The federal government has struck an 11th-hour deal for major and “balanced” environmental reforms.

Prime Minister Anthony Albanese announced the changes had secured the support needed in the Senate, with the laws to pass the parliament within hours.

“This is a landmark day for the environment in this country,” he said in Canberra on Thursday.

“It is also a good day for business in this country by providing more certainty reducing delays and making sure that we get better outcomes and improve productivity.”

Albanese said the laws were balanced and would reduce approval times for projects.

Under the changes, a federal Environment Protection Authority will be set up.

The government will establish a $300 million forestry growth fund to support jobs as an exemption is removed for high risk land clearing to ensure they comply with the same rules and standards as other industries.

Thursday is the last day parliament is sitting for the year.

The bill aims to ensure better protections for the environment while tackling a backlog of critical infrastructure, energy and housing projects by streamlining approvals processes.

Amendments for the Greens were aimed at removing fossil fuel projects from fast-track approvals pathways and ensuring they could not be subject to a new “national interest” exemption from environment laws.

-AAP