Environment and Resource Management

Offset payments

An offset payment is a financial contribution made by an applicant for the purpose of providing offsets under the:

Offset payments allow applicants to meet their offset obligation at the time of approval. This can be an alternative to a land-based offset, as either an upfront or delayed offset in accordance with the rules of the associated policy.

The requirements for the provision of offset payments under each offset policy area are described below:

Biodiversity offset payments

Under the Queensland Biodiversity Offsets Policy (the policy), a biodiversity offset payment can be made to the ‘Balance the Earth Trust’ for purchasing land containing state-significant biodiversity values. Purchasing the land would contribute to either the Queensland protected area estate and/or a strategic corridor mapped by the Department of Environment and Resource Management (DERM).

The ‘Balance the Earth Trust’ may pool biodiversity offset payments to maximise the conservation outcome by making larger more strategic purchases. All offset payments include administrative costs to cover acquisition and management costs for a period of 20 years.

When can a biodiversity offset payment be used?

A biodiversity offset payment can be used by all applicants under the policy, except where the impact area:

Offset payments are not allowed for the taking of endangered, vulnerable or near threatened protected plants under the Nature Conservation Act 1992 (PDF)*. A payment however, may be provided for another eligible value in the same impact area. That is, an endangered plant species in the impact area can be translocated and another impacted value(s) can be offset using an offset payment.

Information requirements

For a biodiversity offset payment to be considered, an applicant must provide the following information at the time of application:

Where an offset payment is allowed, the applicant must provide the administering authority with an official receipt from the chosen trust prior to the development application being approved or any impacts occurring.

Calculating biodiversity offsets

The offset payments calculator must be used by applicants wanting to make an offset payment under the biodiversity and vegetation management offset policies. The offset payment is calculated based on three pieces of information:

Offset payment = land value + administration costs + management costs

Land value is calculated using the area of the impact site (ha) multiplied by five multiplied by the average rural land value per ha within the bioregion (PDF, 239K)* that the impact is occurring (Table 1).

Land value ($) = area of the impact site (ha) x 5 x average rural land value for the impacted bioregion ($)

Table 1. Average rural land value
Bioregion 1  Land value / ha 2 
Brigalow Belt $5000
Cape York Peninsula $5000
Central Queensland Coast $5000
Channel Country $5000
Desert Uplands $5000
Einasleigh Uplands $5000
Gulf Plains $5000
Mitchell Grass Downs $5000
Mulga Lands $5000
New England Tablelands $5000
North West Highlands $5000
Wet Tropics $5000
South East Queensland $32,000

1 A minimum threshold of $5000 applies in bioregions where land values are low

2 Land value is subject to change over time and will be adjusted by the department as required

Administration costs include the costs associated with establishing an offset such as the acquisition process and offset establishment. These costs have been moderated depending on the size of the area being offset. That is the smaller the impact area the smaller the administration cost (Table 2).

Table 2. Administrative costs of establishing an offset
Impact area size Percentage of administrative cost Cost
Five hectares or less 25% of administrative costs $15,000
Over five hectares but less than 20 hectares 50% of administrative costs $30,000
20 hectares but less than 50 hectares 75% of administrative costs $45,000
Over 50 hectares 100% of administrative costs $60,000

Management costs include the costs associated with:

The cost is calculated on a per hectare basis and is based on the offset area being managed for 20 years. Management costs also include a one off payment for monitoring for the 20 years.

Management costs ($) = area of the impact site (ha) x average management cost ($) + monitoring costs ($)

Example:A developer clears 12 ha of remnant vegetation in the Brigalow Belt bioregion. The offset payment for this site based on current land value, administration and the net present value (NVP) of annual management costs calculated over 20 years is as follows:

Vegetation management offset payments

A vegetation management offset payment is a payment made by an applicant under the Policy for Vegetation Management Offsets to an environmental trust approved by DERM for the purpose of providing an offset on the applicant’s behalf.

In accepting an offset payment, the approved trust must:

When can vegetation management offset payments be used?

Vegetation management offset payments can be used by all applicants under the policy except where an application does not meet all the performance requirements in the Regional Vegetation Management Codes and/or Concurrency Agency Policies.

Information requirements

For a vegetation management offset payment to be considered, an applicant must provide the following information at the time of application:

Koala offset payments

A koala offset payment is a payment made by an applicant based on a standardised dollar amount for every non-juvenile koala habitat tree lost through development as determined by the application of the Offsets for Net Gain of Koala Habitat in South East Queensland Policy (PDF, 76K)* A payment of $920 per tree lost is based on the estimated average cost per hectare of acquiring land outside the urban footprint in the South East Queensland Koala Protection Area, plus the costs of planting and maintaining the trees until they are established, divided by an average density for bushland habitat, being 250 trees per hectare.

Who receives and administers the payments?

The agency that receives and administers the payments is determined by the instrument under which the obligation is provided.

Where an offset is required under the provisions of the South East Queensland Koala Conservation State Planning Regulatory Provisions (PDF, 182K)*:

Applications for community infrastructure designations within the South East Queensland Koala Protection Area as required by provisions of the State Planning Policy 2/10: (PDF, 152K)* Koala Conservation in South-East Queensland, the offset payment will be provided to DERM or DERM’s agent as required.

A self assessment of state-supported community infrastructure activities within the South East Queensland Koala Protection Area as required by the State Government Supported Community Infrastructure Koala Conservation Policy (PDF, 93K)*, the offset payment will be provided to DERM or DERM’s agent as required.

Further information

For further information, please refer to the following offset web pages:

For questions and enquiries relating to offset payments contact your nearest DERM business centre or alternately you can email the offsets team via offsets@derm.qld.gov.au.

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Last updated 9 March 2012

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