Lady Elliot Island is part of a special group known as Commonwealth Islands — approximately 70 islands within the Great Barrier Reef Marine Park that are owned and managed by the Australian Government.

Most islands in the Reef fall under Queensland Government jurisdiction. However, Commonwealth Islands are federally owned and managed, primarily due to their historic maritime infrastructure, especially lighthouses.

The protection of these islands is managed at the federal level to safeguard their natural, cultural, and heritage values. This management is guided by national environmental laws, including the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

Lady Elliot Island is also listed on the Commonwealth Heritage List, recognising the significance of its historic lighthouse precinct and early settlement in Australia’s maritime history.

Any development or activity on the island is carefully assessed and must comply with federally approved management plans that prioritise conservation, cultural heritage, and education.