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Who must comply with Water Act 2007 (Cwlth) + state water entitlements?

The applicability test for Comply with Water Act 2007 (Cwlth) + state water entitlements, computed across 35 industries, 9 business structures and 6 size bands.

Short answer: Only if

Applies only if you hold water entitlements or take water. Whether it applies turns on a fact that no industry, structure or size settles on its own.

What the obligation is

Federal Water Act + state water Acts govern water entitlement + use.

The Water Act 2007 (Cth) is the framework for managing the Murray–Darling Basin, Australia's largest water resource, in the national interest. It required the Murray–Darling Basin Authority (MDBA) to prepare the Basin Plan 2012, which sets sustainable diversion limits on how much surface water and groundwater can be taken, requirements for state water resource plans, an environmental watering plan, a water quality and salinity management plan, and rules on trading water rights. Basin state governments write water resource plans that set local rules on how much water can be taken, and the entitlements, licences, metering and take that bind individual users are administered under state water law. Since 5 August 2021 the Inspector-General of Water Compliance has held the Commonwealth's Basin compliance and enforcement functions, and the ACCC develops and enforces water charge and water market rules.

The applicability test

Applies only if you hold water entitlements or take water. Whether it applies turns on a fact that no industry, structure or size settles on its own.

How the regulator frames it: Irrigators, farms, mining operations and other businesses in the Murray–Darling Basin that hold water access entitlements or licences, take surface water or groundwater, or trade water rights; businesses that levy water charges covered by the water charge rules; and Basin state governments, which are responsible for complying with water resource plans.

What triggers it: Taking or using water from a Basin water resource, holding or trading a water access right in the Basin, or charging for water services covered by the Water Act's water charge and market rules.

Jurisdiction: Commonwealth law, so the test is the same in every state and territory.

Which industries are in or out

Outcome across the 35 industries Rules Mate maps (2 of 35: only if a further fact applies; 33 of 35: no).

IndustryAnswer
Agriculture, forestry & fishingOnly if a further fact applies
Mining & resourcesOnly if a further fact applies
No33 other industries

Business structure and size

Structure does not change the answer in the 2 industries it can reach: for every structure the answer is "only if a further fact applies".

Size does not change the answer in the 2 industries it can reach: at every size band the answer is "only if a further fact applies".

Worked examples

Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:

  • Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires a trigger outside this questionnaire.
  • Pty Ltd company in agriculture, forestry & fishing with 6–19 employees, turnover $1M–$3M: check whether it applies. applies only if you hold water entitlements or take water.

When you need to check further

The engine shows this obligation as "check whether this applies" when a business has industry: Agriculture, forestry & fishing / Mining & resources. It then applies only if you hold water entitlements or take water. That fact is not something Rules Mate can infer from industry, structure or size.

What you must do, and when

When due
Continuous: water may be taken only within the entitlement, licence conditions and water resource plan rules in force for the catchment; trades follow the Basin Plan trading rules at the time of the trade; metering and take reporting follow the relevant state's requirements.
Frequency
Ongoing
Evidence to keep
Water access entitlements, licences and allocation statements; meter readings and records of water taken; trade and transfer records; evidence that take stayed within licence conditions and the water resource plan rules.
Status
Current
Priority
High

Penalty for not complying

Maximum penalty: Unauthorised take or breach of licence conditions is enforced under state water law, and the Inspector-General of Water Compliance oversees and can inquire into compliance with the Water Act, the Basin Plan and the Murray–Darling Basin Agreement; breaches of water market and water charge rules are enforced by the ACCC.

Criminal liability

Breaches can be prosecuted as criminal offences, not only civil contraventions.

Audit or assurance level

Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.

Where it sits in the corpus

Rules Mate tracks 2 published obligations tagged "water", 0 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated high priority and carries criminal liability, and is an ongoing duty.

Regulator, legislation and tools

Free tools that help with this obligation:

Questions

Who must comply with Water Act 2007 (Cwlth) + state water entitlements?
Applies only if you hold water entitlements or take water. Whether it applies turns on a fact that no industry, structure or size settles on its own.
Do sole traders need to comply with Water Act 2007 (Cwlth) + state water entitlements?
Only if a further fact applies. Looking in the 2 industries it can reach and every size band, the engine's answer for a sole trader is: only if a further fact applies.
Do businesses with 1–5 employees need to comply with Water Act 2007 (Cwlth) + state water entitlements?
Only if a further fact applies (1–5 employees, turnover $100K–$1M).
When is "Comply with Water Act 2007 (Cwlth) + state water entitlements" due?
Continuous: water may be taken only within the entitlement, licence conditions and water resource plan rules in force for the catchment; trades follow the Basin Plan trading rules at the time of the trade; metering and take reporting follow the relevant state's requirements.

Related

Sources

Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.