Water Trading
Allocation Assignments
An Allocation Assignment (formerly know as a temporary water transfer) is the assignment or transfer of current year allocation from one access licence to another.
Water access licences are treated like bank accounts. These water accounts track the actual water allocation (in megalitres) credited and debited on a daily basis. Credits to a water account include Available Water Determinations which are announced by the NSW Office of Water and water that has been assigned into the licence through Allocation Assignments. Debits to water accounts include the use of water through water supply works and allocation assignments from the water account.
Water available in a water account can be assigned (or transferred) to another water account on a temporary basis (for that season). This assignment or dealing has no permanent effect on the share component of the licence. Allocation assignments only affect the water allocations based on Available Water Determinations made in that water year.
Season Opening and Closing Dates - 2010/2011
Surface Water
Murrumbidgee, Murray and Lower Darling Valleys
1st July 2010 - 31 May 2011
All Other River Valleys
1st July 2010 - 15 June 2011
Groundwater
All Groundwater Sources
1st July 2010 - 15 June 2011
All dates are current for 2010/2011 season unless otherwise advised by NSW Office of Water.
Service Standards
The Council of Australian Governments (COAG) have developed a service standard for processing allocation assignments. These service standards set targets for State Water to achieve on each and every assignment application. State Water is also required to report their monthly performance against the standards. Trade Service Standard reports can be found below.
From the 1 July 2009, the Service Standard states that the following targets be met for:
Interstate - 90% of allocation trades to and from Victoria processed within 10 business days
Interstate - 90% of allocation trades to and from South Australia processed within 20 business days
Intrastate - 90% of allocation trades processed within 5 business days
Current trade statistics are published monthly here on our website.
NEW Allocation Assignment Forms
New Allocation Assignment Forms have been developed for both surface water and groundwater. These new forms are to be used for all valleys and groundwater districts within NSW.
Surface Water Form
Groundwater Form for Water Management Act
Groundwater Form for Water Act 1912
Fees
An application fee of $50 plus $0.50 per megalitre traded (GST free) up to a maximum of $150.00 applies for each application. The fee structure has been set in accordance with the 2006 IPART Bulk Water Pricing determination.
Examples of application fees (Application Fee + Megalitres traded x 0.50c = Fee for assignment)
$50 + 10ML x 0.50c = $55
$50 + 50ML x 0.50c = $75
$50 + 100ML x 0.50c = $100
$50 + 150ML x 0.50c = $125
$50 + 200ML x 0.50c = $150
$50 + 250ML x 0.50c = $150
State Water now requires the payment of variable usage charges for all allocation assignments involving a buyer licence not linked to a NSW Works Approval.
Applicants should note that the variable usage charge will be based on the valley of use. Variable usage charges should be included with the transfer fee on application.
Please contact State Water on 1300 662 077 to confirm the usage charge in your valley prior to lodging your application.
FAQ’s
Where can I find out how much water I have available to trade?
Contact State Water's Customer Information Centre between 8.30am and 4.30pm, weekdays on 1300 662 077. Alternatively access your water accounts via iWAS.
Do I need to indicate the sale price on my application form?
It is a requirement of IPART (Independent Pricing and Regulatory Tribunal) that the sale price per megalitre is recorded.
How long will my application take to be finalised?
An application to assign water must be completed in full to ensure processing is not delayed.
A service standard for processing times has been implemented by The Council of Australian Governments (COAG).
Interstate - 90% of allocation trades to and from Victoria processed within 10 business days
Interstate - 90% of allocation trades to and from South Australia processed within 20 business days
Intrastate - 90% of allocation trades processed within 5 business days
To ensure that you application is processed as quickly as possible, please contact State Water on 1300 662 077 to confirm your available water balance prior to lodging an application.
What is the fee for my application?
An application fee of $50 plus $0.50 per megalitre traded (GST free) up to a maximum of $150.00 applies for each application.
A variable usage charge may also apply to your application if the buyer licence is not linked to a NSW Works Approval. Please refer to the section detailing fees above to confirm if a variable usage charge is required for your application.
Can I pay my fee with credit card?
Yes, if you wish to pay you application fees by credit card please complete Section 6, Part 5 on the application form.
My application to transfer allocation was unsuccessful, will my application fee be returned ?
No. if you application is refused your fee will not be returned. You will need to lodge a new form as well as fee for assessment and approval. State Water encourages customers to take care when completing Allocation Assignment Forms.
How do l know if my paperwork is correct?
Customers must take their time and ensure their application is complete and accurate. Page two of the application form has been developed to guide customers in correctly completing their allocation assignment forms. Lodgement details, a guide to processing times and information on amending or withdrawing an application are all covered. This information will assist, ensuring that your application is correct.
Where can I get advice to help me complete my application?
State Water staff can assist you with information on your water account balances and rules relating to your valley/region. State Water cannot advise on what is right for your business. We encourage you to seek advice from an experienced broker or other professional adviser.
Can I trade water from my domestic and stock licence?
No. You can only trade water from a high security or general security water licence.
Will I be notified when my application has been finalised?
Yes. The nominated holder of the licence will be notified in writing when the application has been finalised. If an application has been lodged on your behalf by an agent, the agent will be notified.
Can I withdraw my application?
You must notify State Water in writing if you wish to withdraw your application. Consent to withdraw the application must be provided by both buyer and seller or your nominated agent.
Do I have to submit a current meter reading with my application?
Sellers are encouraged to submit current meter readings with each application. Please be aware of any un-finalised applications you may have already lodged with State Water or any water orders still outstanding.
What should I expect when using a broker?
When using a broker, it is reasonable to expect that your broker or agent has the expertise to help you gather the information necessary to lodge a correct and complete application.
Brokers should also be able to advise on trading rules that apply and whether your trade will comply with water trading rules. Applications that do not comply will be refused.
You should also expect that your broker will promptly lodge your application with the seller's water corporation and swiftly resolve any problems with your application.
If you have concerns about your trade, you should check with your water broker in the first instance to confirm the status of your transaction with State Water.