Between 26 August and 29 August 2024, 5 information sessions were held in the following locations:
Queensland Condamine-Balonne catchment
- Toowoomba
- Surat
- St George
- Dirranbandi
NSW Border Rivers catchment
- Goondiwindi
These information sessions covered strategic water purchasing to bridge the gap in the northern basin.
Several common questions were raised in the information sessions. They are addressed below. This information is published for transparency.
What we heard
About this water purchase activity
The strategic water purchasing to bridge the gap (August 2024) is part of the Government’s commitment to deliver the Murray–Darling Basin Plan. It sets the amount of water that can be taken from Basin rivers for industry and agriculture, while leaving enough for our rivers, lakes and wetlands and the plants and animals that depend on them.
A Trading Strategy Addendum for bridging the gap was released in June 2024. This identified the expected remaining gap (volume) to be bridged in the northern Basin catchments following the 2023 open tender process. These expected volumes are:
- 8.48 GL/y in the Qld Condamine-Balonne, and
- 5.09 GL/y in the NSW Border Rivers
The current open tender for the above two catchments is to bridge the gap to the Sustainable Diversion Limits in these catchments. The department is seeking to purchase permanent surface water rights, not seasonal water allocations. Groundwater water rights are not eligible in this open tender.
Water market pricing
The department published a Water Entitlement Market Prices across the Murray-Darling Basin Market Overview Report as of 22nd July 2024 . We have published a summary of the volumes that were agreed to be purchased under the bridging the gap program from the recent tender round as at April 2024. Other water market pricing information can be obtained from state water registries or from water brokers and can be used to help in your determination of an offer price ($/ML).
Those considering a tender application should seek expert advice to help determine the offer price to the Commonwealth. All responses will be assessed for eligibility and for value for money.
Other water efficiency measures that would be considered
Besides this open tender, there may be funds for on-farm and off-farm water efficiency projects. Considerations of such projects are:
- the type of project proposed
- the projected water efficiency (water savings)
- project cost
- timeframe for delivery of the project.
If there are water efficiency projects that you have identified, these should be discussed with your state government water representative in the first instance.
Why can’t temporary water recovery measures such as event-based mechanisms contribute towards SDL targets?
The bridging the gap program is about reaching the Sustainable Diversion Limit (SDL) target set for each catchment. This is achieved by the Commonwealth purchasing permanent water entitlements in the catchment. This water is then transferred to the Commonwealth Environmental Water Holder (CEWH). Event-based mechanisms and the purchase of temporary water are valuable additional initiatives that can be used by the CEWH. These supplement environmental watering actions and improve environmental outcomes for specific water actions when the conditions allow.
Can I change my offer price and how long is my offer valid for?
Once a tender is submitted the offer price ($/ML) cannot be changed, unless the submitted tender is withdrawn and re-submitted with a revised offer price. This is only allowed during the tender submission period of 18 September to 13 November 2024.
Details on the terms and conditions associated with submitting an offer can be found in the tender documentation. This documentation is now available on AusTender. All tender documentation should be reviewed as part of your consideration to participate in the tender. Specialist advice should also be considered as part of this process.
Capital Gains Tax
The department is not able to comment on whether capital gains tax is payable by an individual or entity on the sale of water. Seek specialist financial or tax advice on your offer. It should factor into your decision to participate in any water sale.
Can I sell a portion of my entitlement?
Yes. As part of the information required in your tender submission you will be required to specify what volume you wish to offer for sale and at what offer price ($/ML). The volume offered can be all or a portion of the total volume on the water right. However, the volume offered must be equal to or greater than the minimum offer volume (ML) set for this tender. The minimum offer volume will be published in the tender documentation.
Offers of overland flows water
Only overland flow licences in the Lower Balonne area are in scope for this tender. Before submitting an offer to the Commonwealth, you will need to provide details in terms of the decommissioning works required for your property relating to your overland flow licence. The Queensland Department of Regional Development, Manufacturing and Water should be consulted regarding your licence and the required decommissioning works. Further details on these requirements will be published in the tender documentation.