Defence sites sit on Commonwealth land and fall under the federal EPBC Act 1999. That covers project approvals and reporting where the work could affect nationally significant environmental values. But sitting on federal land does not let a defence base ignore state EPA discharge limits or skip the trade waste permit it needs from the local water utility.
The EPBC Act binds the Commonwealth under Section 528, but it operates concurrently with state environmental legislation rather than overriding it. In practice, state EPAs generally lack direct enforcement reach on Commonwealth defence land because state environmental statutes bind their respective state Crown, not the Commonwealth. Enforcement against Defence for environmental breaches flows through Federal Court civil action under EPBC section 475, inter-governmental administrative processes, or Ministerial referral. However, trade waste agreements with state-owned water utilities (Sydney Water, Hunter Water, Yarra Valley Water, Unitywater or Water Corporation, depending on location) operate as commercial contracts under state water industry legislation. Defence enters them as a customer, and the utility’s acceptance criteria apply contractually.
Three layers of accountability sit on top of each other. The EPBC Act sets the baseline for project approvals. The state EPA sets the discharge limits, the rules for classifying sludge, and the reporting obligations. The local water utility holds the trade waste permit. That permit puts a dollar-per-kilogram surcharge on every kilogram of pollutant above the agreed limit, including chemical oxygen demand, biological oxygen demand, suspended solids, nitrogen, phosphorus and grease. Under Sydney Water’s trade waste regime (representative of east-coast metro standards), industrial customers must not discharge oil, fat or grease to the sewer system, petroleum hydrocarbons are limited to 10 mg/L, and treated discharge to stormwater must show no visible oil sheen regardless of jurisdiction.
On bases dealing with PFAS contamination, PFAS NEMP 3.0 adds another layer. The Defence PFAS Construction and Maintenance Framework defines water handling protocols for any earthworks or construction on PFAS-impacted Defence land, and the Defence PFAS Investigation and Management Program tracks all 28 priority sites.
Defence-specific governance frameworks sit on top of everything. The Defence Estate Quality Management System (DEQMS) is the umbrella governance framework for environmental management across the Defence estate. Every contractor working on a Defence site is bound by it, through the Environment and Heritage Manual (EHM) and the Pollution Prevention Management Manual. The Defence Industry Security Program (DISP) provides the security-clearance framework for contractors and suppliers, with four membership levels (Entry through Level 3) aligned to information classifications. DISP membership accelerates pre-qualification on most Defence work.
When a treatment system fails on a defence base, the costs add up quickly. The trade waste bill climbs because the water utility charges per kilogram of pollutant above the limit. The state EPA can issue breach notices. On a PFAS-impacted site, a failure pulls in the Department of Defence’s own environment compliance function through reportable contamination events.