The former head of Australia's Treasury, Dr Ken Henry, has called for sweeping environmental reforms.

Australia's natural environment is facing a critical juncture, and safeguarding it must take precedence in government policy and legislation, Dr Henry warns.

The former chief of federal Treasury is now the chair of the Australian Climate and Biodiversity Foundation, and asserts that governments have not adequately addressed the root causes of environmental degradation and the necessary policy changes.

Dr Henry's concerns come after his comprehensive review of the New South Wales Biodiversity Conservation Act revealed systemic flaws and the impending risk of mass extinction of half of the state's threatened species within the next century.

The independent review recommends 58 substantial changes to prioritise nature conservation, including the establishment of “no-go” zones where environmental damage would be deemed irreversible. 

Additionally, the state's biodiversity offset scheme, described as “compromised” by the report, faces substantial revisions.

Environmental Minister Penny Sharpe has pledged to consider the recommendations and fulfil the government's commitment to fixing the biodiversity offset system and halting rampant land-clearing.

But Dr Henry says a paradigm shift is needed, urging governments to elevate environmental considerations above competing interests such as forestry, mining, agriculture, and development by granting more resources and authority to environmental departments.

He says Australia must transition to a “nature positive” approach, focusing on environmental regeneration rather than merely halting further degradation. 

Dr Henry maintains that these changes are essential not only in New South Wales but also nationally, in alignment with a global framework endorsed by Federal Environment Minister Tanya Plibersek.

On the climate crisis, Dr Henry acknowledges that Australia's response has been slow, despite two decades of awareness. 

He believes the nation stands at a pivotal moment, highlighted by the election of climate-focused independents and the government's ambitions, albeit with less effective policy instruments.

Dr Henry has also expressed concerns about the intergenerational consequences of climate change and proposed revisiting the taxation of mining super profits to stimulate economic growth and alleviate the burden on future generations.

Ms Plibersek has vowed to overhaul environmental laws, with legislation expected next year, while scientists call for increased regulation and annual funding of $1.7 billion to protect nearly 2,000 endangered species.