A federal government decision to seek $2 billion in damages from a US company to recover costs linked to "forever chemicals" used in firefighting foam has been welcomed by Senator Lidia Thorpe.

On Thursday, Attorney-General Michelle Rowland announced the government would launch the largest legal claim ever brought by the Commonwealth against US giant 3M, which is accused of engaging in a cover-up over the effects of per- and polyfluoroalkyl substances (PFAS) used in firefighting foam at 28 defence bases across Australia.

Ms Rowland said the company had withheld information and misrepresented the effects of the foam, telling reporters the "misconduct has contributed to substantial costs for Defence and the Australian taxpayer, including over $1 billion to date to investigate, remediate and mitigate PFAS contamination at Defence estate sites".

"Make no mistake — this legal action against 3M is significant," she said. "This is a government that is prepared to take on one of the biggest multinational corporations in the world for the betterment of Australian citizens."

The Senate Committee on PFAS I chaired has just released its final report.

The Albanese Government must act now to implement the recommendations, protect communities and clean up Country. For current and future generations we must act.

Media release:https://t.co/4c1R7g3B0G

— Senator Lidia Thorpe (@SenatorThorpe) November 19, 2025

Impact on Aboriginal communities

Known as 'forever chemicals', the several thousand synthetic compounds used in waterproof fabrics, food packaging, hygiene products and firefighting foam break down slowly and remain in the environment for decades.

A Senate Select Committee on PFAS — led by Senator Thorpe — released its final report last year, calling for a full ban on PFAS in firefighting foam.

Responding to the Commonwealth's announcement on Thursday, the Victorian Senator said it was a "huge win" for everyone involved in the Senate inquiry.

"While today's announcement is a good step, we need sustained action to tackle PFAS and its impacts," she said.

The committee heard members of an Aboriginal community in New South Wales were experiencing a "cancer cluster" linked to PFAS contamination caused by the Department of Defence.

Civil action taken by the Wreck Bay Aboriginal Community Council resulted in the Commonwealth agreeing to pay $22 million after toxic firefighting foam from nearby defence facilities contaminated sacred waterways.

PFAS-based foams have been used at HMAS Creswell and the Jervis Bay Range Facility since the 1970s. The committee heard testimony that defence workers had unknowingly sprayed the foam to entertain children and, on another occasion, used it to farewell a colleague.

Then-Wreck Bay Aboriginal Community Council chairperson Annette Brown told the hearing both the government and chemical manufacturer 3M continued to "evade" responsibility for the contamination.

"They've all remained silent," she said. "I think the lid's got to get lifted off their silence."

Senator Thorpe thanked the "First Peoples of Wreck Bay, who put this critical issue on the national agenda. My heart goes out to you and I hope that today you can finally feel that you are being heard".

"Hearing from the Wreck Bay community about the devastation that PFAS has caused for them prompted me to push for this inquiry, which will ultimately benefit everyone in this country," she said.

"I also want to thank our firefighters, who I have been working closely with, and who have spent years raising awareness about PFAS. I am pleased that another outcome of the inquiry is progress toward expanded presumptive cancer coverage for firefighters."

In response to the government's announcement, a 3M spokesperson said the company had never manufactured PFAS in Australia and "ceased sales of the products at issue in Australia around two decades ago".

"Despite this, the Department of Defence continued to use PFAS-containing fire-fighting foams for nearly two decades longer, as noted in a recent legislative committee report," they said.

"We will defend ourselves against these claims through the legal process."

Can't be about fixing the budget

The government will not pursue 3M over "personal injury or health claims," instead only focusing on the economic, environmental and cultural effects of the PFAS contamination.

"[The case] is solely focused on the environmental, economic and cultural impacts and the costs that we've incurred in dealing with those impacts," Assistant Defence Minister Peter Khalil said.

In response, Senator Thorpe said: "That is deeply concerning and frustrating for people whose health has been seriously affected by PFAS exposure, and for families who have lost loved ones."

She also urged the government not to use the lawsuit as a "cost recovery exercise to bolster the budget". Instead, she called on any funds recovered from 3M to be directed to the "highest areas of need as a priority".

"In cases like the Wreck Bay class action, the government acknowledged cultural loss, but did not properly acknowledge or take responsibility for the serious health impacts caused by PFAS contamination," she said.

"The government must finally come clean about the health risks posed by these toxic chemicals, update its public health advice, and provide proper health supports for affected communities."

A key recommendation of the Senate inquiry urged the Commonwealth to fund subsidised PFAS blood testing, expand cancer and health screening, and provide targeted mental health support for people most heavily exposed to PFAS.

Senator Thorpe said Thursday's announcement was a "significant step, but we cannot stop here".

"PFAS chemicals continue to harm our health and environment, and we need to stop this at the source by banning PFAS-containing products except where genuinely essential," she said.

"The Environment Minister can take immediate action by using his discretion to include all PFAS chemicals in Schedule 7 of the Industrial Chemicals Environmental Management Standard register."