The Biodiversity Offsets Scheme (BOS) was established under the Biodiversity Conservation Act 2016.
Under the BOS, applications for development or clearing approvals must set out how impacts on biodiversity will be avoided and minimised. The remaining residual impacts can be offset by the purchase and/or retirement of biodiversity credits or payment to the Biodiversity Conservation Fund.
Landholders can establish Biodiversity Stewardship Agreements to create offset sites on their land to generate biodiversity credits. These credits are then available to the market for purchase by developers, landholders or the Biodiversity Conservation Trust to offset the impacts of development or clearing. Sufficient funds are held in trust to support the long-term management of the biodiversity stewardship sites.