (excluding annual compliance fee) recover the costs incurred by the Department. In 2024 the Department engaged Marsden Jacob Associates to undertake the review. The consultant’s review, key findings, recommendations and the Department’s response were published in the Report to the Minister for Environment on the review of Part IV assessment fees charged under Division 1 of the Environmental Protection (Cost Recovery) Regulations 2021 in March 2026. The Department will implement the response over coming years. 

Where can I go for assistance?

If you require assistance relating to your proposal, please submit an enquiry through Environment Online

For general enquiries regarding fees, please email costrecovery@dwer.wa.gov.au

 

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