The review found farmers considered the laws "complex" and "inadequately considerate of the realities of agriculture". Farmers reported not being given enough notice that a species was being considered for the national threatened list, preventing them from having input into decision making.

Loading

The review recommended that the laws be amended to allow for more public comment on proposed listings of species.

The membership of the expert Threatened Species Scientific Committee, which advises the minister, should be expanded to include someone with both science qualifications and "practical experience in productive landscape management", it said.

When considering if a species or ecological community should be listed as threatened, the minister should be briefed on how agriculture would be affected and options to mitigate "social and economic impacts".

The review, which acknowledged that Australia's biodiversity was in a "poor" and worsening state,  also recommended that $1 billion be allocated over four years to establish a National Biodiversity Conservation Trust. The fund would provide market-based incentives to farmers and others to protect nationally significant environmental features, and may include paying farmers to retain and manage native vegetation.

Of about 6000 projects referred to the Department of the Environment and Energy for assessment in the past two decades, just 165, or 2.7 per cent, were agriculture-related.

The review said this might be because farming often involved small-scale practices, or that farmers did not know a referral was required or knowingly chose to avoid it.

However, Australian Conservation Foundation analyst James Trezise said the low referral numbers showed agriculture was "seriously under-regulated by national law".

"The review acknowledges biodiversity in Australia is in poor condition and is getting worse, yet overlooks the role of national law in protecting biodiversity," he said.

"It is disappointing the review essentially proposes to politicise the listing of nationally threatened species by encouraging industry advice on listing decisions. Listing decisions should be based on the best available science."

Ms Ley said the report "highlights the importance of strong environmental protection that Australians can understand, navigate and support".