What is a large-scale solar farm?
While the regime would apply to all wind farms, the community benefit scheme amendments would only apply to 'large-scale' solar farms. This is to be defined in the Planning Regulation as a project with greater than 1 megawatt generation or where the total area of land used for solar panels is greater than 2 hectares. It is not clear whether this is intended to include areas used for ancillary infrastructure, including behind-the-meter batteries.
The amendments do not relate to the generation of energy for use mainly on the same premises (e.g. installation of a solar farm for personal use).
The 1 megawatt threshold will capture the vast majority of commercial solar projects. In comparison, the general minimum threshold for a solar farm generation unit requiring registration with AEMO is 30 megawatts.
Further consideration is needed around how the social impacts of associated grid connection infrastructure would need to be factored into the SIA and CBA.
How would this impact existing applications and approvals?
Existing applications deemed not properly made
On commencement, all existing material change of use development applications (including 'other change' applications) for wind or solar projects would be deemed 'not properly made' and would return to the confirmation stage. Those applicants would then be subject to the new regime, and (where relevant) required to conduct a SIA and enter into a CBA. This is currently proposed to be the case regardless of how well progressed the application is.
While SIA requirements do not currently apply to wind or solar farms, in the period before the new regime commences, the Planning Minister may still choose to ‘call in’ development applications under the Planning Act to ensure they are subject to rigorous social impact assessment and community engagement. This has occurred recently in relation to a number of code assessable wind farm applications, including an approved wind farm.
Future change applications
From commencement, any application to make an 'other change' to a wind farm or large-scale solar farm development approval would be subject to the community benefit scheme. The change application would need to include a SIA report and CBA for the 'application as changed'. It is unclear whether this means that the SIA report and CBA only need to be responsive to the social impact of the change in isolation (as opposed to the existing project which was not subject to the community benefit scheme) and how that assessment might be made.
Are there any exemptions to the community benefit scheme?
The Bill includes avenues to exempt a developer from the need to conduct a SIA and enter into a CBA:
- the Chief Executive may issue a notice that a SIA or CBA is not required for an application, where the Chief Executive is satisfied that it is 'appropriate in the circumstances'. This is not further defined; or
- the Chief Executive may issue a notice that a CBA is not required where the development will only have minor or no social impact.
However, in those cases, SARA may still impose a 'community benefit condition' on any development approval granted. Such conditions may require the provision of, or contribution towards, infrastructure or any other thing for a community in the locality of the development.
How does this compare to other social impact assessment frameworks?
The concept of a SIA is not new in Queensland. Where an EIS is required for a significant project under the Environmental Protection Act 1994 (Qld) or State Development and Public Works Organisation Act 1971 (Qld), the EIS must generally include a SIA report and SIMP. This is further contemplated under the Strong and Sustainable Resource Communities Act 2017 (Qld) for large resource projects. However, distinct from the proposed Planning Act community benefit scheme, these SIA processes for resource and other projects can be conducted after the primary applications for the project have been made, and well into the assessment phase of the project.
On the other hand, a statutory requirement to enter into a CBA is a new concept in Queensland law, and in fact in Australia. While there has been a recent increase in the voluntary adoption of community benefit and benefit sharing mechanisms (particularly First Nations benefit sharing models), no Australian jurisdiction has to date legally mandated that developers enter into such agreements. However, the Victorian and NSW governments have introduced guidance on benefit sharing models and initiatives, and there is growing expectation that host communities should experience a proportionate level of benefits from the growth in renewable energy.
The work required as part of the SIA (in so far as it relates to workforce benefits) aligns closely with 'just transition' concepts related to workers and impacts of the transition to a net zero economy recently enshrined in Federal legislation under the Net Zero Economy Authority Act 2024 (Cth). The framework under that legislation requires the Net Zero Economy Authority to consult with community stakeholders, in particular employers of workers at closing coal and gas fired power stations, to ensure that appropriate supports are in place for transitioning workers to find new jobs in different industries (including in the renewables sector). Part of that consultation will involve engaging with businesses, unions and local government in regional areas to determine what work, training and reskilling/upskilling opportunities are available for transitioning employees in the local community.
For our analysis on global and Australian trends in benefit sharing as part of the energy transition, see our article: Shared Success: What is benefit sharing and why does it matter?
What are the key risks and uncertainties for industry?
A number of other matters will require further examination as public consultation progresses, and require particular attention by industry:
- Multiple public submission points: The SIA report must be informed by detailed consultation with stakeholders, which typically involves 'town hall' style sessions and targeted discussions with groups most likely to be affected by the development. After that process is completed and the CBA agreed, those same stakeholders (and any person with an interest in the project) would then have an opportunity to submit on the development application and in turn appeal a decision to approve the application. Later stage processes to obtain a Generation Authority under the Electricity Act 1994 (Qld) (if required for a project) will also provide for public submissions. Each of these steps will require careful management to avoid delays and approval risk.
- Point in time assessment: 'Front-loading' the SIA and CBA as a pre-lodgement requirement is intended to provide confidence in the project's social license early in the piece. However, the design, economics, and impacts of projects are often not well defined until much later in the development assessment process. This could lead to multiple revisions to a SIA report and amendments to a CBA before the application can be approved.
- CBA negotiation timeframes: If a developer and local government cannot agree on the terms of a CBA, the Bill provides for referral to mediation. This process is voluntary, not subject to prescribed timeframes, and can be ended at any time by either party. While the parties are subject to a statutory obligation to negotiate in good faith, there is no ability to refer the matter to a Court to make a binding determination on the terms of a CBA. Unless the Chief Executive agrees that the application can proceed without a CBA, this puts the local government in a strong negotiating position to halt the progress of wind or large-scale solar farm projects—all prior to development assessment commencing. Local governments may also charge the developer fees for considering SIA reports, negotiating CBAs and attending mediation.
- Interaction with other Council processes: Further consideration will need to be given into how a CBA may contemplate or interact with traditional infrastructure agreements (e.g. agreements for road upgrades). Guidance on the Bill refers to road infrastructure as an example of a community benefit. The Bill contemplates that a CBA would override an infrastructure agreement to the extent of any inconsistency. Further, it is not clear whether the SIA report may contemplate the extent of local government rates payable by developers as part of the positive benefit provided to the host community.
- Scope of CBAs: The content and nature of CBAs remains open-ended, including that they need not directly relate to the impacts identified in a SIA report. Guidance material contemplates that CBAs would largely be agreed on a project-by-project basis, though with some scope for CBAs to relate to multiple developments and parties. Given the cumulative and sometimes intangible nature of the social impacts that might arise in a community from the growing renewable energy industry, there may be opportunity for industry and local governments to work together to develop 'master' CBAs with local and regional-scale programs that developers may opt in to. This could include setting maximum benefit sharing rates on a per megawatt basis, as has been recommended in the NSW Department of Planning, Housing and Infrastructure's Benefit Sharing Guideline released in November 2024.
- Aligning community interests: A host community will inevitably have a variety of competing interests, or different views on how to offset social impacts and achieve community benefit. The local government may not in all cases agree with these views, or represent the interests which may be most impacted by a project. It remains to be seen particularly how First Nations interests may be incorporated into CBAs, and how the local government will ensure that benefits are distributed equitably to impacted stakeholders. Best practice guidance will be needed to inform the development of these agreements.
- Resourcing constraints: While SARA has had responsibility for the assessment of wind farms for some time, its new role as assessment manager for large-scale solar and the shift to impact assessment will mean a material increase in assessment load. Similarly, local governments will be tasked with reviewing SIA reports and negotiating and administering CBAs and related funds. It is not clear whether assistance will be provided to local governments to increase their capacity to manage these new processes.
How can I have my say?
The Bill has been referred to the State Development, Infrastructure and Works Committee for consideration. Public submissions can be made on the Bill until 12pm on 20 May 2025, with the Committee expected host public hearings on 2 to 3 June 2025 and to deliver its report on the Bill by 20 June 2025.
Feedback is also being sought on amendments to the DA Rules between 6 May 2025 and 3 June 2025.
Please reach out to MinterEllison's Environment and Planning team if you would like to understand the impact of the proposed changes to your projects, or would like assistance in making a submission.
