"This is a bittersweet outcome, but a critical step towards reversing the decline of koala populations" - WWF Australia.
The uplisting comes after a $50m commitment to koala welfare.
The Australian government is boosting the level of protection for koalas under national environment law.
After the catastrophic black summer bushfires, the impact of prolonged draught, and loss of habitat, the government is listing the koala as endangered on the east coast of the country.
The country's Minister for the Environment, Sussan Ley, said: We are taking unprecedented action to protect the koala, working with scientists, medical researchers, veterinarians, communities, states, local governments and Traditional Owners.
“As part of our $200 million bushfire response, I asked the Threatened Species Scientific Committee to consider the status of the Koala.
“Today I am increasing the protection for koalas in NSW, the ACT and Queensland listing them as endangered rather than their previous designation of vulnerable.
“The impact of prolonged drought, followed by the black summer bushfires, and the cumulative impacts of disease, urbanisation and habitat loss over the past twenty years have led to the advice.
“Together we can ensure a healthy future for the koala and this decision, along with the total $74 million we have committed to koalas since 2019 will play a key role in that process.
“The new listing highlights the challenges the species is facing and ensures that all assessments under the Act will be considered not only in terms of their local impacts, but with regard to the wider koala population.
“The National plan developed through scientific advice and public consultation will now go to the relevant states for their final adoption and will help guide state and local government strategies.”
Animal Welfare charity WWF Australia made a statement on its Facebook page: “This is a bittersweet outcome, but a critical step towards reversing the decline of koala populations.
“The Endangered status of the koala means they and their forest homes should be provided with greater protection under Australia’s national environmental law. Not only will this protect the iconic animal, but many other species living alongside them.
“The uplisting is the result of the federal Environment Minister acting on scientific advice from a joint submission from us, ifaw [International Fund for Animal Welfare] and Humane Society International Australia.
“The research revealed Queensland’s koala population has crashed by an estimated 50% since 2001 and up to 62% of the NSW koala population has been lost over the same period.
“Thank you to everyone who voiced their concern for koalas and signed the petition. We’re going to continue to work on the ground to #RegenerateAustralia and ensure the future of koalas.”