Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Direction 2019 (Cth)

Competition and Consumer (Price Inquiry—Water Markets in the Murray‑Darling Basin) Direction 2019

made under the Competition and Consumer Act 2010

Compilation No. 2

Compilation date:    8 September 2020

Includes amendments up to:            F2020L01143

About this compilation

This compilation

This is a compilation of the Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Direction 2019 that shows the text of the law as amended and in force on 8 September 2020 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register ( The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1—Preliminary  1

1  Name........................................................................................................................................ 1

3  Authority.................................................................................................................................. 1

4  Definitions................................................................................................................................ 1

Part 2—Price inquiry into water markets in the Murray‑Darling Basin                3

5  Commission to hold an inquiry into water markets in the Murray-Darling Basin.................... 3

6  Directions on matters to be taken into consideration in the inquiry........................................... 3

7  Directions as to holding of the inquiry..................................................................................... 4

8  Period for completing the inquiry............................................................................................. 4

Endnotes   5

Endnote 1—About the endnotes   5

Endnote 2—Abbreviation key   6

Endnote 3—Legislation history   7

Endnote 4—Amendment history   8

Part 1—Preliminary

1  Name

This instrument is the Competition and Consumer (Price Inquiry—Water Markets in the Murray‑Darling Basin) Direction 2019.

3  Authority

This instrument is made under the Competition and Consumer Act 2010.

4  Definitions

Note:       Expressions have the same meaning in this instrument as in the Competition and Consumer Act 2010 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.

In this instrument:

carryover arrangement has the meaning given by subsection 1.07(1) of the Basin Plan 2012.

exempt supply has the meaning given by subsection 95A(1) of the Act.

goods has the meaning given by subsection 95A(1) of the Act.

infrastructure service has the meaning given by subsections 12.47(5A) of the Basin Plan 2012.

inquiry has the meaning given by subsection 95A(1) of the Act.

intervalley transfer has the meaning given by subclause 3(1) of Schedule D to the Murray-Darling Basin Agreement.

Murray-Darling Basin has the meaning given by the Water Act 2007.

Murray-Darling Basin Agreement has the meaning given by Part 1A of the Water Act 2007.

Note:          The text of the Murray-Darling Basin Agreement is set out in Schedule 1 to the Water Act 2007.

services has the meaning given by subsection 95A(1) of the Act.

supply has the meaning given by subsection 95A(1) of the Act.

the Act means the Competition and Consumer Act 2010.

trade has the meaning given by subsection 1.07(2) and (3) of the Basin Plan 2012.

tradeable water rights has the meaning given by the Water Act 2007.

water market intermediary has the meaning given by subsection 1.07(1) of the Basin Plan 2012.

Part 2—Price inquiry into water markets in the Murray‑Darling Basin

5  Commission to hold an inquiry into water markets in the Murray-Darling Basin

(1) Under subsection 95H(1) of the Act, the Commission is required to hold an inquiry into markets for tradeable water rights relating to water in the Murray‑Darling Basin. The inquiry does not extend to any of the following:

(a)  seeking to identify the social and economic impact of water trading on communities in the Murray-Darling Basin;

(b)  considering the effectiveness of water buy-backs for environmental purposes;

(c)  the supply of a good or service that is an exempt supply.

Note:          The matters referred to in paragraphs (a) and (b) fall within the scope of other inquiries.

(2)  Under subsection 95J(1), the inquiry is to be held in relation to goods and services of the following description:

(a)  tradeable water rights; and

(b)  services facilitating the trade of tradeable water rights, including those offered by water market intermediaries; and

(c)  infrastructure services in relation to tradeable water rights.

(3)  Under subsection 95J(2), the inquiry is not to be held in relation to the supply of goods and services by a particular person or persons.

6  Directions on matters to be taken into consideration in the inquiry

Under subsection 95J(6) of the Act, the Commission is directed to take into consideration the following matters in holding the inquiry:

(a)  market trends since 2012, including demand for water, changes in the location where water is used, the quantity of water traded, water availability, changes in water users and their communities, development of new trading products, and the number of participants and sectors participating in the water markets;

(b)  the role of carryover arrangements, and the trading of water allocations which have been carried over, on water markets;

(c)  the role and practices of market participants, including water brokers, water exchanges, investment funds and significant traders of water allocations and entitlements;

(d)  the availability to the public of information on water market activities and tradeable water right holdings;

(e)  the timeliness, accuracy, and completeness of public information released on water market activities and tradeable water right holdings, including true trade price reporting and the types of trade (for example, immediate purchases, forward contracts, leases);

(f)  barriers to entry, expansion and exit, including transaction costs;

(g)  the management of constraints on the storage or delivery of water, including adjustments made to give effect to trades and intervalley transfers.

7  Directions as to holding of the inquiry

(1) Under subsection 95J(6) of the Act, the Commission is directed to do the following in holding the inquiry:

(a)  seek and consider the views of participants involved in water markets and other persons directly involved in water markets;

(b)  recommend options to enhance markets for tradeable water rights relating to water in the Murray‑Darling Basin, including options to enhance the markets’ operations, transparency, regulation, competitiveness and efficiency;

(c)  give to the Treasurer an interim report on the inquiry by 30 June 2020.

Example:    Participants involved in water markets, and other persons directly involved in water markets, include irrigation farmers, investors, water brokers, water exchanges, water registries and other service providers facilitating the trading of water, environmental water holders, urban water authorities, other infrastructure operators, and market advisors and analysts.

(2) Under subsection 95P(3) of the Act, the Commission is directed not to make available for public inspection, copies of any interim report until the Treasurer, in writing, authorises the Commission to do so.

8  Period for completing the inquiry

Under subsection 95K(1) of the Act, the inquiry is to be completed, and a report on the matter of inquiry given to the Treasurer, by 26 February 2021.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.

If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history. 

Endnote 2—Abbreviation key

o = order(s)
ad = added or inserted	Ord = Ordinance
am = amended	orig = original
amdt = amendment	par = paragraph(s)/subparagraph(s)
c = clause(s)	/sub‑subparagraph(s)
C[x] = Compilation No. x	pres = present
Ch = Chapter(s)	prev = previous
def = definition(s)	(prev…) = previously
Dict = Dictionary	Pt = Part(s)
disallowed = disallowed by Parliament	r = regulation(s)/rule(s)
Div = Division(s)
exp = expires/expired or ceases/ceased to have	reloc = relocated
effect	renum = renumbered
F = Federal Register of Legislation	rep = repealed
gaz = gazette	rs = repealed and substituted
LA = Legislation Act 2003	s = section(s)/subsection(s)
LIA = Legislative Instruments Act 2003	Sch = Schedule(s)
(md) = misdescribed amendment can be given	Sdiv = Subdivision(s)
effect	SLI = Select Legislative Instrument
(md not incorp) = misdescribed amendment	SR = Statutory Rules
cannot be given effect	Sub‑Ch = Sub‑Chapter(s)
mod = modified/modification	SubPt = Subpart(s)
No. = Number(s)	underlining = whole or part not
commenced or to be commenced

Endnote 3—Legislation history

Name	Registration	Commencement	Application, saving and transitional provisions
Competition and Consumer (Price Inquiry—Murray-Darling Basin) Direction 2019	8 August 2019 (F2019L01038)	9 August 2019	—
Competition and Consumer (Price Inquiries) Amendment Direction 2020	26 May 2020 (F2020L00612)	27 May 2020	—
Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Amendment Direction 2020	7 September 2020 (F2020L01143)	8 September 2020	—

Endnote 4—Amendment history

Provision affected	How affected
section 2	rep LA s 48D
section 7	am F2020L00612
section 8	am F2020L01143