Setting the Stage: Introduction to the Water Amendment (Restoring Our Rivers) Bill 2023
On 6 September 2023, Australia’s Minister for Environment and Water, the Hon. Tanya Plibersek MP, introduced the Water Amendment (Restoring Our Rivers) Bill 2023 (Cth) (Bill) to Parliament. This transformative Bill seeks to redefine Australia's water management policy. It follows an extensive agreement on 22 August 2023 (August 2023 Agreement), that included the Commonwealth, New South Wales, Queensland, South Australia, and the Australian Capital Territory.
Victoria’s government has not yet joined the August 2023 Agreement, although the Minister is hopeful that ongoing discussions will result in the government’s participation. Given that Victoria controls a significant share of the Murray-Darling Basin’s water resources, its absence could impact the Bill's success. Similarly, New South Wales, while a party to the agreement, remains opposed to certain aspects, such as water buybacks.
As the Murray-Darling Basin is a crucial hub for Australia's ecology, agriculture, and community life, the Bill aims to address its long-standing challenges.
Preliminary Consultations and MDBA's Advisory Role
Prior to the Bill's introduction, the Minister actively engaged with the Murray-Darling Basin Authority (MDBA) to evaluate the potential for meeting water recovery targets set for June 2024. MDBA’s advice, which was publicised on 25 July, pointed out that under the current legislative framework, meeting these goals would likely prove difficult, necessitating an extended timeline.
As of 30 June 2023, only a fraction of the targeted additional 450 gigalitres (GL) of environmental water had been achieved. The Bridging the Gap Target, a scheme designed to bring water consumption to environmentally sustainable levels at the basin scale, has achieved 98% recovery for surface water and 92% for groundwater.
Bill Highlights: Key Amendments to the Water Act and Basin Plan
The Bill takes a multi-pronged approach. It seeks to amend the Water Act 2007 (Cth) and the Basin Plan, with a strong focus on implementing these changes comprehensively. It includes plans to enhance transparency and build public trust in the water markets while emphasising the importance of achieving the additional 450 GL environmental water target.
Paving New Pathways: Flexible Methods for Achieving Environmental Targets
The Bill aims to diversify the avenues through which environmental water targets can be met. It proposes expanding the scope of projects that contribute to the 450 GL target. Revised methods may include land and water packages, water buybacks, and other innovative projects, offering more flexibility and options to stakeholders involved.
To track progress, two significant deadlines have been established:
- Delivery of water infrastructure projects by 31 December 2026.
- Recovery of 450 GL of water for the environment by 31 December 2027.
Importantly, the current accounting methodology will remain consistent for these new initiatives. The socio-economic tests usually applied will be set aside, as the Australian Government commits to investing in affected Basin communities to support both environmental and socio-economic outcomes.
Regulatory Changes: Streamlining the Act for Efficacy
The Bill is not just focused on sustainability but also on efficacy and transparency. It proposes to lift the current 1,500 GL cap on water purchases by the Commonwealth, enabling more flexible use of the $1.3 billion Water for the Environment Special Account (WESA). This aims to allocate resources more effectively to projects that are crucial for the Basin's environmental well-being.
Reinforcing Compliance and Accountability Mechanisms
In light of the ever-increasing challenges of water management, the Bill introduces a robust compliance framework. It assigns new roles and responsibilities to the Inspector-General of Water Compliance, aiming to create a transparent and accountable mechanism to monitor Basin States' compliance with Sustainable Diversion Limits (SDLs).
Focused Approach: Deferral of Water Act Review
To ensure that the focus remains solely on achieving the Basin Plan’s goals, the Bill proposes a delay in the Water Act review from 2024 to 2027. This aligns it better with the Basin Plan review scheduled for completion in 2026.
Modernising the Water Markets: Regulatory and Operational Changes
The Water Act will undergo comprehensive changes to enhance the transparency and integrity of water markets in the Murray-Darling Basin. The Inspector-General of Water Compliance will have enhanced roles that include acquiring new compliance and enforcement powers, specifically designed to ensure adherence to the SDLs in the Basin States. This will be complemented by improved information-sharing mechanisms with other key regulatory bodies, like the ACCC and the Bureau of Meteorology, thereby streamlining oversight and bolstering the overall integrity of Australia's water markets.
Industry and Political Reactions to the Bill
The proposed Water Bill is polarizing. The agriculture sector is split; some see promise in better water infrastructure, while others worry about losing water entitlements and higher costs. The National Farmers' Federation opposes water buybacks, calling for a balanced approach, while Environment Victoria supports the Bill for its potential in environmental restoration.
Politically, States mostly back the August 2023 Agreement, but Victoria's opposition could be a hurdle. Parties are also divided; the Australian Labor Party demands urgent action to restore the River Murray, while the Coalition argues the Bill will harm businesses and overlooks community needs. This reflects the ongoing tension between environmental and economic goals.
Next Steps: A Watershed Moment for Australian Water Management
Supported by preliminary consultations with the MDBA and an extensive August 2023 Agreement involving multiple States, the Bill takes a multi-faceted approach to address crucial issues ranging from water recovery targets to market transparency.
On 7 September 2023, the Bill was referred to the Senate Environment and Communications Legislation Committee for a report by 8 November 2023. The closing date for submissions is 29 September 2023.
The Department of Climate Change, Energy, the Environment and Water will be holding information sessions over the coming weeks. They are also continuing to engage with stakeholders on implementing the Basin Plan.
