Explanatory Statement

Issued by the authority of the Minister for the Environment and Water

Water Act 2007

Water Amendment (Water Markets Information) Regulations 2026

Legislative Authority

Subsection 256(1) of the Water Act 2007 (the Water Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Water Act to be prescribed, or necessary or convenient to be prescribed, for carrying out or giving effect to the Act.  

Part 4 of Schedule 3 of the Water Amendment (Restoring Our Rivers) Act 2023 (Restoring our Rivers Act) inserted a new Part 7A into the Water Act, with effect from 1 July 2024. Part 7A deals with water markets information, a subset of water information that is relevant to Murray–Darling Basin water markets. Section 135H creates obligations to collect, generate and record data and section 135F requires that a comprehensive set of trade, pre-trade, and transfer data be given to the Bureau of Meteorology (the Bureau), in accordance with new Water Markets Data Standards (WMDS).

Part 7A of the Water Act allows regulations to prescribe who must give a copy of specified water markets information to the Bureau. The regulations may also prescribe those persons who must collect, generate or record water markets information, the kind of information that must be collected, generated, or recorded and given, when a copy of that information must be given, and the form and manner in which it must be given. 

Purpose

The purpose of the Water Amendment (Water Markets Information) Regulations 2026 (the Amendment Regulations) is to amend the Water Regulations 2008 to specify:

• The classes of person who must give water markets information to the Bureau in accordance with subsection 135F(1) of the Water Act;
• The kind of water markets information persons within each class must give in accordance with subsection 135F(1) of the Water Act;
• The time within which the information must be given in accordance with subsection 135F(2) of the Water Act;
• The form or manner in which the information must be given in accordance with paragraph 135F(3)(a) of the Water Act;
• The classes of persons who must collect, generate or record water markets information in accordance with subsection 135H(1) of the Water Act; and
• The kinds of water markets information each person in a class must collect, generate, or record in accordance with subsection 135H(1) of the Water Act.

The broader purpose of the Amendment Regulations is to increase confidence in Murray–Darling Basin water markets by:

• Improving market transparency through more timely public access to more accurate and comprehensive de-identified information about trade or transfer in eligible tradeable water rights, with powers for the Inspector-General of Water Compliance (the IGWC) to monitor and enforce contraventions of the water markets information framework; and
• Enhancing market integrity by giving the Australian Competition and Consumer Commission (the ACCC) and the IGWC access to water markets information to support their monitoring and enforcement functions and powers under the Water Act.

Background

The Water Act makes provision for the management of the water resources of the Murray–Darling Basin, and for other matters of national interest in relation to water and water information, and for related purposes.

Since the introduction of the Water Act in 2007, the Bureau has been responsible for collecting, holding, managing, interpreting and disseminating Australia’s water information. This role came about in response to significant threats to water security during the Millenium Drought in the early 2000s, which highlighted the need for, and the lack of, a comprehensive national water information source to inform critical decision making.

Over the following years, the Bureau developed national water information standards and systems to collect Australia's water data from over 200 different organisations, and products and services to make available water data, information, forecasts and insights.[1]

Importantly, this includes information about water rights, allocations and trades. The Bureau currently collects, holds, manages, interprets and disseminates water information under Part 7 of the Water Act. This includes collecting a limited set of water market data from a limited range of stakeholders including information about water access rights and trades or leases of water access entitlements and irrigation rights. This data provides insight into the past, present, and future conditions of Australia’s water resources.

Prior to the 1980s, water access rights in the Basin were largely tied to land ownership, but reforms in the 1980s and 1990s that separated water from land laid the foundations for water trading. Water trading activities has continued to grow since this time. Water trade provides holders of water rights with the ability to decide whether to buy, sell or make other arrangements with their water at a particular point in time in response to fluctuations in irrigator needs, water availability, commodity prices and local conditions.[2] The Murray–Darling Basin water markets consist of multiple interrelated and separate markets, each defined by water system boundaries and possessing distinct characteristics. These markets range from smaller, generally unconnected markets in the northern Basin, to the large, interconnected market in the southern Basin.

In October 2022, the Australian Government announced its commitment to implementing the Water market reform: final roadmap report (the Roadmap) to restore transparency, integrity and confidence in Murray–Darling Basin water markets.[3] This formed the Australian Government’s response to the ACCC’s 2021 Murray–Darling Basin water markets inquiry – final report (ACCC final report).[4]

The Roadmap identified that transparency is an important policy and market principle. Market participants and the regulator need accurate and timely data and information. The ability to make good decisions and confidence in the market depend on transparent and reliable information. The ACCC final report found that existing digital infrastructure did not provide the data and information needed by market participants or regulators to make informed decisions about whether to trade, make policy decisions, or take enforcement action.

The Roadmap made 23 recommendations encompassing integrity and transparency, data and systems, market architecture and governance reforms.

The Roadmap data and systems reform recommendation (Roadmap Recommendation 10) was based on two objectives:[5]

• To enhance the transparency and availability of market data to improve knowledge and understanding of the market, prices, volumes and other relevant developments; and
• To enable the regulator to identify and enforce compliance with market conduct rules.

The Roadmap’s transparency recommendations aim to enhance communication and education to bridge the gap between perceptions of what is occurring in the Basin that influences water markets, and what is actually happening. The transparency reforms recommended expanding on and completing work already underway to make information about the management of water more meaningful and accessible; improve the effectiveness of stakeholder participation in water markets; increase trust and confidence in water markets; and encourage new entrants into the market.

The Roadmap’s data recommendations include developing a new data and systems framework through new water market data standards requiring data providers to collect and store specified trade and pre-trade data. The Roadmap also recommended implementing data sharing agreements between the Bureau and data providers; introducing a system that regulators and intermediaries can interact with to automate sharing of data with the Bureau (as the national water information agency), and creating a National Water Data Hub which will provide:

• all water trade and pre-trade data to regulators; and
• de-identified data and data services for third parties.

The recommendations to broaden and strengthen price reporting requirements for trade data (Roadmap Recommendation 4) and price reporting requirements for pre-trade data (Roadmap Recommendation 5) rely upon significant data and systems reform.

The Restoring our Rivers Act amended the Water Act to, among other things, include Part 7A.

Part 7A expands on the existing Part 7 of the Water Act by recognising the importance of water markets information in the Murray–Darling Basin. It includes functions and powers for the Bureau to collect, hold, manage, interpret and disseminate water markets information.

The Amendment Regulations prescribe matters that support the operation of the new requirements in Part 7A. The Amendment Regulations prescribe, for the purposes of sections 135F and 135H:

• who must collect, generate or record, and give, copies of specified water markets information to the Bureau;
• what water markets information must be collected, generated, or recorded, and given to the Bureau;
• when the water markets information must be given to the Bureau; and
• the form and manner for giving that information to the Bureau.

Interaction with the WMDS

Sections 135F and 135H of the Water Act include additional requirements that water markets information collected, generated or recorded and given to the Bureau must comply with any applicable WMDS.

The Director of Meteorology may issue WMDS relating to water markets information by legislative instrument (see section 135J of the Water Act). The WMDS may deal with any or all of the following:

• the details for collecting, generating, recording or providing water markets information as required by Division 4 of Part 7;
• the details of the persons or bodies that will be required to collect, generate, record or provide water markets information as required by Division 4 of Part 7; and
• any other matter relating to water markets information that is specified in the Water Regulations.

Flow of information

Under sections 135M and 135N of the Water Act, trade forms must be provided by irrigators to the relevant water market authority. The Amendment Regulations specify what information on those trade forms must then be provided by the water market authority to the Bureau. It is expected that the majority of water markets information will be collected from these trade forms, but not all of the information on the trade forms will necessarily be required to be provided to the Bureau. Some information on trade forms may be solely relevant to the functions and processes of the water market authority.

Similarly, water markets information posted on a trading platform about buy and sell offers for water allocation, will be provided by the trading platform operator to the Bureau. Again, not all water market information posted on the trading platform will necessarily be required to be provided to the Bureau. Some information may be solely relevant to the functions and processes of the trading platform operator. 

Section 135V seeks to avoid regulatory duplication between Part 7 and Part 7A, by providing that if, apart from section 135V, a person would be required to give the same information under both Parts 7 and 7A, and they have given information under Part 7A, they are not required to give the information under Part 7. Similarly, section 101Q of the Water Act provides that if, apart from section 101Q, a person would be required to give the same information under both Parts 5A and 7 of the Water Act to the Bureau, and they have given information under Part 5A, they are not required to give the information under Part 7.

Sections 101Q and 135V are intended to avoid the duplication of information required to be given by persons to the Bureau and to assist industry in understanding what its obligations are. Nonetheless, it is likely these persons will use the same systems to collect and store information, regardless of whether it is for Part 5A, Part 7 or Part 7A. Utilising the same requirements, form and manner for information to be given to the Bureau will avoid confusion and reduce regulatory burden for those providing that information.

De-identified water markets information records will be published by the Bureau on its water markets webpost. This addresses the first of the two objectives of the Roadmap’s data and system recommendations outlined above - to enhance the transparency and availability of market data to improve knowledge and understanding of the market, prices, volumes and other relevant developments.

Water markets information records containing personal information will be encrypted and only accessible by the enforcement agencies (see Privacy below). These are the IGWC as the agency responsible for monitoring, oversight and enforcing compliance with relevant obligations, and the ACCC as the agency responsible for monitoring and enforcing insider trading and market misconduct provisions under Part 5A of the Water Act. This addresses the second of the two objectives of the Roadmap’s data and systems recommendations outlined above – to enable the regulator to identify and enforce compliance with market conduct rules.

Ultimately, this will benefit participants in water markets by increasing trust and confidence in water markets.

Regulatory Impact Analysis

The cost-benefit analysis undertaken by Frontier Economics in 2022 found that the Roadmap recommendations will deliver a net benefit to Murray–Darling Basin water users, Basin communities, governments and other interested stakeholders. The Roadmap was certified as meeting the requirements of a Regulation Impact Statement (now ‘Impact Analysis’) and, in the interests of conserving taxpayer resources and time, a separate Impact Analysis was not undertaken. This certification (OBPR22-01397) can be viewed at: Certification of Independent Review - Water Market Roadmap | The Office of Impact Analysis.

The Department of Climate Change, Energy, the Environment and Water (the department) consulted with the Office of Impact Analysis (OIA) on making the Amendment Regulations to assess whether they are still within the scope of the original process. The OIA has confirmed that the regulations supporting the new Part 7A of the Water Act deliver the relevant Roadmap’s transparency and integrity objectives while balancing industry burden. An addendum will be published with the original certification on the OIA’s website when the Amendment Regulations are made.

The Amendment Regulations differ from the Roadmap recommendations in the following ways:

• Scope: the Part 7A reforms are narrower than the Roadmap (i.e. fewer water right types are captured and some intermediaries are excluded); and
• Timing: the Part 7A reforms enable more flexible reporting (i.e. next business day or one hour) than the real-time reporting recommended by the Roadmap.

Consultation

The department undertook extensive consultation with key stakeholders on the development of the Amendment Regulations throughout 2024, 2025 and 2026. Key stakeholders include the Basin state authorities (New South Wales, Queensland, Victoria, South Australia and the Australian Capital Territory); public and private irrigation infrastructure operators (IIOs) and infrastructure operators; water market intermediaries and trading platform operators; Commonwealth agencies; the Bureau as data custodian; the ACCC as the market conduct enforcement agency and the IGWC as the regulator for Part 7A water markets information obligations.

In the course of developing the Amendment Regulations, feedback was sought on four policy papers and exposure drafts of both the regulations and the WMDS. Further, six public information sessions were held, thirty-four meetings were held with Basin state water market authorities, and twenty-one meetings were conducted with industry, including trading platform operators and non-Basin state water market authorities.

A ‘What We Heard Report’[6] on feedback received through exposure draft consultation was published on the department’s website in May 2026. Its main purpose is to summarise feedback received on the Exposure Draft of the Regulations and what has changed between the Amendment Regulations and the Exposure Draft as a result. However, the report also includes a summary of how feedback from consultation has been used to inform development of the Amendment Regulations. 

The Bureau also engaged extensively with data providers (entities expected to have obligations under the Amendment Regulations) throughout 2024, 2025 and 2026 on the details of the proposed WMDS and system requirements for the Water Data Hub. In addition, the Bureau has been developing implementation guidance with data providers to give as much detail on requirements as possible and allow maximum lead-time for organisations to prepare for any necessary business and system changes.

The Bureau’s stakeholder engagement raised concerns by stakeholders about provision of personal information. Further information is provided under ‘Privacy’ addressing how personal identifiable information will be protected.  The Bureau will continue to engage directly with stakeholders to address these concerns and will develop guidance material to further support understanding of how water markets information provided through the Water Data Hub will be treated.

Incorporation by Reference

Paragraph 135F(3)(a) of the Water Act provides that the copy of water markets information given to the Bureau must be given in the form or manner specified in the regulations.

Paragraph 7A.08(1)(b) and subregulation 7A.08(3) of the Amendment Regulations require the water markets information to be given in accordance with any additional requirements, and in the form, and lodged in a manner, specified in the WMDS. On the basis that the proposed WMDS are made, they would be incorporated into the Amendment Regulations.

Paragraph 256(3)(b) of the Water Act provides that regulations made for the purposes of Part 7A may incorporate material ‘as in force or existing from time to time’. The term ‘as in force from time to time’ ensures that any updates to the WMDS will be applicable and is consistent with the approach taken in the Water Amendment (Water Markets Decisions) Regulations 2026 (Water Markets Decisions Regulations).

The requirements, form and manner for giving material to the Bureau may change over time, particularly in response to stakeholder feedback and/or technological advances. Incorporating the requirements, manner and form of the WMDS will ensure there is consistency in giving information to the Bureau. This will simplify reporting for those persons who report under both Part 5A and Part 7A of the Water Act, as the Water Markets Decisions Regulations also incorporate by reference aspects of the WMDS.

Privacy

Privacy obligations for Water Market Authorities and Trading Platform Operators
 

The Amendment Regulations impose requirements on entities that are water market authorities and trading platform operators to collect, generate or record and give water markets information to the Bureau.

These requirements may require the collection and giving of personal information, for example:

• prescribed information under the definition of water markets information (see regulation 1.05C) may include personal information within the meaning of the Privacy Act 1988 (the Privacy Act), such as where an individual is a sole trader and their name is linked to their ABN or ACN;
• items 1 and 2 of the table in subregulation 7A.07(1) require water market authorities to give Category 1 water markets information to the Bureau. This includes ‘information that identifies such water rights and owners’ (see paragraph 7A.04(a));
• items 3, 5 and 7 of the table in subregulation 7A.07(1) require Basin state water market authorities, water market authorities, or IIO water market authorities (respectively) to give Category 2 water markets information to the Bureau. This includes ‘information that identifies the permanent eligible tradeable water rights or temporary eligible tradeable water rights that are the subject of such trades or transfers and the entities involved in them’ (see paragraph 7A.05(a)) and ‘identifiers assigned by water market authorities … that identify a trade or transfer as distinct from other trades or transfers’ (see paragraph 7A.05(i) – the identifier may be based on the relevant entity);
• items 8 and 9 of the table in subregulation 7A.07(1) require trading platform operators to give Category 3 water markets information to the Bureau. This includes ‘information that identifies such buy or sell offers and the entities involved in them’ (see paragraph 7A.06(a);
• subregulation 7A.09(1) specifies the same classes of persons specified in the table in subregulation 7A.07(1) as being required to ‘collect, generate or record’ the same kinds of water markets information specified in the table in subregulation 7A.07(1).

Subsection 135F(8) of the Water Act provides that the water markets information referred to in subsection 135F(1) includes, but is not limited to, personal information within the meaning of the Privacy Act.

Any personal information collected by a water market authority or trading platform operator would be subject to the privacy obligations applying in the relevant jurisdiction. Where the water market authority or trading platform operator was covered by the Commonwealth Privacy Act, the obligations under Australian Privacy Principle 5 would apply.

The disclosure of that water markets information by the water market authority or trading platform operator to the Bureau is required or authorised by law in accordance with Australian Privacy Principle 6.2(b). The disclosure of this information is reasonable, necessary and proportionate to achieving the broader purpose of the Amendment Regulations to increase confidence in Murray–Darling Basin water markets and enhance water market integrity. The relevant privacy safeguards for this information are outlined below in respect of the relevant Commonwealth agency.

The subsequent disclosure by the Bureau of that information to the ACCC and IGWC would be authorised by 135P(2) of the Water Act and, with respect to the IGWC only, section 215UC. Subsection 215UB(2A) would also authorise the IGWC to disclose information to the Bureau and the ACCC. Again, these disclosures are required or authorised by law in accordance with Australian Privacy Principle 6(b) and disclosure of this information would be necessary to increase confidence in the Murray–Darling Basin water markets and enhance water market integrity more generally.

Privacy obligations for the Bureau

Collection

The Bureau is authorised by section 135C of the Water Act to collect water markets information, including water markets information containing personal information.

Securing

Information or documents given to the Bureau by water markets authorities or trading platform operators containing personal information is governed by the Privacy Act and the Australian Privacy Principles (at Schedule 1 of the Privacy Act). Australian Privacy Principle 11 requires the Bureau to take reasonable steps to secure any personal information from misuse, interference, loss and unauthorised access, modification or disclosure.

Updating

Australian Privacy Principle 13 requires entities to take reasonable steps to correct personal information to ensure it is accurate, up-to-date, complete, relevant and not misleading. The Amendment Regulations make such provisions. For example, items 1, 2, 3, 4, 5 and 7 in the table in subregulation 7A.07(1) require water market authorities and trading platform operators to give the Bureau water markets information where it is ‘updated’. The extended meaning of updating includes correcting the information (see paragraph 7A.07(3)(b)). This ensures that the water markets information held by the Bureau, including where it is personal information, will remain accurate, up-to-date, complete, relevant and not misleading.

Disclosure/publication

Paragraph 135D(2)(b) of the Water Act prohibits the Director of Meteorology from publishing information about water markets information to the extent that the information identifies a particular individual by means of the individual’s name, address, customer number or account number or other identifier (including an email address) unless the information is already published or is otherwise publicly available.

The Bureau may disclose information to the IGWC and ACCC under subsection 135P(2) of the Water Act. Section 135W provides that Part 7A (including subsection 135P(2)) has effect despite any law of the Commonwealth, a State or a territory prohibiting disclosure of the information. 

As an agency of the Commonwealth, the Bureau may also disclose information to the IGWC for the purposes of facilitating the performance of the IGWC’s functions or the exercise of the IGWC’s powers (see section 215UC of the Water Act).

Privacy obligations for the IGWC

Information or documents disclosed by the Bureau to the IGWC under subsection 135P(2) or section 215UC of the Water Act may contain personal information. The Privacy Act and the Australian Privacy Principles apply to any personal information provided by the Bureau to the IGWC. The requirements to secure and update personal information are therefore the same for the IGWC and the Bureau.

Disclosure/publication

Subsection 215UB(2A) of the Water Act provides that the IGWC may disclose the information to the Bureau and the ACCC if the IGWC reasonably believes that the disclosure is reasonably necessary for, or directly related to, the performance of the functions or the exercise of the powers of the Bureau or the ACCC under the Water Act.

The power is necessary for the IGWC to be able to share information which would assist the ACCC and Bureau to effectively carry out their duties and functions under the Water Act.

Privacy obligations for the ACCC

The ACCC is the appropriate enforcement agency for contraventions of Part 5A (see paragraph 137(bb) of the Water Act). Part 5A commences on 1 July 2026 and includes prohibitions against insider trading and market manipulation (see Division 4 and Division 4A of the Water Act). In determining whether Part 5A has been contravened, the ACCC will use water markets information which is given to the Bureau under Part 7A.

Information or documents disclosed by the Bureau to the ACCC under subsection 135P(2) of the Water Act may contain personal information. The Privacy Act and the Australian Privacy Principles apply to any personal information disclosed by the Bureau or IGWC to the ACCC.

Further, water markets information or documents containing water markets information (including personal information) may be required or compelled by the ACCC under section 239AJ of the Water Act in relation to the ACCC’s powers to enforce Part 5A of the Water Act. The Privacy Act and Australian Privacy Principles apply to any personal information required or compelled by the ACCC under section 239AJ.

In addition, any personal information disclosed to the ACCC by the Bureau under section 135P of the Water Act or required or compelled by the ACCC under section 239AJ of the Water Act, is also subject to protection under the Competition and Consumer Act 2010.

Details/ Operation

The Amendment Regulations are a legislative instrument for the purposes of the Legislation Act 2003.

Details of the Amendment Regulations are set out in Attachment A.

Other

The Amendment Regulations are compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.

Attachment A

Details of the Water Amendment (Water Markets Information) Regulations 2026

Section 1 – Name

This section provides that the name of the instrument is the Water Amendment (Water Markets Information) Regulations 2026 (Amendment Regulations).

Section 2 – Commencement

This section provides for the Amendment Regulations to commence on 1 July 2026.

Section 3 – Authority

This section provides that the Amendment Regulations are made under the Water Act 2007 (Water Act).

Section 4 – Schedule

This section provides that the Water Regulations 2008 (Water Regulations) are amended as set out in Schedule 1. Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

SCHEDULE 1 – AMENDMENTS

Water Regulations 2008

Item 1 Subregulation 1.03(1)

This item inserts new definitions relevant to the Amendment Regulations into subregulation 1.03(1) of the Water Regulations. 

Basin state water market authority – means an agency of a State enabled under a State law to approve, allow or register a trade or transfer of an eligible tradeable water right; or the Australian Registry Investments Pty Ltd (also known as NSW Land and Registry Services), which performs registry services on behalf of the NSW Government.

The Australian Registry Investments Pty Ltd (ACN 617 926 020), included at (b) of the definition of a Basin state water market authority, is the legal entity name of the NSW Land Registry Services. Australian Registry Investments, holds a 35-year concession to operate and maintain the land titles registry, including maintaining the Water Access Licence Register under the Water Management Act 2000 (NSW).

batched transaction – means a trade or transfer of an eligible tradeable water right that results from the batching together of two or more component trades or transfers of eligible tradeable water rights involving multiple buyers or sellers.

‘Batched transaction’ and ‘component trade or transfer’ are related definitions describing a type of trade arrangement undertaken by IIO water market authorities. A batched transaction refers to a single trade or transfer transaction that an IIO water market authority undertakes which contains more than one component being traded or transferred. For example, an IIO water market authority may undertake a batched transaction of an eligible tradeable water right which combines multiple trades of eligible tradeable water rights. Component trade or transfer is recognised as a specific term in order to support continued visibility of rights that may otherwise not be traceable due to batching.

Two examples are included in the definition to explain the relationship between a batched transaction and a component trade or transfer.

Category 1 water markets information is defined in regulation 7A.04 (see below)

Category 2 water markets information is defined in regulation 7A.05 (see below).

Category 3 water markets information is defined in regulation 7A.06 (see below).

Component trade or transfer – means a trade or transfer of an eligible tradeable water right that an IIO water market authority batches with one or more other component trades or transfers of eligible tradeable water rights into a batched transaction. See also the definition of ‘batched transaction’ (above).

IIO water market authority – means an irrigation infrastructure operator described in paragraph (b) of the definition of water market authority in subsection 4(1) of the Water Act. In other words, an IIO water market authority means an irrigation infrastructure operator who approves, allows or registers the trade or transfer of an eligible tradeable water right.

permanent eligible tradeable water right is defined in regulation 7A.02 (see below).  

relevant water register – for water markets information about an eligible tradeable water right, means whichever register, accounting system, or data management system maintained by a water market authority that records, and is updated to record, water markets information.

This definition is intentionally broad to accommodate differences in systems and terminology across Basin state and IIO water market authorities. It captures the system that serves as the authoritative ‘source of truth’ for the relevant information, including in circumstances where there may be more than one register or system used by a water market authority. That is, the definition captures the system where a decision on an eligible tradeable water right (such as a trade or transfer of that right) is recorded and thereby takes effect.

Examples are provided of relevant water registers to support understanding and application of this definition. The registers listed at paragraphs (a) to (e) are those established under Basin state legislation in relation to permanent eligible tradeable water rights on issue in that jurisdiction. Examples are not listed of the relevant water registers maintained in relation to temporary eligible tradeable water rights, acknowledging that these are commonly managed as separate registers.

The example provided at paragraph (f) refers more generally to the relevant water registers held by IIO water market authorities. These registers may be established in rules or policies relevant to the operations of that authority.

temporary eligible tradeable water right is defined in regulation 7A.03 (see below).

trade application – in relation to the trade or transfer of an eligible tradeable water right, means an application lodged with, or notified to, a water market authority to approve, allow or register the trade or transfer.

trading platform operator – means an eligible water markets intermediary (see the definition in subsection 4(1) of the Water Act) that provides a trading platform that meets specified criteria.

The trading platform must be a platform that:

• is an online-enabled application, website or system (however described)
• makes eligible tradeable water rights available for trade or transfer
• facilitates the trade or transfer of those rights in exchange for a commission or fee for any or all of the following intermediary services:
  • communicating acceptance of offers and/or counter-offers;
  • preparing contracts or other agreements;
  • arranging documents necessary for the trade or transfer; or
  • submitting applications to water market authorities to approve, allow or register trades or transfers.

The specification of ‘trading platform operators’ as a class of persons required to give pre-trade water markets information (buy and sell offers) to the Bureau is narrower than the proposal in the Roadmap.[7] The decision to narrow the scope was made early in the regulations’ development process in response to stakeholder feedback. Stakeholders raised the difficulty and burden associated with collecting, generating or recording pre-trade water markets information (i.e. buy and sell offers) in the form required for giving it to the Bureau, where this information is being collected or received by non-online means, such as in person and over the telephone. 

Item 2– After regulation 1.05B

Regulation 1.05C prescribes information for the purposes of the definition of ‘water markets information’ in subsection 4(1) of the Water Act. Paragraph (c) of the definition of ‘water markets information’ provides that the regulations may prescribe other information.

The information prescribed as ‘water markets information’ under regulation 1.05C relates to the identification of entities by including Australian Business Numbers, Australian Company Numbers and Australian Registered Body Numbers as water markets information.

This identifying information assists identifying parties to a trade to support the ACCC’s market integrity functions.   

Item 3 – After Part 7

This item inserts a new Part 7A – Water markets information into the Water Regulations.

The new Part 7A has three divisions:

• Division 7A.1 – Preliminary, which sets out the purposes of Part 7A;
• Division 7A.2 – Giving water markets information to the Bureau, which prescribes the requirements for giving water markets information to the Bureau including the kind of information that must be given, the classes of persons who must give it, when the information must be given, the extended meaning of terms used in these requirements, and any exceptions to these requirements; and
• Division 7A.3 – Collecting, generating or recording water markets information, which prescribes the requirements for collecting, generating or recording water markets information.

Division 7A.1 – Preliminary

7A.01 Purposes of this Part

This regulation provides that, for the purposes of sections 135F and 135H of the Water Act, this Part specifies:

• who must collect, generate or record and give a copy of water markets information to the Bureau;
• the kinds of water markets information that must be collected, generated or recorded and given to the Bureau;
• when the information must be given; and  
• the form and manner in which it must be given.

7A.02 Meaning of permanent eligible tradeable water right

This regulation defines ‘permanent eligible tradeable water right’. Permanent eligible tradeable water rights are both Category 1 water markets information (see regulation 7A.04) and Category 2 water markets information (see regulation 7A.05).

Water markets information relating to permanent eligible tradeable water rights is relevant to describing kinds of water markets information with respect to the requirements for giving water markets information to the Bureau under regulation 7A.07 and for collecting, generating or recording water markets information under regulation 7A.09. These requirements are discussed further below under regulation 7A.07.

Paragraphs 7A.02(a) and (b) provide an exhaustive list of permanent eligible tradeable water rights to which these requirements will apply. 

Paragraph 7A.02(a) lists permanent eligible tradeable water rights that are issued on a perpetual or ongoing basis. Note 1 provides that ‘water access entitlement’ (subparagraph (a)(i)), ‘irrigation right’ (subparagraph (a)(ii)) and ‘water delivery right’ (subregulation (a)(iv)) are defined in subsection 4(1) of the Water Act.

Subparagraph (a)(iii) describes that a right to a capped extraction share is the total amount of water that can be drawn from a watercourse at a certain point over a particular period of time. This right may be expressed as a volume on a right, such as a water access entitlement. In some jurisdictions, under certain circumstances, these are tradeable and meet the definition of an eligible tradeable water right. Note 2 provides two examples of two such rights to support understanding of the description at subparagraph (a)(iii).

Subparagraph (a)(v) includes a right, (other than a water access right or a water delivery right) that a person has against an infrastructure operator (other than an irrigation infrastructure operator) to receive water within the meaning of a permanent eligible tradeable water right.

This right is similar to an irrigation right, but this subparagraph (a)(v) relates to a right that a person has against an irrigation operator (as defined in subsection 7(2) of the Water Act), rather than an irrigation infrastructure operator (as required in paragraph (a) of the definition of ‘irrigation right’ in subsection 4(1) of the Water Act).

While an infrastructure operator may not also be an irrigation infrastructure operator, they may still have customers who irrigate and hold a right against the infrastructure operator to receive water for this purpose. 

Paragraph 7A.02(b) includes a right to take and use all or part of a volume of water that is conferred by a licence issued under the Water Act 1989 (Vic). These rights are issued for a fixed term and not on a perpetual or ongoing basis, unlike the rights listed in paragraph (a). 

7A.03 Meaning of temporary eligible tradeable water right

This regulation defines ‘temporary eligible tradeable water right’. Temporary eligible tradeable water rights are Category 2 water markets information (see regulation 7A.05).  

Water markets information relating to temporary eligible tradeable water rights is relevant to describing obligations with respect to the requirements for giving water markets information to the Bureau under regulation 7A.07 and for collecting, generating or recording the information under regulation 7A.09.

In particular, water markets information relating to temporary eligible tradeable water rights must be given to the Bureau under Items 5, 6 and 7 of the table at subregulation 7A.07(1). These requirements are discussed further below under regulation 7A.07.

Paragraphs 7A.03(a) and (b) provide an exhaustive list of temporary eligible tradeable water rights. These temporary eligible tradeable water rights are generally rights which are assigned against permanent eligible tradeable water rights.

In Queensland, the term ‘water allocation’ is used to describe the permanent right that meets the definition of a water access entitlement in the Water Act 2000 (Qld). A seasonal water assignment with respect to a water allocation under the Water Act 2000 (Qld) is equivalent to a water allocation at subparagraph 7A.03(a)(i) (which is assigned against the permanent eligible tradeable water right that is a water access entitlement in subparagraph 7A.02(a)(i)). The temporary eligible tradeable water right provided for in paragraph 7A.03(b) is intended to apply to a seasonal water assignment that is assigned against a water licence within the meaning of the Water Act 2000 (Qld). The right listed at paragraph (b) is provided for separately because it is not assigned against a permanent eligible tradeable water right.   

Note 1 provides that ‘irrigation right’ (subparagraph (a)(ii)), ‘water access right’ (subparagraph (a)(iv)), ‘water allocation’ (subparagraph (a)(i)) and ‘water delivery right’ (subparagraph (a)(iii)) are defined in subsection 4(1) of the Water Act.

7A.04 Meaning of Category 1 water markets information

This regulation defines ‘Category 1 water markets information’. This term is relevant to the kinds of water markets information described in column 2 of subregulation 7A.07(1) for table items 1 and 2. 

Regulation 7A.04 provides that ‘Category 1 water markets information’ is information about a permanent eligible tradeable water right (regulation 7A.02) but excludes information about capped extraction shares (subparagraph 7A.02 (a)(iii)). 

Capped extraction shares are excluded from Category 1 requirements due to their unique nature and limited tradability, which makes the burden and privacy risks associated with applying Category 1 obligations with respect to these rights, unjustifiable.

There are currently only two known types of capped extraction share in the Murray–Darling Basin where trade is allowed. These are provided for in the examples in paragraphs (a) and (b) of Note 2 for regulation 7A.02. The individual daily extraction component, within the meaning of the Water Management Act 2000 (NSW) is expressed as a component of a water access entitlement (subparagraph 7A.02(a)(i)). The notional rationing rate, within the meaning of the Water Act 1989 (Vic) is expressed as a component on a general place of take approval in Victoria (a general place of take approval is not, in itself, an eligible tradeable water right).

Trade in these two types of capped extraction shares is only allowed in a few locations and is limited to times when extraction needs to be limited. While the conduct regulator will have an interest in trading activity during these times, and while it is expected that trade in these types of water rights will grow over time, there is currently no justifiable value in requiring ownership information about these rights by requiring Category 1 information about capped extraction shares.

Category 2 water markets information will still be required with respect to the trade or transfer of these rights in relation to capped extraction shares, as provided for in item 5 of the table at subregulation 7A.07(1). This information will include information that identifies the entities involved in the trade or transfer.

7A.05 Meaning of Category 2 water markets information

This regulation defines ‘Category 2 water markets information’. This term is relevant to the kinds of water markets information described in column 2 of subregulation 7A.07(1) for table items 3, 4, 5, 6 and 7.

Regulation 7A.05 provides that ‘Category 2 water markets information’ is water markets information about the trade or transfer of permanent eligible tradeable water rights (regulation 7A.02), or the trade or transfer of temporary eligible tradeable water rights (regulation 7A.03). 

Paragraphs 7A.05(a) to (i) provide more detail, described in broad terms, about the kinds of information that is Category 2 water markets information. 

7A.06 Meaning of Category 3 water markets information

This regulation defines ‘Category 3 water markets information’, which is relevant only to water market information that trading platform operators must give to the Bureau. This term is relevant to the kinds of water markets information described in column 2 of subregulation 7A.07(1) for table items 8 and 9.

Roadmap[8] recommendation 5 recommended the Commonwealth should require water market intermediaries to report pre-trade price data (buy and sell offers) for all tradeable water rights, including water delivery and irrigation rights. The scope of pre-trade data to which this obligation will apply is narrower in scope than proposed in the Roadmap, in that trading platform operators will only be required to provide pre-trade data in relation to water allocations provided for in subparagraph 7A.03(a)(i) in the definition of a temporary eligible tradeable water right. This decision to limit the scope of pre-trade data to allocations, was made in response to stakeholder feedback regarding the difficulty and burden associated with collecting and reporting this information, where it is being collected or received by non-online means, such as in person and over the telephone.

Division 7A.2—Giving water markets information to the Bureau

7A.07 Requirements for giving water markets information to the Bureau

This regulation prescribes the requirements, for the purposes of section 135F and 135H of the Water Act, for giving water markets information to the Bureau, provides extended meanings relevant to terms referenced in these requirements and provides exceptions that apply to these requirements. 

Subregulation 7A.07(1) prescribes the requirements for the classes of person who must give a copy of water markets information in their custody, possession or control, to the Bureau, the kind of information that must be given, and when the information must be given.  

The obligations for each class of person are drafted to ensure their applicability despite differences in water markets management and legislative frameworks between persons within each class, including processes for approving, allowing and registering trades, and the mix of eligible tradeable water rights on issue.  

Subregulations 7A.07(2) and 7A.07(3) provide extended meanings for the terms ‘on issue’ and ‘updating’ respectively.

Subregulations 7A.07(4) to 7A.07(7) provide exceptions to the requirements provided for in the table in subregulation 7A.07(1). 

The exceptions are necessary to accommodate the few instances where the obligations with respect to the kinds of information described for that obligation should not apply. Providing these as exceptions avoids compromising and overcomplicating the broad applicability of the obligations in subregulation 7A.07(1). 

Subregulation 7A.07(1) prescribes, for the purposes of subsections 135F(1) and (2) of the Water Act, the requirements for giving water markets information to the Bureau. The table at subregulation 7A.07(1) sets out the classes of persons who must give this information (Column 1), the kinds of water markets information that must be given to the Bureau (Column 2) and the time for giving the relevant water markets information to the Bureau (Column 3).

Item 1

The requirements at item 1 apply to water market authorities with respect to Category 1 water markets information about permanent eligible tradeable water rights (other than capped extraction shares) on issue with the authority immediately before 1 July 2027, or first entered into, or updated on, a relevant water register for the information between 1 July 2027 and 31 July 2027.

‘On issue’ with a water market authority includes, without limitation, on issue with the authority on behalf of a Minister. This may occur, for example, where the relevant state legislation specifies that the eligible tradeable water right is to be issued by the Minister, but that power has been delegated to, or is exercised by, the water market authority (see subregulation 7A.07(2)).

A copy of the information is required to be given to the Bureau no later than the end of 1 August 2027. This allows additional time for water market authorities to ensure this information complies with the form and manner requirements specified in regulation 7A.08 and complies with the WMDS (if any) as required by paragraph 135F(3)(b) of the Water Act. 

Item 1 paragraph (a) requires a water market authority to give a copy of Category 1 water markets information about a permanent eligible tradeable water right (other than capped extraction share) that is on issue with a water market authority immediately before 1 July 2027 to the Bureau. A copy of this information is to be given to the Bureau by no later than the end of 1 August 2027. This requirement is limited to those permanent eligible tradeable water rights that are on issue with that water market authority.

This requirement is intended to provide the Bureau with a snapshot of existing water markets information on issue with a water market authority when requirements for giving water markets information commence on 1 July 2027. It is anticipated that more time may be needed for this initial period because of the significant volume of existing Category 1 records at 1 July 2027.

Item 1 Paragraph (b) applies to creation of new permanent eligible tradeable water rights (other than capped extraction shares) between 1 July 2027 and 31 July 2027. A copy of this information is to be given to the Bureau by no later than the end of 1 August 2027. 

Paragraph (b) would apply, for example, if the owner of a permanent eligible tradeable water right applied to their water market authority to subdivide that right into two smaller rights. The subdivision does not change the ownership or location of the right (and is, therefore, not a trade or transfer). However, it would reduce the volume recorded against the original right (see (c) below) and a new eligible tradeable water right would need to be created. The volume recorded for the new eligible tradeable water right would need to be equal to the amount of the reduction in volume for the original right. If the water market authority agrees to the subdivision, they would enter information about the new eligible tradeable water right onto the relevant water register for the information for the first time. In entering this information on the register, a water market authority will be undertaking the action described in paragraph (b).

The water market authority making the decision to approve the subdivision may not be the same water market authority that first enters information about the permanent eligible tradeable water right on to a relevant water register for the information. These two functions may be taken by different water markets authorities. If this is the case, the requirement to give the water markets information applies to the water market authority that enters the information about the new permanent eligible tradeable water right onto the relevant water register.

Item 1 Paragraph (c) applies to updates to existing information about a permanent eligible tradeable water right (other than capped extraction share) on a relevant water register between 1 July 2027 and 31 July 2027. A copy of the information is to be given to the Bureau by no later than the end of 1 August 2027. 

‘Updating’ information on the relevant water register includes adding to or changing the information, or correcting the information (see subregulation 7A.07(3)). 

Paragraph (c) would apply, for example, if the owner of a permanent eligible tradeable water right applied to their water market authority to subdivide that right into two smaller rights. The subdivision does not change the ownership or location of the right (and is, therefore, not a trade or transfer). However, it would reduce the volume recorded against the original right and a new eligible tradeable water right would need to be created. The volume recorded for the original eligible tradeable water right would need to be reduced by the amount of volume for the new eligible tradeable water right. If the water market authority agrees to the subdivision, they would update information about the existing eligible tradeable water right on the relevant water register for that information, to reduce the volume associated with that right. In updating the volume recorded on the relevant water register for the existing right, the water market authority is undertaking the action described in paragraph (c).

The water market authority making the decision to approve the subdivision may not be the same water market authority that takes the action to update information about the existing permanent eligible tradeable water right onto the register. The requirement to give information to the Bureau applies to the authority who enters information about the existing permanent eligible tradeable water right onto a relevant water register for the information. 

Item 2

The requirements at item 2 apply to water market authorities with respect to Category 1 water markets information about permanent eligible tradeable water rights (other than capped extraction shares) on issue with a water market authority on or after 1 August 2027. 

The requirements at item 2 work similarly to paragraphs 1(b) and (c) of item 1 but are ongoing obligations from 1 August 2027. 

Under item 2, a water market authority must give a copy of the required information to the Bureau by the end of the first business day after the day on which the authority enters the information onto the register or updates the information (as applicable). The timing requirements differ from items 1(b) and (c) because, from 1 August 2027, water market authorities will have had sufficient time to prepare processes and systems to be fully compliant with timing requirements. As a consequence, they will be able to meet the more stringent timing requirements to give the information by no later than the end of the next business day. 

Item 3

The requirements at item 3 apply to Basin state water market authorities with respect to Category 2 water markets information about applications or notifications for the trade or transfer of a water access entitlement. 

Where the authority finds that a trade application lodged with, or notified to, that authority in respect of that trade or transfer meets all the requirements for the authority to be able to assess the application prior to registration, the Basin state water market authority is required to give information to the Bureau. This requirement applies whether or not the assessment is for the purpose of approving the application or, if approval is not required before registration, registering the application.

In other words, the requirement to give the information will not apply where a trade application is not complete, or where it does not contain all the information necessary for the Basin state water market authority to assess the application.

The requirement will also only apply where the value of the trade or transfer is more than zero (see subregulation 7A.07(4)). A trade or transfer may have zero value where, for example, it involves a transfer of water rights from one part of a valley to another, but the water right is still owned by the same owner. The exception for ‘zero value’ trades and transfers reflects the assessment that the Bureau publishing water markets information about zero value trades and transfers is of limited benefit when compared to the burden on water market authorities to provide this information.

The purpose of requiring the information at this point in the trade approval process is to provide early transparency to the market about trade in water access entitlement (see subparagraph 7A.02(a)(i)). The information will, at this point, be of sufficient quality and completeness to be beneficial to market transparency, despite the trade or transfer not being final.

This is consistent with the Roadmap’s[9] objective to provide more transparent and timely trade information to the market. There can be a significant delay between when an offer to buy or sell water access entitlement is matched and when the trade is final (that is, when the trade is registered causing it to take effect). This results in a delay in information about the trade or transfer, such as price and volume reaching the market for these high value water rights.

The requirement is limited to Basin state water market authorities because only they approve, allow or register the trade or transfer of water access entitlements. 

The requirement will only apply where, on or after 1 July 2027, the Basin state water market authority either enters information about the trade or transfer onto (paragraph (b)), or updates the information on (paragraph (c)), the relevant water register, to reflect information about the trade or transfer that is the subject of the decision at paragraph (a).

‘Updating’ information on the relevant water register includes adding to, changing or correcting the information (see subregulation 7A.07(3)).

The information must be given by the end of the first business day after the day on which the authority enters the information onto the register or updates the information (as applicable). 

Item 4

The requirements at item 4 apply to a Basin state water market authority where Category 2 water markets information about a water access entitlement has been given to the Bureau in accordance with Item 3 and that trade application is subsequently withdrawn or has lapsed or expired.

Item 4 provides a means of identifying why information about a trade or transfer of a water access entitlement given to the Bureau in accordance with item 3 is never completed (i.e. registered or approved and the information is not entered or updated on the relevant register (in accordance with item 5)). The information effectively identifies the trade process is complete with no further action to follow.

In order for the requirements at item 4 to apply, paragraphs (a), (b) and (c) must be met:

• a Basin state water market authority has given a copy of Category 2 water markets information to the Bureau about the trade or transfer in accordance with item 3 (paragraph (a));
• the trade application or notification relevant to the description in paragraph (a) must have been withdrawn or has lapsed or expired (paragraph (b)). The intention is that paragraph (b) should be interpreted broadly and cover those situations where a Basin state water market authority is no longer required to deal with the trade application at some stage prior to it making a decision on that application; and
• the Basin Sate water market authority updates the relevant water register for the information to record that the application has been withdrawn, or has lapsed or expired (paragraph (c)). ‘Updating’ information on the relevant water register includes adding to, changing or correcting the information (see subregulation 7A.07(3)).

Once the relevant register has been updated, a copy of the Category 2 information must be given to the Bureau by the end of the first business day after the day on which the register is updated.  

Item 5

The requirements at item 5 apply to all water market authorities with respect to Category 2 water markets information about approved (or however else described) trades or transfers of temporary eligible tradeable water rights and registered (or however else described) trades or transfers of permanent eligible tradeable water rights. 

Item 5 paragraph (a) provides that this requirement applies with respect to a trade application lodged with, or notified to, the water market authority.

Item 5 paragraph (b) provides that this requirement applies to either a decision by the authority to register (or however else described) the trade or transfer of a permanent eligible tradeable water right, or a decision to approve (or however else described) the trade or transfer of a temporary eligible tradeable water right.

Item 5 Paragraph (c) provides that, in order for the requirement to apply, the water market authority enters information about the trade or transfer onto or updates the information on a relevant water register for the information, on or after 1 July 2027. ‘Updating’ information on the relevant water register includes adding to, changing or correcting the information (see subregulation 7A.07(3)).

The relevant water market authority must give a copy of the required information to the Bureau by the end of the first business day after the day on which the authority undertakes an action described in paragraph (c).

The water market authority that makes the decision described at paragraph (b) may not always be the same water market authority that undertakes an action described at paragraph (c). The requirement to give a copy of information to the Bureau applies to the authority who undertakes the action described at item (c).

Subregulation 7A.07(5) provides an exception for an IIO water market authority from these requirements, where the decision described in subparagraph (b)(ii) relates to the trade or transfer of a temporary eligible tradeable water right on or off the IIO water market authority’s bulk water access entitlement.

Item 6

Item 6 requires all water market authorities to give Category 2 water market information to the Bureau where a trade application for the trade or transfer of any eligible tradeable water right has been refused. This requirement applies in respect of all eligible tradeable water rights, whether they are permanent eligible tradeable water rights, temporary eligible tradeable water rights or neither.  

The requirement applies where a trade application has been lodged with, or notified to, a water market authority (see paragraph 6(a)) and, on or after 1 July, the authority decides to refuse the trade or transfer (see paragraph 6(b)). 

Legitimate trade refusals can occur for a number of reasons such as physical constraints, environmental risks and local community protections. For example, a trade may be refused because the origin and destination locations on a trade application are not physically connected.

Requiring water market authorities to provide water markets information about trade refusals, including the reasons for these refusals, creates a transparent process for trade approvals and supports enforcement agencies.

The water market authority must give a copy of the required information to the Bureau by the end of the first business day after the day on which the authority decides to refuse the trade or transfer. 

Subregulation 7A.07(5) provides an exception for an IIO water market authority from the requirements of item 6 where the application which has been refused relates to the trade or transfer of a temporary eligible tradeable water right on or off the IIO water market authority’s bulk water access entitlement. 

Item 7

The requirements at item 7 only apply to IIO water market authorities with respect to Category 2 water markets information about a component trade or transfer of an eligible tradeable water right.

It is important to recognise that the requirement in item 7 does not apply to the batched transaction that is made up of the component trades or transfers. The Category 2 water markets information required to be given under Item 7 only applies to the component trades or transfers that make up a batched transaction. 

This is necessary to accommodate a trade application process that is unique to some IIO water market authorities, where a customer trades or transfers eligible tradeable water rights with a party external to the IIO. Because a buyer or seller external to the IIO may be seeking to buy or sell a large parcel of water, the IIO may batch multiple customer trades or transfers of smaller parcels into a single larger parcel of water. These customer trades are defined in subregulation 1.03(1) as a component trade or transfer.

The requirements at item 7 only apply to the component trades or transfers batched by an IIO water market authority into a batched transaction and not the batched transaction itself (see paragraph(a) of item 7). The requirements apply if the IIO takes one of the steps described in paragraph (b) for the information. These additional steps comprise the IIO water market authority entering or updating the information onto or on the relevant water register or relevant water account (see subparagraphs 7(b)(i) or (ii)) on or after 1 July 2027.

‘Updating’ information on the relevant water register includes adding to, changing or correcting the information (see subregulation 7A.07(3)).

The IIO water market authority is required to give a copy of the Category 2 water markets information to the Bureau no later than the end of the first business day after the day on which the information is entered onto or updated on a relevant water register for the information or a water account relevant to the information. 

Item 8

Item 8 requires a trading platform operator to give Category 3 water markets information about a buy or sell offer for water allocations published on or after 1 July 2027 by a trading platform operator on a trading platform they provide. The information must be given by the end of the hour after the buy or sell offer is published on the trading platform.

The reason why trading platform operators have much shorter timeframes in which to give information to the Bureau compared to water market authorities relates to the different requirements of the services they provide. Trading platform operator services are provided in near real time and the information does not require the same level of scrutiny as a trade approval process. 

While the Roadmap[10] is not prescriptive regarding the exact timeframes within which data should be provided to the Bureau, it makes frequent reference to the need for ‘near real time’ availability of water markets information. See the section in the Roadmap[11] on automated data capture and transfer (p 61) which recommends a move ‘toward real time reporting’.

Item 9

Item 9 requires a trading platform operator to give Category 3 water markets information where information about a buy or sell offer was given to the Bureau in accordance with item 8 where that information is subsequently updated by the trading platform operator. These actions are: where a trading platform operator has given a copy of Category 3 water markets information to the Bureau under item 8 (paragraph 9(a)); and where the information about the buy or sell offer is updated on the trading platform (paragraph 9(b)).

‘Updating’ information on the relevant water register includes adding to, changing or correcting the information (see subregulation 7A.07(3)).

The trading platform operator is required to give the information to the Bureau by the end of the hour after the information is updated on the trading platform.

Subregulation 7A.07(2) provides an extended meaning of ‘on issue’. This is needed to clarify what is meant by ‘on issue with a water market authority’ where referenced in item 1(a) and 2 of the table at subregulation 7A.07(1) in describing the kinds of Category 1 water markets information about permanent eligible tradeable water rights to which obligations placed on water market authorities at these items apply.  

Generally, the function of issuing a permanent eligible tradeable water right under a Basin state’s legislative framework for water management is delegated by the relevant Minister under that legislation to a water market authority. The extended meaning clarifies that ‘on issue with a water market authority’ applies to permanent eligible tradeable water rights issued by a water market authority or issued by a water market authority on behalf of a Minister under the relevant Basin state legislative framework.

Subregulation 7A.07(3) provides an extended meaning of ‘updating’ where referenced in items 1, 2, 3, 4, 5, 7 and 9 in the table at subregulation 7A.07(1). The extended meaning is included to clarify that, where updating is referenced at these items with respect to updating a relevant water register or water account, it should be understood to mean adding to, changing or correcting the information. 

Section 18A of the Acts Interpretation Act 1901 (Cth) provides that, where a word or phrase is given a particular meaning, other parts of speech and grammatical forms of that word or phrase have corresponding meanings. As such, variants of these terms, such as ‘update’ or ‘updated’ would have a corresponding extended meaning.

An example is provided to improve understanding of what might require water markets information to be updated. The example given is that a notice is given under subsection 135Q(1) of the Water Act. This is a compliance notice issued by the IGWC where the IGWC considers that a person has contravened a requirement of the WMDS and the notice requires the person to rectify the contravention and comply with the conditions of the notice. If, for example, the notice was given with respect to incorrect information given to the Bureau by a water market authority about the price of a trade of a temporary eligible tradeable water right, this would require that information to be updated on the relevant water register or account for the information as referenced in column 2 of item 5(c)(ii) of the table in subregulation 7A.07(1). The water market authority would then be required to give this updated information to the Bureau by the end of the following business day.

Subregulation 7A.07(4) provides an exception with respect to a Basin state water market authority’s obligations specified at item 3 of the table at subregulation 7A.07(1). The exception provides that if the price recorded on a trade application or notification meeting the description of the kinds of water markets information in column 2 of this item is zero, a Basin state water market authority is not subject to the requirements at item 3. When a price is recorded as zero or nil on a trade application or notification, the right moves between the parties for no financial exchange (zero dollars).

The purpose of the requirements at item 3 is to provide early price transparency about the trade or transfer of water access entitlements to support the trading decisions of water market participants. Trades or transfers for zero price are unnecessary for this purpose. The exception therefore removes the burden on Basin state water market authorities in collecting, generating or recording this information and giving it to the Bureau.

Subregulation 7A.07(5) provides an exemption for an IIO water market authority from obligations provided for at items 5 and 6 of the table at 7A.07(1) where they apply to kinds of information about a trade or transfer of a temporary eligible tradeable water right on or off the IIO water market authority’s bulk water access entitlement. The exception is needed to clarify obligations with respect to the circumstance where a customer of an IIO water market authority trades a temporary eligible tradeable water right with a party external to the IIO. This circumstance involves two trade approval processes, one the responsibility of the IIO water market authority and the other the responsibility of the Basin state water market authority. Without the exception, item 5 would require an IIO water market authority to give water markets information for both trade approval processes.

As further explanation, with respect to temporary eligible tradeable water rights, IIO water market authorities approve, allow or register trades or transfers of water assigned against an irrigation right. This right is described in subparagraph 7A.03(a)(ii). These rights can be traded internally between customers of the IIO water market authority and between an IIO customer and a party external to the IIO. The obligations provided for at items 5 and 6 should apply to information about trades internal to the IIO. However, they should only apply to their approval role with respect to trades with parties external to the IIO.  

Understanding the trade approval process for IIO customer trades with external parties requires an understanding of the relationship between a Basin state water market authority, IIO water market authority, and IIO customer. An IIO water market authority is a customer of a Basin state water market authority. The Basin state water market authority is responsible for issuing the bulk water access entitlement held by an IIO water market authority and approving, registering or allowing trades or transfers associated with these. An IIO water market authority apportions its water access entitlement to its members as irrigation rights. The IIO water market authority is allocated water allocation against its water access entitlement. This allocation is assigned against an IIO customer’s irrigation right in proportion to the size of that right. This assignment creates the temporary eligible tradeable water right described at subparagraph 7A.03(a)(ii). The IIO water market authority is responsible for approving, registering or allowing trades or transfers associated with these.   

When an IIO customer applies to trade a temporary eligible tradeable water right with a party external to the IIO, there are two approval processes, one the responsibility of the IIO water market authority and the other the responsibility of the Basin state water market authority. 

Subregulation 7A.07(6) provides an exception to avoid unnecessary duplication where one or more water markets authorities are required to give the same information to the Bureau.

The exception applies where a water market authority is required to give the kinds of water markets information described in column 2 of items 1 to 7 of the table in subregulation 7A.07(1) and they reasonably believe that this information is already in the Bureau’s possession. For the exception to apply, the water market authority must notify the Bureau in writing that they will not be providing the information because of that belief. The notification can cover multiple instances of those requirements if it specifies the particular period for these instances.

This exception is needed to prevent obligations being placed on two water market authorities with respect to the same kind of water markets information. One of the circumstances where this could occur is where there is more than one Basin state water market authority with responsibility to approve, allow or register a trade or transfer of a permanent eligible tradeable water right. 

Depending on the type of trade dealing, in New South Wales and Queensland the trade or transfer of a water access entitlement may involve two separate water market authorities. The first is responsible for approving the trade or transfer and the second for registering the trade or transfer. Both would receive a trade application, or notification, with respect to that trade or transfer and both would make a decision about whether the trade application lodged with or notified to the authority meets all the requirements for the authority to be able to assess the application prior to registration. Both the approving water market authority and the registering water market authority would be required under item 3 of the table at subregulation 7A.07(1) to give Category 2 water markets information about the trade or transfer of water access entitlement (where the trade application meets all the requirements for the authority to be able to assess the application prior to registration) and information about the trade or transfer is entered onto or updated on a relevant water register for the information). 

The timing requirements for giving information to the Bureau would mean that the information would first be given to the Bureau by the approving water market authority. This provides the earliest point of price discovery to the market. 

To utilise this exception, the registering water market authority could write to the Bureau notifying them that, with respect to their obligations provided for at item 3, they reasonably believe the kinds of information required with respect to water access entitlement trades and transfers that require approval before registration, are already in the Bureau’s possession, having been given by the approving water market authority. The registering water market authority could advise this will always be the case because this information will always be given by the approving water market authority for these types of trades and transfers over the period specified in the notice. 

Subregulation 7A.07(7) provides an exception that relieves a water market authority or trading platform operator from complying with the requirement to give water markets information when updating a relevant water register, water account or trading platform to correct an error if the information was not given to the Bureau before the correction. This is needed to allow corrections to be made to water markets information prior to the information being given to the Bureau without these corrections triggering obligations in items 1 to 9 of the table in subregulation 7A.07(1).

7A.08 Form and manner for giving water markets information to the Bureau

This regulation provides the requirements for the form or manner for water markets information to be given to the Bureau.

Paragraph (1)(a) requires a copy of the water markets information to be given in accordance with the requirements set out in regulation 7A.08, while paragraph (1)(b) requires the information be given in accordance with any additional form and manner requirements specified in the Water Markets Data Standards 2026, as in force from time to time. 

In doing so this paragraph (b) incorporates the Water Market Data Standards 2026 by reference for the purpose of paragraph 135J(1)(c) of the Water Act (see above). 

Subregulation 7A.08(2) requires the information contained in the copy to be given to the Bureau via the service made available by the Bureau known as the Water Data Hub, but would also include that service continuing in existence under a different name. This is intended to future proof the regulations to ensure the requirement continues to apply even if the name of the Water Data Hub changes.

Subregulation 7A.08(3) requires the copy of the information to be in the form, and lodged in the manner, permitted by the Water Markets Data Standards 2026, as in force from time to time (see above).

Division 7A.3—Collecting, generating or recording water markets information

7A.09 Requirements for collecting, generating or recording water markets information

This regulation prescribes, for the purposes of subsection 135H(1) of the Water Act, the requirements for collecting, generating or recording water markets information.

Subsection 135H(1) of the Water Act provides for the regulations to specify who must collect, generate or record water markets information, and the kind of water markets information that must be collected, generated or recorded. 

Paragraph 7A.09(1)(a) provides that the requirements to collect, generate or record the water markets information will apply to the same classes of people required to give the information to the Bureau that are provided for in column 1 of items 1 to 9 of the table in subregulation 7A.07(1).

Paragraph 7A.09(1)(b) provides that the information a person within a class of persons described in paragraph (a) is required to collect, generate or record is the same information the person is required to give to the Bureau described in column 2 for the item.

In short, where a person is required to give water markets information to the Bureau under regulation 7A.07(1), the person is also required to collect, generate or record the same water markets information. The requirements in regulation 7A.09 ensure that water markets information is in a person’s possession, custody or control, to enable the comprehensive reporting of data to the Bureau under section 135F.

Subregulation 7A.09(2) provides that the section applies from, and including, 1 July 2027. This provision is necessary to ensure that the requirements under subregulation 7A.09(1) do not apply before 1 July 2027, despite the earlier commencement of the Amendment Regulations. 

The regulations do not prescribe for the information to be recorded otherwise than electronically (see paragraph 135H(2)(a)).

ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Water Amendment (Water Markets Information) Regulations 2026

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The purpose of the Water Amendment (Water Markets Information) Regulations 2026 (Amendment Regulations) is to amend the Water Regulations 2008 by prescribing matters relating to mandatory water markets information obligations.  

The purpose of the Amendment Regulations is to set out requirements for the purposes of sections 135F and 135H of the Water Act 2007 (the Water Act) relating to:

• who must collect, generate or record and give water markets information to the Bureau of Meteorology (the Bureau);
• the kinds of water markets information that must be collected, generated or recorded and given to the Bureau;
• the time within which the information must be given; and
• the form and manner in which the information must be given.

Human rights implications

The Amendment Regulations engage the right to privacy and reputation under Article 17 of the International Covenant on Civil and Political Rights (ICCPR).

Right to privacy and reputation

Article 17 of the ICCPR prohibits arbitrary or unlawful interference with an individual’s privacy, family, home, or correspondence, as well as attacks on their honour or reputation. The right to privacy can be limited to achieve a legitimate objective where the limitations are lawful and not arbitrary. For an interference with the right to privacy to be permissible, the interference must be authorised by law, be for a reason consistent with the ICCPR, and be reasonable, necessary and proportionate in the particular circumstances.

The United Nations Human Rights Committee (the UNHCR) has not defined ‘privacy’, but it is generally understood to comprise of a freedom from unwanted and unreasonable intrusions into activities that society recognises as falling within the sphere of individual autonomy. The collection and sharing of information (public or otherwise) may be considered to engage and offend the right to privacy.

Personal information may be collected under the new requirements imposed by the Amendment Regulations, for example:

• prescribed information under the definition of water markets information (see regulation 1.05C) may include personal information within the meaning of the Privacy Act 1988, such as where an individual is a sole trader and their name is linked to their ABN or ACN;
• items 1 and 2 of the table in subregulation 7A.07(1) require water market authorities to give Category 1 water markets information. This includes ‘information that identifies such water rights and owners’ (see paragraph 7A.04(a));
• items 3, 5 and 7 of the table in subregulation 7A.07(1) require Basin state water market authorities, water market authorities, or IIO water market authorities (respectively) to give Category 2 water markets information. This includes ‘information that identifies the permanent eligible tradeable water rights or temporary eligible tradeable water rights that are the subject of such trades or transfers and the entities involved in them’ (see paragraph 7A.05(a)) and ‘identifiers assigned by water market authorities … that identify a trade or transfer as distinct from other trades or transfers’ (see paragraph 7A.05(i) – the identifier may be based on the relevant entity);
• items 8 and 9 of the table in subregulation 7A.07(1) require trading platform operators to give Category 3 water markets information. This includes ‘information that identifies such buy or sell offers and the entities involved in them’ (see paragraph 7A.06(a)); and
• subregulation 7A.09(1) specifies the same classes of persons specified in the table in subregulation 7A.07(1) as being required to ‘collect, generate or record’ the same kinds of water markets information specified in the table in subregulation 7A.07(1).

This means that in some cases personal information will be required to be collected, generated or recorded and given to the Bureau via the Water Data Hub.

The collection, use and disclosure of personal information is subject to various safeguards under both Commonwealth and State legislation and in the way the information will be treated in practice.

Information included in all data fields identified as personal identifiable information will be double encrypted immediately on entry into the Water Data Hub. The Bureau will not have access to this personal identifying information. Access to the Water Data Hub is restricted using role-based privileges. Regardless of access level, the personal identifiable information cannot be read, modified or disclosed (except in cyphered form) whilst in Bureau custody.

If the Bureau reasonably believes that disclosure of information is reasonably necessary for, or directly related to, the performance of the functions or the exercise of the powers of the ACCC or the IGWC, the Bureau may disclose the information to the ACCC or the IGWC under section 135P of the Water Act. If the Bureau passes on information to the ACCC or IGWC, it will be transmitted in an encrypted format. The IGWC and ACCC will have decryption keys.

Paragraph 135D(2)(b) of the Water Act prohibits the Director of Meteorology from publishing water markets information to the extent that the information identifies a particular individual by means of the individual’s name, address, customer number or other identifier (including email address), unless the information is already published or is otherwise publicly available.

Furthermore, any personal information collected, used or disclosed by the Bureau under the amendments will be subject to Part 7A of the Water Act and the privacy requirements set out in the Privacy Act 1988 (Cth) (the Privacy Act). The Australian Privacy Principles contained in Schedule 1 of the Privacy Act will govern the collection, use and disclosure of that personal information.

The Privacy Act and the Australian Privacy Principles would also apply to any personal information disclosed to the ACCC and IGWC. Further protections apply under the Competition and Consumer Act 2010 (Cth) in relation to personal information compelled by the ACCC.

For water market authorities and trading platform operators, the following legislation and principles apply:

• the Privacy and Personal Information Protection Act 1998 (NSW);
• the Privacy and Data Protection Act 2014 (Vic);
• the Information Privacy Act 2014 (ACT);
• the Information Privacy Act 2009 (Qld);
• the Premier and Cabinet Circular 12 – Information Privacy Principles Instruction (SA).

Accordingly, the Regulations are compatible with the right to privacy and reputation provided for by Article 17 of the ICCPR.

Conclusion

The Amendment Regulations are compatible with human rights because, to the extent that they may limit human rights, those limitations are reasonable, necessary, and proportionate to the legitimate goals of the Amendment Regulations.

Senator the Hon Murray Watt

Minister for the Environment and Water

[1] Water Information Statement of Ambition 2023–28.

[2] Water market reform: final roadmap report.

[3] Water market reform: final roadmap report.

[4] Murray–Darling Basin water markets inquiry - final report.

[5] Water market reform: final roadmap report.

[6] Water Amendment (Water Markets Information) Regulations 2026 What We Heard Report - DCCEEW.

[7] Water market reform: final roadmap report

[8] Water market reform: final roadmap report

[9] Water market reform: final roadmap report

[10] Water market reform: final roadmap report

[11] Water market reform: final roadmap report