In general terms, the Act will amend the Water Act 2007 (Cth) to impose a statutory limit of 1500 gigalitres on Commonwealth purchases of surface water across the Murray-Darling Basin.
The Act also amends the Murray-Darling Basin Plan 2012 (the Basin Plan) to provide increased flexibility in the recovery of 450 gigalitres of water through efficiency measures funded under the Water for the Environment Special Account.
Clause 12 in the Explanatory Memorandum states that the Act will address the concerns of rural and irrigation communities regarding the potential socio-economic impacts of Commonwealth environmental purchases by placing a limit on the amount of surface water that can be purchased by the Commonwealth in ‘bridging the gap’ to the sustainable diversion Limits set out in the Basin Plans. “Rural and Irrigation communities can include traditional owners or native title holders along the Murray basin.
For further information please see the Second Reading Speech and the Explanatory Memorandum.
Relevant provisions:
s 85B Simplified outline of this Division
There is a 1,500 gigalitre limit on water purchased under water purchase contracts.
s 85C 1,500 gigalitre limit on water purchases
(1) The Commonwealth must not enter into a water purchase contract at a particular time if doing so would result in the sum of:
(a) the long-term annual average quantity of water that can be accessed under the water access entitlement purchased under the contract; and
(b) the total of the long-term annual average quantities of water that can be accessed under water access entitlements purchased under water purchase contracts entered into before that time;
exceeding 1,500 gigalitres.
Note: For water purchase contract , see subsections (3) and (4).
(2) Subsection (1) ceases to have effect on the first occasion after the commencement of this section when a report is given to the Minister under subsection 50(5).
Note: Subsection 50(5) deals with a report of the results of a review of the Basin Plan.
Water purchase contract
(3) For the purposes of this section, a contract is a water purchase contract if:
(a) the contract is or was entered into by, or on behalf of, the Commonwealth for the purchase by the Commonwealth of a water access entitlement; and
(b) the water access entitlement relates to Basin water resources that are surface water;
and either:
(c) the contract was entered into during the period:
(i) beginning at the start of 2 February 2008; and
(ii) ending at the end of 23 November 2012; or
(d) the contract is or was entered into on or after 24 November 2012 for purposes directed towards achieving the Commonwealth's share of a reduction in the long-term average sustainable diversion limit for:
(i) the water resources of a water resource plan area; or
(ii) a particular part of those water resources.
Exceptions
(4) However, a contract is not a water purchase contract for the purposes of this section if:
(a) both of the following conditions are satisfied:
(i) the contract is or was entered into as the result of, or in connection with, an agreement under which the Commonwealth provided financial assistance for the rationalisation or reconfiguration of an irrigation network;
(ii) the contract was entered into after the commencement of this section; or
(b) both of the following conditions are satisfied:
(i) the contract is or was for the purchase of a water access entitlement from a Basin State;
(ii) the contract was entered into after the commencement of this section; or
(c) the contract was provided for in an agreement:
(i) under which the Commonwealth provided financial assistance for activities relating to water infrastructure; and
(ii) that is not mentioned in subparagraph (a)(i); or
(d) the contract is or was entered into in accordance with Part 6; or
(e) the cost of the water access entitlement purchased under the contract is or was debited from the Water for the Environment Special Account.
s 85D Validity of contracts
A contravention of section 85C does not affect the validity of a contract.