With support from the Greens, Labor’s proposed changes are expected to pass through the Senate on Thursday, the last sitting day for parliament this year.
For months, the opposition – a coalition of the Liberals and Nationals – had also been negotiating with the government on the bill, with a focus on gaining more concessions for businesses.
Liberals leader Sussan Ley labelled the Labor-Greens deal as “dirty” and said it would lead to job losses in forestry.
The latest development comes five years after an independent review into Australia’s nature laws found they were no longer fit for purpose.
The government said the reforms would protect the environment for future generations and speed up projects in “key areas of national priority like housing, renewable energy and critical minerals”.
“Everyone agrees that the laws as they stand are broken and need to be reformed,” Albanese said.
“Getting these laws passed is vital to protect our environment and to boost productivity in our economy.”
Once passed, the new laws will also establish Australia’s first-ever national environment protection agency as well as a set of national standards which would include rules on protecting endangered wildlife.
It will also remove exemptions for “high-risk land clearing” and bring regional forest agreements under federal laws, instead of state ones.