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Media Release - Department of Water and Energy Date: 22 April 2009 WATER LICENCE CHARGES Reports today claiming the NSW Government is putting a tax on rainwater are not true, NSW Deputy Director General for the Department of Water and Energy, David Harriss said.
He was responding to media claims that landholders are being taxed for water held in dams on their properties.
The charge referred to is a general water management fee, applicable to all water licence holders, which is used to offset the cost of managing the State’s limited water supplies.
These charges do not apply to basic landholder rights, such as water used for domestic purposes including rainwater tanks, and stock consumption. The bill in question relates to an irrigation licence from a watercourse.
“The fact that water is collected in a farm dam on a private property has wider implications for the distribution of water in the local catchment area, particularly neighbouring properties which may be deprived of water that would otherwise naturally flow through,” Mr Harriss said.
The standard water management charge for an unregulated river licence is $60. These charges are set by the Independent Pricing and Regulatory Tribunal (IPART).
“These charges are intended to recover a small proportion of the costs incurred by the Department of Water and Energy (DWE) in managing the State’s water resources, including equitably managing the quantity and quality of water available to the community and environment,” Mr Harriss said.
“These services are essential to protect the health of the State's freshwater resources and ecosystems on a sustainable basis now and into the future.”
The licence allows the landholder to generate an income from the land through irrigation,” Mr Harriss said.
“In addition, any water licence holder who wanted to sell their water entitlement would be expected to receive a sum many, many times the value of any licence or water management fees.
This year IPART will again be assessing appropriate water charges for the four years starting July 2010. Stakeholders will have the opportunity to make submissions on bulk water charges to IPART as part of its inquiry process.
Further information regarding water management charges for licensed water users is available on the Department’s website at
http://www.dwe.nsw.gov.au/water/pdf/price_water_mgt_charges_for_licensed_water.pdf
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