Address to the Australian Water Association National Policy Forum

I’d like to begin by acknowledging the Traditional custodians of the lands on which we meet today - the Ngunnawal people - and pay my respects to their elders past and present, as well as any First Nations people here today. Your connections, knowledge, and stewardship of these lands and waters reaches back tens of thousands of years and we must always value that.

I also acknowledge Kevin Werksman and the entire board of the Australian Water Association – not only for hosting us today but also for your ongoing leadership and advocacy in the water space. Thanks for the invitation to join you here today to open this Policy Forum event. The AWA has a long and positive history of working closely with my department, the National Water Grid and with the Minister of the day.

I was pleased to take up this role last year, and have valued your contributions since that time. I look forward to reading the white paper out of today’s forum. Speaking of papers, I hear representatives from the Water Grid presented at your Connected by Water conference last month, and were awarded best paper.

I also want to recognise the contributions of DCCEEW’s First Nations Water Branch who spoke about water reform justice for First Nations peoples at that event, which I understand generated considerable interest during the two days. This sharing of ideas is important because when it comes to water management - we need input from all quarters. Water security impacts every community and every corner of our country.

So, our water management frameworks must adapt and evolve to take into consideration the variety of needs. Today’s forum couldn’t come at a more pertinent time, as we mark a year of reflection and renewal. Freshwater is facing a range of familiar hurdles as well as new challenges – ones that simply didn’t exist in 2004 when the National Water Initiative was agreed – or in 2012 when the was legislated.

The Albanese Government has a number of reviews underway, which will shape the future of water management, and, along with it, our ability to respond to crucial challenges in water security. Aside from the review of the Murray–Darling Basin Plan, there are reviews underway of: the Water Act the Inspector-General of Water Compliance the Snowy Water Inquiry Outcomes Implementation Deed, and last year a review was conducted of the Water for the Environment Special Account.

Together these reviews provide an opportunity to reflect on what’s working, and what can be done better. Today I can also announce the Productivity Commission will undertake its fourth national water inquiry, which will report back to government by September this year. This review is a statutory requirement, and while it adds to a lot of other work going on, there is benefit in each of these reviews coinciding, to inform future policy decisions.

The PC review will provide advice to governments on policy and regulatory settings that can support you in the water services sector. For the first time, we’ve asked the Productivity Commission to also investigate how the water services industry can continue to provide affordable services that meet customer expectations, while ensuring providers remain sustainable in the long run.

The Productivity Commission’s advice on national water pricing and independent economic regulation will feed into the policy and guidance being developed for the National Water Agreement, which I’ll touch on in a moment. Hearing your views on these issues will be critical for helping governments to shape modern and responsive industry regulation, so I urge you all to engage with the Productivity Commission on its review.

I know that one of the emerging issues around water management concerns the growing interest in data centre construction. We know data centres can bring a lot of opportunity to Australia, but they can also be heavy users of water and energy, and I have heard the concerns from my state and territory counterparts and groups like yours about having the right policy settings in place to manage that growing demand.

That’s why the data centre expectations released by my colleagues Tim Ayres and Andrew Charlton this week are so important. Data centres use innovative, efficient and sustainable solutions to minimise water use. They should engage early with water utilities, local communities and First Nations peoples, and to protect drinking water supplies, by using efficient, sustainable cooling, supplied by secure water sources suited to local conditions.

We also expect ensuring data centre operators to pay their share of water infrastructure costs and to provide ongoing transparent reporting about their water usage and efficiency. Our Government will work with States and Territories through the Water Ministerial Council to drive a consistent national approach, by embedding these expectations into water‑related approvals and regulatory processes across jurisdictions.

When it comes to an issue as broad as water, it’s not surprising that there are a lot of interested parties with responsibilities and vested interests - including state and local governments. I see our role as the Federal Government as a partner and convenor, supporting critical infrastructure, providing national frameworks and bringing together governments and industry.

Since May 2022, we’ve worked with State and Territory Governments to deliver more than 140 National Water Grid projects, through a $1.2 billion federal commitment. We know that water infrastructure does more than just store water in dams or move water through pipes - it supports communities, strengthens connection to Country, and enables better liveability, local agriculture, environmental stewardship and climate change resilience.

We’ve reinstated annual national Ministerial Council meetings, after almost a decade without one – to facilitate national leadership and partnerships on water matters. The latest meeting with all state and territory Water Ministers last December showed just how many shared issues there were – and just how much of an opportunity there is to work together to find win-wins.

One example is the Water Efficiency Labelling and Standards scheme which has saved Australians nearly $17 billion in utility costs and has reduced demand for water by more than 2,000 gigalitres since it began in 2005. At our December meeting, all Water Ministers recommitted to the scheme, signing a renewed intergovernmental agreement, and endorsing Terms of Reference fora statutory review that starts this year.

And our Government has also been working with the States and Territories to secure a National Water Agreement. This Agreement will defend against threats to our water security, strengthen roles for First Nations People, and help meet the needs of Australia’s growing population and critical industries. After 22 years of water policy guided by the National Water Initiative, it’s time for a modern national agreement to support sustainable water management.

I’ve signed the agreement on behalf of the Commonwealth, and we’re working with the State and Territories in good faith negotiations and collaboration. Establishing these kinds of agreements can be challenging, because states have differing – and sometimes conflicting – needs. That’s why the agreement has been drafted to allow for jurisdictional variations through supporting action plans and why all parties have given some ground during its development.

I look forward to their decisions to sign on. Until that happens, my department has started work to develop new and modernised national water policy and guidance. There are 6 areas of focus in the new national agreement that will be of keen interest to this room: Water administration.

Water planning and management. Engaging Aboriginal and Torres Strait Islander People. Independent economic regulation and water services pricing.

Water in urban environments, and Defining a basic level of service. We will also develop a Commonwealth Action Plan outlining how the Australian Government will contribute to delivering the objectives and outcomes of the National Water Agreement. Both these pieces of work will be done over the next two years.

Those in this room understand, more than most, the pressures Australia faces, through finite water resources, growing demand and climate impacts. Delivering a sustainable future for our national water resources is a matter that involves us all – and we all need to be part of the conversation. I wish you a productive and enjoyable forum here today, and look forward to seeing the outcomes of your discussions.

We acknowledge the Traditional Owners of country throughout Australia and recognise their continuing connection to land, waters and culture. We pay our respects to their Elders past, present and emerging.