A NSW Government website

Offset variation rules and limitations

 

Overview

The variation rules establish the types of measures that can be used to offset impacts other than like-for-like offsets.

Removal of access to variation rules for proponents

Amendments to the Biodiversity Conservation Act 2016 mean that from 7 March 2025, approval can no longer be granted for proponents to use the variation rules, including for standard biodiversity certification.

If a proponent has an approval to use the variation rules that was granted before 7 March 2025, they can continue to use the variation rules.

The Biodiversity Conservation Trust can continue to use the variation rules as part of its broader hierarchy of options for meeting credit obligations.

For more information about the amendments to the Biodiversity Conservation Act please visit the Biodiversity Offsets Scheme reforms webpage.

Arrangements for proponents with an existing approval to use variation rules

Prior to 7 March 2025 approval to use the variation rules could be granted by the decision maker at the time of project approval through conditions of approval or consent.

If a proponent has an existing approval to use the variation rules, before applying the variation rules, they must demonstrate that they have taken reasonable steps to seek like-for-like credits as set out in the ancillary rules.

A proponent with an existing approval to use variation rules cannot use variation rules to offset impacts on threatened species or threatened ecological communities listed in the Ancillary rules: impacts on threatened entities excluded from variation [PDF 58KB].

This includes all threatened species and threatened ecological communities listed as critically endangered under the Biodiversity Conservation Act 2016 (NSW) or the Environment Protection and Biodiversity Conservation Act 1999 (Cth).

The Biodiversity Conservation Trust retains the power to use variation rules, without this restriction.

Variation rules for native vegetation (ecosystem credits)

The Biodiversity Conservation Trust, or a proponent with an existing approval to use variation rules granted prior to 7 March 2025, may use variation rules to meet obligations for credits associated with impacts on native vegetation, with vegetation in the same region as the impact (based on the IBRA region and subregions that are within 100 km of the outer edge of the impacted site) and:

  • where vegetation is in the same vegetation formation
  • where vegetation is in the same or higher offset trading group
  • if the impacted vegetation contained hollow-bearing trees, the offset must also contain hollow-bearing trees or artificial hollows.

Variation rules for threatened species not associated with a particular type of vegetation (species credits)

The Biodiversity Conservation Trust, or a proponent with an existing approval to use variation rules granted prior to 7 March 2025, may use variation rules to meet obligations for credits associated with impacts on threatened species not associated with a particular type of vegetation, with threatened species in the same local area as the impact (based on surrounding IBRA subregions that are within 100 km of the outer edge of the impacted site) and:

  • if the impact relates to a threatened plant, the offset must be a threatened plant that is the same or more threatened under the Biodiversity Conservation Act
  • if the impact relates to a threatened animal, the offset must be a threatened animal that is the same or more threatened under the Biodiversity Conservation Act.