More than $610 million will be spent in the coming financial year on a mix of voluntary water buybacks, water-saving infrastructure and constraints under a revamped Murray-Darling Basin Plan that will restore vast quantities of water to Australia's largest and most important river system.
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The figure has not been officially announced by the government and was found submerged in Federal Budget papers released on May 14.
According to a table in Budget Paper 4, $613.4m will be drawn down from the Water for the Environment Special Account during 2024-25, leaving $872m in the bank.
It will be used to help Labor meet a pledge to deliver the MDBP in full, including its 2024-25 target of returning 100GL of environmental flows.
A Department of Climate Change, Energy, the Environment and Water spokesperson said the government was "not disclosing the details of funding set aside for water recovery due to commercial sensitivities".
However, it will be directed at things like water purchases, water-saving infrastructure and constraints, a technical term for anything that reduces the ability to deliver water via the river for any purpose, including for the environment.
It is not known how it will be carved-up.
In February, Environment and Water Minister Tanya Plibersek revealed that farmers, irrigators and water traders were to receive around $205 million for 26.35GL per year of Basin water entitlements.
The majority of those purchases will be diverted into the southern basin and, while they did not contribute to the outstanding amount of water needed under the MDBP, they nevertheless provide some guide to the current market.
However, the amount paid for each individual transaction is dependant on several factors, including the relative reliability of the water.
Government data released in February showed the number of license holders wanting to sell Basin water entitlements in that round far exceeded what was needed to hit target volumes in some catchments.
Ms Plibersek said at the time that the tender process showed the direct purchasing of water - the first in the basin since 2020 - "can be effective" as one tool to reclaim water rights.
However, it is unknown if that appetite from farmers and irrigators will allow Labor to return 100GL next financial year or whether it will also be reliant on institutional investors to sell licences.
It is also unknown how much or if any of that pot of money will be handed to Victoria after ACM-agri exclusively reported last month that the state unlocked hundreds of millions of dollars in federal water efficiency funding after its "commitment" to the MDBP.
The state broke ranks with other Basin states and territories after refusing to sign up to the extended $13 billion plan, baulking at the prospect of the reintroduction of buybacks, before it was unveiled last August by Ms Plibersek.
No state can prevent the Commonwealth from buying water from willing sellers.
An MDBP audit two years ago found it would fall 750GL short of its total of 3,200GL by the deadline of June 2024.
Labor's plans for its Restoring Our Rivers Act were hatched following that audit and accelerated with a deal forged with The Greens.
The legislation, which passed parliament late last year after the government secured crossbench support, made changes to the Water Act and Basin Plan giving the states until 2027 to reach water recovery targets, along with extra funding and accountability measures.
The trade-off was that the agreement, which sets out how Basin water is to be shared, also paved the way for voluntary buybacks from primary producers.
The extended plan pushes for an additional 450GL of environmental water to be reclaimed through water-saving infrastructure projects, like weir upgrades and lining irrigation channels to stop water losses, along with rule changes, purchasing water entitlements from willing sellers after lifting the buyback cap and "community adjustment" assistance for communities impacted by the purchases.
Despite individual farmers willingly selling entitlements, community, irrigator and farmer representative groups are opposed to the buyback program.
Meanwhile, trade opportunities for irrigators will shortly open up with Murray-Darling Basin Authority acting executive director of river management Angus Paton announcing about 56GL of water would be available to trade downstream of the Barmah Choke on 1 July 2024.
The projected figure is 4GL less than the 60GL made available for the 2023-24 season, making it the second highest opening balance since trade restrictions through the Choke came into force in 2014.
"The Barmah Choke is a naturally narrow stretch of the River Murray that limits the volume of water which can be delivered downstream. The Choke therefore has a trade restriction to protect delivery to existing entitlement holders and to maintain the river environment," he said.
"Trading water from downstream to upstream of the Choke is always open, however trades from upstream to downstream can only happen if the same or greater amount has first gone the other way - this is the 'balance' of trade.
"The MDBA makes information about the opening balance available to water users ahead of the new season and this year we expect 56 GL will be available to trade."
There are no plans to relax the restriction on trade through the Barmah Choke in 2024-25.
The rules of trade are governed by the Murray-Darling Basin Agreement between the Commonwealth and the Basin state governments.
River managers will continue to assess the balance of trade through the Choke throughout the year, by considering factors like storage levels, expected demand, state allocations, and climate forecasts.
