Water Amendment (Ending Further Murray-Darling Basin Water Buybacks) Bill 2026
Senator McKENZIE (Victoria—Leader of the Nationals in the Senate) (11:51): I move: That this bill be now read a second time. I seek leave to table an explanatory memorandum relating to the bill and the devastating impact of Labor's water buybacks on the Murray-Darling Basin. Leave granted.
Senator McKENZIE: I table the explanatory memorandum and I seek leave to have the second reading speech incorporated in Hansard. Leave granted. The speech read as follows— The Water Amendment (Ending Further Murray-Darling Basin Water Buybacks) Bill 2026 aims to stop further water buybacks.
It stops the Commonwealth from buying more permanent Basin surface water if that purchase would grow the Commonwealth's total share. It responds to the Government's renewed reliance on permanent water purchases to recover water under the Basin Plan. And most importantly, it protects irrigators, farmers, and communities from more devastating Commonwealth buybacks destroying the fabric of regional Australia.
Every permanent purchase takes water entitlements out of productive use. Every purchase by the Commonwealth of water distorts the water market and pushes more people who grow our world-class food and fibre out of production. Irrigation communities are already at the end of their tether.
They cannot survive another round of Government buybacks. The need for this Bill has become even more urgent following the Murray-Darling Basin Authority's draft reconciliation of the Sustainable Diversion Limit Adjustment Mechanism and only 22 of the 39 notified projects are expected to be operational by the deadline. Those projects are estimated to deliver around 340 gigalitres of the original 605 gigalitre adjustment, leaving a shortfall of 265 gigalitres.
Basin communities should not be forced to surrender more productive water because governments failed to deliver the infrastructure and environmental projects they promised. The Albanese Government has refused to rule out using further buybacks to make up that shortfall. Farmers and regional businesses cannot plan, invest or employ people with the constant threat of another round of Commonwealth buybacks hanging over them.
This Bill gives them certainty because a failure by government must not become yet another demand for water from farmers. Buybacks hit the confidence of irrigators, processors and the regional businesses that depend on reliable access to water. They push the price of water up, so that businesses cannot compete in the market for water they need to run their operations.
Productive water underpins food and fibre production and the economic resilience of Basin communities. Most importantly, the loss of productive water to the Commonwealth to meet lofty environmental goals, jeopardises our food security and our national security. Australians want to eat food grown here, and share what we grow with the rest of the world.
We cannot be in a situation where we are importing food from overseas, when we have the best farms and farmers in the world. This bill amends the Water Act 2007 to prohibit new Commonwealth contracts for permanent or ongoing Basin surface water entitlements where the purchase would increase the Commonwealth's total share. The Commonwealth already has 72 per cent of the water in the Murray Darling Basin.
The Commonwealth can still manage and rebalance its existing portfolio of water, but it cannot buy more water simply to make up a shortfall. This will apply to contracts entered into from the day after Royal Assent. Existing contracts are untouched.
It also means that the Commonwealth purchasing water for the Environment Special Account for the 450 gigalitre target becomes expressly subject to the prohibition. This Bill does not stop any farmer selling an entitlement to another buyer on the market. Nor does it compel anyone to sell, create any offence or penalty, or reduce any entitlement holder's existing rights.
It also does not alter any right to fair compensation where government action compulsorily acquires, cancels or reduces an entitlement. It also adds some much needed and important reporting requirements on what water the Commonwealth owns. The Secretary must report each year on every Commonwealth contract to buy permanent Basin surface water, whether or not it increased the Commonwealth's share.
This report goes to the Minister by 30 September and must be tabled in each House within 15 sitting days. Reporting covers the full 2026-27 financial year, so Parliament gets a complete account of purchasing this year, including contracts signed before the bill commences. This Bill aims to regulate how the Commonwealth deals with water.
Irrigators and farmers must be completely transparent with their water purchases and water usage. The Commonwealth must meet that same standard. I commend the Bill to the Senate.
Senator McKENZIE: I seek leave to continue my remarks later. Leave granted; debate adjourned.