Queensland’s New Community Benefit System for Renewable Energy Projects

Introduction

Reforms to Queensland planning laws that took effect on 18 July 2025 established a new community benefit system for renewable energy projects. Under the Planning (Social Impact and Community Benefit) and Other Legislation Amendment Act 2025 (Qld) (‘Planning Amendment Act’), developers of wind farms and solar farms must now complete a social impact assessment and negotiate a legally binding community benefit agreement (CBA) with the local government before lodging a development application.

Securing a social licence in renewable energy is mandatory for advancing wind and solar projects across Queensland. This article explains the new community benefit system for property developers and project teams so you can conduct a compliant social impact assessment, negotiate a CBA, and manage timeline impacts on existing approvals.

Interactive Tool: Check If You Need a Community Benefit Agreement & Impact Assessment

The New Community Benefit System for Property Developers in Queensland

Identifying Which Renewable Energy Projects Require Compliance

Under the Planning Regulation 2017 (Qld) (‘Planning Regulation’), a new community benefit system applies to specific types of renewable energy projects in Queensland. Proponents for these developments must adhere to the new requirements, which include conducting a social impact assessment and entering into a community benefit agreement before lodging a development application.

The projects captured by this framework include:

• Wind farm developments: Projects of any size are captured under the new system.
• Solar farm developments: This applies to projects with a maximum instantaneous electricity output of 1 megawatt (MW) or more, capturing the majority of commercial solar projects.
• Battery storage facilities: This includes facilities with a maximum instantaneous electricity output of 50MW or more.

Furthermore, if a battery energy storage system is ancillary or related to a solar farm, it is considered part of the solar farm development application. As a result, it is subject to the same assessment process.

Impact Assessment for Large-Scale Solar Farms & Wind Farms

A significant change in the Queensland planning framework is that development applications for both wind farms and large-scale solar farms now require an impact assessment under Queensland’s planning and environment laws. Consequently, this change elevates the level of scrutiny these renewable projects undergo during the approval process.

The requirement for impact assessment introduces several key procedural steps, as follows:

• Public notification: The development application must be publicly notified, allowing community members and other stakeholders to be informed about the proposed project.
• Submissions: Interested parties can lodge submissions regarding the proposal, which the assessment manager is required to consider when making a decision.
• Third-party appeal rights: Parties who have made a properly made submission have the right to appeal an approval decision.

Under these reforms, the State Assessment and Referral Agency (SARA) acts as the assessment manager for all wind farm development applications and for solar farms with an output of 1MW or more. Ultimately, this centralises the decision-making process for large-scale renewable energy projects by shifting the responsibility from local government to the state level.

How Development Companies Must Conduct a Social Impact Assessment

Assessing Social Impacts on Local Communities

Before lodging a development application for a wind farm or large-scale solar farm in Queensland, proponents must complete a comprehensive Social Impact Assessment (SIA). This process is a formal evaluation of the project’s potential effects on the local community and is a mandatory requirement under the Planning Act 2016 (Qld) (‘Planning Act’).

The SIA must identify and assess a broad range of social impacts. These are defined under the planning framework to include effects on:

• The physical and mental wellbeing of community members;
• The livelihood of people in the area;
• Community values and culture; and
• The provision of and access to services and facilities, such as education, health, and emergency services.

The assessment must consider all potential effects, whether they are positive or negative, direct or indirect. It also needs to account for the cumulative impact of the development when combined with other existing or planned projects in the region.

Key areas of focus include:

• Workforce management;
• Local procurement opportunities;
• Housing availability; and
• Overall community wellbeing.

The findings from this process are used to develop mitigation strategies, often detailed in a Social Impact Management Plan (SIMP). Ultimately, the finalised SIA report provides the foundation for negotiating a Community Benefit Agreement (CBA) with the relevant local government.

Engaging with Local Government & Stakeholders

Meaningful community and stakeholder engagement is a mandatory component of the Social Impact Assessment process. Proponents must actively involve the local government from the early stages, including inviting them to participate in scoping the SIA study and any related community consultation activities. This collaboration is designed to ensure the assessment accurately reflects local priorities and concerns.

The Development Assessment Rules (Qld) (‘Development Assessment Rules’) outline new, more extensive public notification requirements for wind and solar farm projects to ensure the community is well-informed. These requirements include:

• Placing a public notice on a community notice board, such as at a local library or community centre, in each affected township;
• Giving written notice to all owners of adjoining lots and any lots located within 1500 metres of the project site;
• Providing notice to all local governments identified as being affected by the project’s social impacts; and
• Publishing a notice on the Department of State Development, Infrastructure and Planning website.

In addition to these mandated steps, developers are encouraged to undertake further public notification through channels like local radio broadcasts, online community groups, and advertisements in local publications. This thorough engagement process ensures the SIA is informed by a wide range of community perspectives before a development application is lodged.

Negotiating a Community Benefit Agreement for Your Renewable Energy Projects

Structuring Financial Contributions & Legacy Infrastructure

Understanding how to negotiate a renewable energy project agreement is crucial, as a Community Benefit Agreement (CBA) is a legally binding agreement designed to deliver tangible, place-based benefits to communities hosting these projects. While the Planning Act requires a CBA, it does not prescribe the specific form or content, leaving the details to be negotiated between the project proponent and the relevant local government.

The benefits outlined in a CBA can vary widely and may include both infrastructure development and direct financial contributions. Examples of potential community benefits include:

• Legacy Infrastructure: Providing new facilities such as a sports complex or library, or enhancing existing local infrastructure.
• Community Programs: Establishing training programs to upskill local community members or investing in services related to health, education, or environmental conservation.
• Financial Support: Making donations to a community benefit fund, offering sponsorships or grants, or providing annual payments for the life of the project.
• Local Economic Development: Implementing initiatives that support local businesses and procurement.

Although the value of contributions is negotiable, several local government policies suggest financial models based on project capacity. These often align with guidelines from other jurisdictions and typically involve annual payments calculated per megawatt of installed capacity. Common rates that have emerged include:

• $850 per megawatt per annum for solar farm developments.
• $1,050 per megawatt per annum for wind farm developments.

Another model is a percentage-based levy tied to the project’s capital value. For instance, the Banana Shire Council’s policy requires major projects valued over $50 million to contribute 0.7% of the total capital value or $650,000 (whichever is greater) towards providing new permanent housing in the region.

Navigating Mediation & Chief Executive Exemptions

The process of finalising a CBA requires proponents and local governments to negotiate in good faith, as mandated by the Planning Act. This involves disclosing relevant information and responding to proposals in a timely manner. If the parties cannot reach an agreement, there are pathways to resolve the impasse.

The parties may jointly request that the Chief Executive of the Department of State Development, Infrastructure and Planning refer the matter to mediation. This process is entirely voluntary, and either party can withdraw from it at any time. Furthermore, there are no statutory timeframes for mediation, and it does not guarantee a binding outcome.

Alternatively, a proponent can request that the Chief Executive issue a notice stating that a CBA is not required for the development application. This power is discretionary and may be exercised in exceptional or unusual circumstances. When considering such a request, the Chief Executive may evaluate several factors, including:

• the location, nature, and scale of the proposed development;
• the outcomes of any community and stakeholder engagement already undertaken;
• whether the parties have participated in a mediation process; and
• any social impact assessment previously carried out by the applicant.

Ultimately, if a proponent cannot secure an executed CBA or obtain an exemption notice from the Chief Executive, a development application for the renewable energy project cannot be properly made.

Timeline Impacts & Managing Paused Approvals for Real Estate Investors

Understanding the Retrospective Rules for Pre-Existing Applications

The planning reforms that commenced on 18 July 2025 have a retrospective impact on certain development applications for renewable energy projects in Queensland. Under the Planning Regulation, applications are classified as ‘pre-existing applications’ if they involve wind farms and solar farms with an output of 1MW or more that were lodged but not decided before this date.

These pre-existing applications are now considered not properly made, meaning proponents must restart the development application process entirely, regardless of how advanced their original application was. To proceed, they must remake the application to the relevant assessment manager and ensure it complies with the new community benefit system.

This compliance requires lodging specific documents, including:

• a social impact assessment report; and
• an executed community benefit agreement.

However, an exception applies if the application was already subject to a Ministerial call-in or direction notice before 18 July 2025.

Managing Future Change Applications for Existing Approvals

The new community benefit system also extends to future modifications of existing development approvals for wind farms and large-scale solar farms. When a proponent seeks to alter an approval, they must submit a change application.

The new requirements are triggered unless the proposed modification qualifies as a “minor change” as defined in Schedule 2 of the Planning Act. If the application is for a change that is ‘other than a minor change’, it must be accompanied by the following documents to be considered properly made:

• a social impact assessment report; and
• a community benefit agreement.

Ultimately, this applies unless the chief executive has issued a notice stating that an SIA or CBA is not required for the change.

Strategic Legal Guidance for Joint Venture Partners & Project Teams

Structuring Contracts & Ensuring Regulatory Compliance

A Community Benefit Agreement (CBA) is a complex legal document with long-term implications for renewable energy projects in Queensland. These agreements run with the land, meaning their obligations can bind future owners. Furthermore, a CBA will prevail over an infrastructure agreement to the extent of any inconsistency, making careful and strategic drafting essential.

When negotiating a CBA, project teams must consider several critical factors to ensure regulatory compliance and project viability. Key issues to address in the agreement include:

• Agreement Term: Defining the duration of the agreement, payment milestones, any conditions that must be met before the agreement is active, and clear end dates.
• Governance and Funds: Establishing clear arrangements for how financial contributions will be managed, spent, and accounted for, including any administration costs.
• Flexibility: Building in mechanisms to adjust the CBA if the project’s scale changes following development or environmental approvals.
• Future Changes: Acknowledging that a future change application for the project, unless it is a minor change, may require the CBA to be re-negotiated.
• Public Disclosure: Recognising that CBAs are public documents, which may affect confidentiality obligations with other parties like First Nations groups or neighbouring landholders.

Adapting to Regional Energy Hubs & the Developer Code of Conduct

The Queensland Government is replacing the ‘Renewable Energy Zones’ framework with a new system of ‘Regional Energy Hubs’. This legislative change is designed to coordinate new investment in gas, renewable energy, and storage projects. Ultimately, hub declarations will be market-led, based on private sector interest and development activity, while also aligning with community expectations.

In addition to the new planning laws, the government is developing a Code of Conduct for renewable developers. This Code will provide consolidated guidance and standards that developers are expected to meet when applying for a Generation Authority. As a result, it aims to set clear expectations for responsible behaviour and best industry practice when engaging with landholders, neighbours, and the wider community.

Conclusion

Queensland’s new community benefit system for renewable energy projects requires developers to complete a social impact assessment and secure a community benefit agreement before lodging a development application. These reforms impact new projects, pre-existing applications, and future changes to approvals, making strategic legal guidance essential for compliance.

To navigate these new requirements for your wind and solar projects, contact our property development lawyers at GRM LAW. Our Legal Team provides strategic guidance on conducting social impact assessments and negotiating community benefit agreements to ensure your project meets Queensland’s planning obligations.

Frequently Asked Questions

Disclaimer: This is general information only and is not legal advice. For advice on your circumstances, contact GRM LAW.