Significant new requirements impacting water market intermediaries have been introduced through the Water Amendment (Restoring Our Rivers) Bill 2023 (RoR Act). These reforms, which will come into effect on 1 July 2025, aim to enhance the integrity of the Murray-Darling Basin water markets.
Key Changes
The RoR Act establishes a new Code that governs the conduct of eligible water market intermediaries and sets out new requirements for handling client funds. The statutory trust accounting framework applies to intermediaries who receive money on behalf of others, ensuring robust management and protection of these funds.
Trust Accounting Framework
The framework mandates that any intermediary receiving money on behalf of another person must maintain a trust account. The regulations detail several critical aspects, including:
- Audit and external examination requirements;
- Accounting records and practices;
- Obligations for depositing and receiving trust funds;
- Handling the trade or transfer of tradeable water rights;
- Protection of trust monies;
- Managing trades across different jurisdictions;
- Interest management within the scheme; and
- Any other matters deemed relevant by the Minister.
Learn more: Water Markets Intermediaries – Code and Statutory Trust Accounting regulations Policy Proposal Paper 2024
Upcoming Information Session
To assist with these reforms, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) will host an information session on 15 August 2024. This session will outline the policy proposals and include a Q&A segment. You can register to attend this session via the following link: Water Markets Reforms: Information Session on the new Intermediaries Code.
How You Can Help
If you are an intermediary covered by an existing statutory trust accounting scheme, DCCEEW seeks your feedback on:
- The name of the scheme and any relevant legislation, regulations, codes, or industry standards; and
- Information on how your scheme addresses the matters set out in paragraphs (a)-(h) above.
Here is a template to help you provide the necessary information to DCCEEW. Please complete and return the template, along with any additional relevant details, to [email protected] by 9.00am Monday, 26 August 2024.
Your input is vital to ensuring that these reforms are effectively and practically implemented.
What is REINSW doing to help?
REINSW is lobbying on behalf of the industry in response to the Policy Proposal Paper by lodging a submission. In addition, we encourage you to provide any feedback you may have on the Policy Proposal Paper by submitting a response to [email protected] by 9.00am Monday, 26 August 2024. Here is a template that can be used to provide feedback on the policy proposals, but feedback in other formats will also be accepted.
Help and advice
Should you have any immediate questions or concerns, please do not hesitate to reach out to us. REINSW’s Helpline team is ready to help you 5 days a week. You can contact the team on (02) 9264 2343 or email [email protected].