NSW Biodiversity Offsets Scheme (Australia)

The NSW Biodiversity Offsets Scheme (BOS) was established under the Biodiversity Conservation Act 2016 and replaced the earlier BioBanking Agreement Scheme (2008). It requires developers whose activities impact native vegetation or species to retire biodiversity credits equivalent to the assessed loss; credits are generated by landholders who enter voluntary Biodiversity Stewardship Agreements (BSAs) to permanently manage and protect habitat.

As of January 2026, 381 landholders hold active BSAs covering 109,911 hectares across New South Wales. The NSW Biodiversity Conservation Trust (BCT), an independent statutory body, holds A$467.74 million in the Biodiversity Stewardship Payments Fund (31 March 2025) and distributes over A$30.3 million per year in management payments. The Biodiversity Credits Supply Fund had purchased A$98.7 million worth of credits and on-sold A$97.5 million by April 2025.

Independent reviews have identified serious structural concerns. The 2022 NSW Audit Office performance audit found that 86% of ecosystem credit trading groups and 97% of species credits had never been traded, and that one in seven environmental offset conditions was non-compliant or potentially non-compliant. The 2023 Henry Review found the Act's operative provisions 'incapable' of supporting its biodiversity objectives. The Biodiversity Conservation Amendment Act (November 2024) introduced net-positive biodiversity outcomes requirements and improved market transparency; most provisions took effect March 2025.

Read the full analysis: https://www.environment.nsw.gov.au/topics/animals-and-plants/biodiversity-offsets-scheme