'Robust' negotiations end Coalition division over koala policy

The biggest lesson of all, said one minister on condition of anonymity: "Toole was able to deliver what Barilaro could not... deliver for the bush, while strengthening the government."

The resulting policy is not substantially different to what was proposed before the National Party put the Coalition in crisis. Unchanged are the 123 tree species considered critical to koala habitat, as well as requirements for DA approvals outside day-to-day farming.

The definition of "core koala habitat" has been refined to mean it must be highly suitable habitat with koalas present and with a confirmed record of koalas, or highly suitable with a record of koalas in the past 18 years.

It now means that if a farmer saw a koala up a power pole, the area would not be considered high quality koala habitat.

Mr Toole said the result met the needs of farmers and koalas.

“This is a balanced outcome that will protect koalas and protect farmers’ property rights. This was a party position, one the Deputy Premier John Barilaro fought hard for."

Planning and Public Spaces Minister Rob Stokes said he had always been confident the government would find the balance needed after "important robust and passionate discussions".

“We have been working over many months to strike a balance between protecting the koala and the rights of our farmers and I’m pleased to say we have hit the mark," he said.

Provisions that will not change under the SEPP include harsh penalties for individuals or corporations who harm a threatened species, and compliance and enforcement for private native forestry.

Agriculture and Western NSW Minister Adam Marshall said discussions over the "precarious policy" were tough, but they had been resolved as a team effort. He will introduce legislation next week to give legal effect to cabinet's decision.

Senior MPs say the resulting agreement shows the Coalition crisis never should have happened, with one Nationals MP saying the result was "more about the absence of Barilaro".

"This is what happens when people of good will get together and solve things. I think the Liberals have made it very clear they are not going to work with him... unfortunately John overplayed his hand," the MP said.

Before the government announced an in-principle agreement over the SEPP last week, the National Party leadership sought endorsement of the deal in an emergency party room meeting over Zoom.

Multiple party members familiar with the meeting said it was telling that the Member for Clarence, Chris Gulaptis, was among the first to speak in support of the outcome. Mr Gulaptis was one of two MPs that first threatened to cross the floor over the policy last month.

The new agreement will apply only to rural landowners significantly changing the use of their land, such as for major residential development. Landholders will also be able to access ecologists or use their own to appeal against a council's koala management plan. On-the-ground surveys will also return in place of mapping.

Greens MP Cate Faehrmann, chair of the NSW Upper House Inquiry into Koalas, said the resulting definition of core koala habitat still constituted a "disappointing" backdown by the Liberal Party.

Many environmental groups remain concerned that protections for koalas in the new laws are too weak.