From 1 July 2024, the take of all water under tagged water entitlements previously considered ‘grandfathered’ under section 12.23(2) of the Murray-Darling Basin Plan Water Trading Rules will be subject to allocation trade restrictions, consistent with all other tagged arrangements.

The removal of this exemption will occur from 1 July 2024 as amendments come into effect under Federal legislation through the commencement of the Water Amendment (Restoring Our Rivers) Act 2023.

The Victorian Government supports the removal of this exemption across the Murray-Darling Basin in order to provide a level playing field in the water market and ensure that all water users have access to trade opportunities under the same rules.

Changes will be made to the Victorian regulatory framework to align with the changes to Commonwealth legislation to make it clear that all water users are subject to the same trade restrictions.

The removal of this exemption was recommended by the Australian Competition and Consumer Commission’s Murray-Darling Basin water markets inquiry in 2021, which found that these arrangements afford a small number of market participants an inequitable exemption from restrictions on inter-valley trade. You can read the inquiry report here.

If you are one of the entitlement holders considered ‘grandfathered’ by Victoria your water corporation will have written to you to notify you of the changes to your tagged arrangement.

For more information about the change to Commonwealth legislation please see the Department of Climate Change, Energy, the Environment and Water’s website.

For more information about the removal of the exemption and what it means for you, please see the Frequently Asked Questions below:

PDF: Frequently Asked Questions – Removal of the 'grandfathered' status exemption for tagged water entitlements (314kb)