The number of sewage treatment plants with a compliance level above 90 per cent was at its highest over the past five years in 2021-21.
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Despite this, not one of them is 100 per cent compliant by Environment Protection Authority standards.
The EPA's latest annual report, released on Tuesday, showed 32 of the state's 80 wastewater treatment plants reached 90 per cent compliance, while 28 were between 70 to 90 per cent compliant.
One plant ranked below 50 per cent compliance.
The EPA issued 28 environment protection notices as part of industrial activities regulation in 2021-22 and undertook 25 compliance audits and 101 site inspections.
It was noted in the annual report, the quality of wastewater used to irrigate pastures at Huon Aquaculture's Parramatta Creek processing facility had improved.
Before the EPA took compliance action in 2018, wastewater salinity was about five times higher than the optimum concentration required for reuse and this resulted in groundwater contamination and impacted soil health.
The EPA received 1125 reports regarding pollution over the financial year, 503 of which were calls to the hotline.
The authority received 43 notifications of oil spills or the potential for oil spills into the marine environment.
Fourteen reports related to sunken or grounded vessels with potential to leak oil, but no oil discharge was detected.
Ten vessel-related incidents involved discharges of minor amounts of oil, three related to vessel fires, and one notification involved a vessel reported as abandoned with potential to leak oil.
The most significant event occurred when a bulk carrier, the MV Goliath, collided with two tugboats tied to the wharf in the Mersey River at Devonport in January.
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