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The Independent Panel reviewing the Water for Environment Special Account (WESA) has released its third and likely final report today.

The report focuses on the funding requirements of the WESA to implement the additional 450 GL of environmental water and constraints. It found, that there is a funding shortfall of $1.3 billion for the 450 GL program and that it is uncertain if the full target can be achieved.  It could not assess financial status of constraints beyond 2026 as no estimates of total costs are available and noted the remaining funds are sufficient for the expected expenses until 2026. No assessment on the Sustaining Basin Communities funding was undertaken as no outputs were measured, although they did highlight the need for more explicit guidelines on what is expected to be achieved. 

This week the Government's proposed Environment Protection and Biodiversity Act 2025 Reform Bills (six of) were referred to the Senate Environment and Communications Committee for review. The Minister for the Environment and Water, Murray Watt says the Australian Parliament must make a choice - support reform that will protect our treasured natural environment and drive productivity, or keep the broken, outdated laws we have which are failing business, the environment and our community.  However Senator  Sarah Hanson-Young said “The Albanese Government’s proposed environment bill will make things worse for nature and the climate. It will take environment protections backwards while fast tracking approvals for business.

Submissions are open now and close on 4 December 2025 with the Committee due to report March next year. 

IGWC released the 2023-2024 metering report card, providing an overview of how Basin States are progressing national metering standards. The report looks provides a snapshot of the progression towards AS4747 meters with NSW increasing their coverage of AS4747 meters, just behind Victoria which has the highest number. The report card does highlight the areas where NSW and QLD are still using estimates for water take, although these percentages are expected to decline with the roll-out of floodplain harvesting metering which has only just began. 

It is important to note that the report card refers to productive/commercial extraction of water, and therefore does not report on environmental water measurement. 

This update relates to persons or classes of people required to report water market information under the Australian Government water market regulation - this can be IIOs and water intermediaries.

DCCEEW are seeking feedback on the Exposure Drafts for the proposed Water Amendment (Water Markets Information) Regulations 2026 (Regulations) and the Water Market Data Standards.  These form the final pieces of the water market reform roadmap and are due for implementation in 2026.

Exposure drafts and a survey for feedback are provided on the webpage.

NIC has completed our own internal review into the Murray Darling Basin Plan, which is a series of papers addressing the key themes of the 2024 Early Insights paper using the recently published “Triple Crown of Water Reform Framework” to highlight possible next steps for the Basin Plan.  We hope to help forge a future pathway that embraces the paradigm shift needed for the Basin that is more about a 'plan of management' than the current ‘water recovery plan’ focus.  The review addresses; regulatory design, sustainable water limits, climate change, environment, agriculture and community and contemporary issues.   
We encourage stakeholders to reach out to discuss these papers, the evidence, our findings and recommendations. 

The 2025 Ricardo Water Markets Report was published this week. The report has really useful data on water markets, including on Cth water buybacks. Worth a look!

Some quick facts:

  • Estimated value of commercial allocation trade in major southern MDB trading zones: $235 million
  • Annual average southern MDB allocation prices: $115 per ML in NSW Murray (above Barmah) to $177 per ML in NSW Murrumbidgee
  • Estimated value of major southern MDB entitlement on issue (including environmental and Victorian water corporation holdings): $31.9 billion.
An interesting statement: "While the 605 GL SDLAM recovery is legislated under the Basin Plan, the recovery of the 450 GL additional environmental water is an in-principal agreement between Basin states and the Commonwealth. In its first term, the Albanese Government had pledged to recover the full 450 GL; however, there is no legislated requirement for this."

This week, Dairy Australia released the first of its kind report using new independent, evidence-based, modelling has found continued water buybacks under the Murray-Darling Basin Plan (MDBP) pose a severe, disproportionate, and avoidable risk to the entire dairy supply chain and the region communities they sustain.

The results are clear and alarming: water buybacks, as currently proposed, are not just a policy tool – they threaten the viability of an entire industry. Under two plausible buyback scenarios - the recovery of 302GL and 683GL - the analysis shows:
* reduced water availability
* significant increases in water prices
* sharp declines in farmgate milk production
* farm viability risks
* heightened risk of dairy processor closures, and
* community and supply chain impact.

“Holding Ground in Uncertainty: Insights for Australian Agriculture in 2050” is a deep and wide-ranging exploration of the futures that might await our sector—and the strategic choices we can make today to shape them.

This expanded edition includes 19 contributions from leading researchers and practitioners, exploring themes such as:

  • Landscapes, livelihoods and innovation: Future land use, water management, adaptation to climate extremes, and the role of innovation and agtech.
  • Diverse futures: Four scenario narratives — Regional Ag Capitals, Landscape Stewardship, Climate Survival, and System Decline — mapped out through the Ag2050 initiative.
  • Resilience through change: Case studies on livestock and aquaculture, AI in agriculture, and strategies for workforce renewal and circular economies.
New voices and perspectives: Reflections from industry leaders and thinkers on sustainability, decarbonisation, education, resource pressures, and how to foster long-term resilience

CISRO released their first-ever national stocktake of our $800 billion food system, which feeds around 100 million people – including 27 million Australians – with food produced by 100,000 farmers. The report maps a number of key challenges in the food system and seeks to calculate hidden costs.  The report identified three key steps to guide a systems-based approach for transformation:

  1. Recognising the food system as an integrated whole, moving beyond a fragmented, sector-based view
  2. Navigating responsibility across government, industry, and communities to ensure shared accountability for sustainability, nutrition, and equity goals
  3. Enabling interactions across disconnected parts of the system, from farming and nutrition to policy and innovation.

DCCEEW today released the Exposure Draft of the Water Markets Intermediaries Code (the Code) and an Overview of the draft are now available for consultation.  On this page you will be able to submit your feedback on the Exposure Draft. The consultation will be open until 11.59pm on Sunday 6 April 2025.  The Exposure Draft incorporates feedback from the Policy Position Paper consultation in November-December 2024.

DCCEEW have released their Final policy position paper on the Water Market Information, including pre-trade data adn obligations for registering trades.  This information sets the policy positions to be incorporated into the regulations in coming months, for implementation in a staged approach over 2026 and 2027.  For more information visit the Department webpage.  Click the link to see the document. 

Minister Plibersek tabled the Australia Audit Office's review of the 2023 Strategic Purchases for Bridging the Gap, which you may recall the Inspector General recently found flaws in governance and managing conflicts. 

The report identified steps were taken to address earlier deficiencies and that processes stacked up.  What was interesting to read in the detail were questions and recommendations about the purpose of these purchases towards the overall policy outcomes, which you will hear more from NIC about this area 

On Monday, Prime Minister Albanese announced the 2024 Annual Report on Closing the Gap and the 2025 workplan. 

We note, that for 2025 actions the priorities will be to develop a First Nations Water Strategy to inform Commonwealth actions under the proposed National Water Agreement. As well as, the Commonwealth continues to work with jurisdictions and a Coalition of Peaks to develop the inland waters target to measure progress towards securing First Nation peoples interest in inland water bodies. 

Under Objective 15 there are current targets for land and sea, but the inland target was not nationally agreed.

We hope to have a Member Policy update on this in the coming month.

The MDBA released the Constraints Roadmap today which outlines the new framework for cross-border delivery of the Basin Constraints program for another 10-years. The MDBA stating that “The Roadmap provides a guide for governments and communities in navigating the complex reforms required to relax constraints. The findings reflect the MDBA’s view on how to move forward. We hope that they are embraced by governments. Governments are the ultimate decision-makers on moving forward in relaxing constraints.” […]

The Inspector General this week released their 2022-2023 Murray Darling Basin Compliance Report.  The report states that "this compliance performance report provides a sample of common compliance activities metrics for each Basin State which will be incorporated into progressively broader reporting under a Basin-wide compliance performance reporting scheme. It is also anticipated that future reporting on compliance activities will be at the water resource plan level."  
The report provides an overview of the different approaches and outcomes to compliance in each of the Basin States. NSW reported licence holder numbers not metered percentage  (with a target of 95% underway), SA reported 98.2% of take was metered, Queensland report 74% of take was metered, in Victoria 98% was metered (and 76% telemetered), no details for ACT.  Victoria has the largest number of statutory officers, despite have the highest percentage of telemetered meters.  Victoria also had the highest number of investigations open and closed and warnings, whereas SA had the highest number and greatest value of fines.

DCCEEW recently released their progress assessment of the water market reforms.  This document outlines the steps taken to implement the ACCC recommendations and highlights the significant change still to navigate through water market reforms as required by the Restoring Our Rivers 2023 amendment. Unfortunately, the progress update provides no assessment of the costs and benefits of these reforms, rather forges ahead.  Current consultation include Water Market Decisions, Water Market Pre-Trade data and the final policy position for the Intermediaries Code via the Department’s website.

Following ongoing discussions with DCCEEW about accountability and transparency of progress on the Murray Darling Basin Plan, our attention was drawn to this new resource to track the progress.  Whilst it doesn't go all the way with providing the much-needed transparency, it does provide a visual examples of the progress, and remaining effort.  Its worth a look. 

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