The Queensland Government has commenced consultation in respect of its review of the Financial Provisioning Scheme. The Government is seeking feedback from the resources industry, investors, landholders and the community about whether the Scheme is fit-for-purpose and strikes the right balance between managing financial rehabilitation risks and supporting the growth of, and investment in, the industry.
What is the Financial Provisioning Scheme?
The Financial Provisioning Scheme, established under the Mineral and Energy Resources (Financial Provisioning) Act 2018, is intended to ensure that adequate financial resources are available to address the environmental risks associated with resource activities (including coal, minerals, and petroleum and gas).
Essentially, the Scheme provides:
- for holders of authorities (resource activity holders of an environmental authority and holders of a small scale mining tenure permit) to pay a contribution to the scheme fund, or give a surety, for the authorities
- a way to manage the risk to the State of incurring costs and expenses if the holder of an authority or small scale mining tenure does not comply with the holder’s obligations under the authority or tenure
- a source of funds to the State for costs and expenses relating to preventing or minimising environmental harm, or rehabilitating or restoring the environment, or securing compliance with an authority or small scale mining tenure
- a source of funds to the State for:
- rehabilitation activities at land on which an abandoned mine exists
- remediation activities in relation to an abandoned operating plant
- research that may contribute to the rehabilitation of land on which resource activities have been carried out.
What is the focus of the review?
The Terms of Reference provide that the key areas of focus for the review will be:
- scheme performance and opportunities for expansion – reviewing if the Scheme is fit-for-purpose, financially sustainable and effective in managing rehabilitation and related financial risk, and whether there are opportunities for expanding the Scheme
- interjurisdictional competitiveness – assessing alternative approaches used in other jurisdictions and identifying opportunities to strengthen the Scheme
- investment environment and operator participation – assessing how the Scheme adapts to changing industry dynamics and investment models
- treatment of small, mid-tier and non-traditional operators – assessing whether small, mid-tier and non-traditional operators are supported while still retaining appropriate risk protection
- other considerations – broader considerations such as whether the risk classification framework remains fit-for-purpose, whether remediation and re-commercialisation of abandoned resource activities are appropriately supported, whether governance and administration arrangements of the Scheme are clear and options to improve design, support operator compliance and asset transfers.
What is not part of the review?
It has been made clear in the Terms of Reference that the following are outside the scope of this current review:
- review or recommend changes to the methodology used to calculate estimated rehabilitation cost (ERC) amounts under the Environmental Protection Act 1994 (EP Act)
- review or recommend changes to the residual risk framework or residual risk payment methodology under the EP Act
- reconsider or reassess individual ERC determinations, residual risk assessments, risk category allocations or other regulatory decisions made under existing legislation
- review environmental standards, rehabilitation requirements, Progressive Rehabilitation and Closure Plan requirements or other environmental obligations applying to resource activities.
What is the timeframe for the review?
The review commenced in August 2026, and public consultation commenced on 1 September 2026.
It is anticipated that the final report will be considered by the Government in 2027, although no specific date has been provided as to when the outcomes of the review will be known publicly.
We will continue to monitor the review and will provide updates once further details are known about the outcomes of the review and the next steps to be taken by the Government.
How to make a submission
Submissions can be made from now until 5pm on 30 September 2026. For more details, visit the submissions page here.
If you would like any further information regarding the Financial Provisioning Scheme and the review and/or any assistance with drafting a submission, please contact us here.
Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.
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