Page 15 of 69 • EPP/2015/1658 • Version 1.15 • Last Reviewed: 08/12/2023 Department of Environment and Science (QLD)
In addition, if the legally secured offset area is an environmental offset protection area declared under section 30 of
the Environmental Offsets Act 2014 or an area of high nature conservation value under section 19F of the
Vegetation Management Act 1999, the mechanism cannot be removed until the proponent has entered into an
agreed delivery arrangement for providing an offset for significant residual impacts to the area.
2.3.2 Financial settlement offsets
A proponent can meet an offset requirement for impacts on terrestrial or marine and aquatic prescribed
environmental matters, including koala related offsets, by providing a payment in accordance with this policy.
All financial settlement offsets delivered by the State or local government must adhere to the offset principles and,
to the greatest extent possible, achieve what all offsets must achieve in section 2.2.1 and the characteristics of an
offset site as described in section 2.3.1.6 and Chapter 2A.
For financial settlement offsets required by the State, the financial settlement payment amount must be calculated
in accordance with the Financial Settlement Offset Calculation Methodology in Appendix 4. The web-based
Financial Settlement Offset Calculator on the Queensland Government website
(https://apps.des.qld.gov.au/offsets-calculator/) may be used to support this calculation. The state is responsible for
delivering a conservation outcome from a financial settlement offset payment.
For financial settlement offsets required by a local government, an alternative financial settlement payment amount
may be determined provided that the:
• payment amount is no greater than what would have been required if calculated in accordance with the
Financial Settlement Offset Calculation Methodology in Appendix 4; and
• the local government is able to achieve a conservation outcome for the nature, size and scale of the impact on
the prescribed environmental matter(s) the subject of the offset payment.
In this regard, local government may use their own land or use money derived from sources other than financial
settlement offset payments to ensure a conservation outcome is achieved.
Section 19B of the Environmental Offsets Act 2014 requires that the authority holder must have entered into an
agreed delivery arrangement before starting impacts on the prescribed environmental matters to which the
condition relates; or any works for the stage that impacts on the prescribed environmental matter.
For financial settlement offsets (see section 24 of the Environmental Offsets Act 2014), unless agreement has been
reached that the impact and offset will be staged (refer section 2.4.3), the full amount of the financial settlement
offset must be paid prior to commencing the prescribed activity to which the offset condition relates. Once this
amount has been paid the authority holder's offset obligation has been met and a conservation outcome for the
impacted matter will be delivered by DES or the relevant local government.
Payments must be made:
• to the local government’s trust fund in relation to offset requirements for which the local government was the
administering agency. The trust fund is to be administered by the local government for the delivery of
environmental offsets to achieve a conservation outcome, and the requirements for the use of the trust fund are
outlined in section 89 of the Environmental Offsets Act 2014; or
• to the offset account administered by DES for all other financial settlement offsets. Further information on the
offset account and trust fund administration is provided in Appendix 7.
Specific requirements for local governments where the offset delivery is a financial settlement offset
When using the Financial Settlement Offset Calculation Methodology or web-based Financial Settlement Offset
Calculator for financial settlement offsets for MLES, the local government may attribute a rating and associated
multiplier to each local environmental matter that does not exceed a multiplier of 4. The following ratings and
associated multipliers can be used:
• MLES 1 which relates to a multiplier of 1;
• MLES 2 which relates to a multiplier of 2;
• MLES 3 which relates to a multiplier of 3; or
• MLES 4 which relates to a multiplier of 4.
These ratings and associated multipliers can be attributed, for example, through the local government planning
instrument or via the offset condition. For example, a locally significant riparian corridor may be attributed an offset