Providing transparency over foreign-owned water

A draft report released by the Productivity Commission has found that the Register of foreign‑owned water provides the community with an authoritative source of information on the level and use of foreign water entitlements and should be retained.

The Register of Foreign Ownership of Water Entitlements (the Register) was established in 2017 to provide transparency. The Register requires foreign persons to notify the Australian Taxation Office if they purchase water assets or if there are changes to their foreign status or water entitlement holdings.

The Productivity Commission is required to evaluate the effectiveness of the Register under section 34A of the Register of Foreign Ownership of Water or Agricultural Land Act 2015 (Cth).

Foreign investment plays an important role in Australia’s economy but a sizeable share of the community feels some unease towards it, including foreign investment in water entitlements. While the Register has a narrow function, it provides transparency and helps in dispelling myths and misinformation.

The Register cannot, and is not intended to, respond to broader concerns with water markets, such as price manipulation and anti-competitive conduct. Such problems should be dealt with through competition or water market policies.

The Commission has identified a number of small changes that would further improve the Register’s performance. The tweaks recommended by the Commission would make information in the report more accessible for the community and increase awareness of the Register.

The Productivity Commission’s report on the Register of Foreign-owned Water Entitlements can be found at www.pc.gov.au

Media requests

02 6240 3330 / media@pc.gov.au

• Preliminaries: Cover, Copyright, Opportunity for further comment, Terms of reference, Contents and Abbreviations
• Overview
  • Key points
  • 1 The Register
  • 2 The inquiry’s focus
  • 3 The Register is a resource for fact checking
  • 4 Pre-empting a problem
  • 5 The Register cannot address all concerns …
  • 6 … but its design is appropriate for its narrow use
  • 7 Costs associated with the Register are low
  • 8 There are no better alternatives
  • 9 Can the Register be improved?
• Draft findings and recommendations
• Chapter 1 About the inquiry
• Chapter 2 Setting the scene
  • 2.1 How the Register of Foreign Ownership of Water Entitlements operates
  • 2.2 What does the Register show about foreign ownership of water in Australia?
  • 2.3 Australia’s foreign investment policy landscape
  • 2.4 Key features of Australian water markets
• Chapter 3 Rationales for the Register
  • 3.1 What is the purpose of the Register?
  • 3.2 How does the community feel about foreign investment in water?
  • 3.3 Maintaining public confidence in foreign investment in water markets
  • 3.4 The Register cannot address all concerns
  • 3.5 Information for policymakers
• Chapter 4 How is the Register performing?
  • 4.1 Filling an information gap
  • 4.2 Access to Register information
  • 4.3 Clarity and timeliness of the statistical reports
  • 4.4 Register administration and compliance
  • 4.5 Regulatory compliance burdens
• Chapter 5 Reconsidering the Register
  • 5.1 Is a Register still needed?
  • 5.2 Are there better alternatives?
  • 5.3 Can the Register be improved?
• Appendix A Consultation
• References