{"id":"F2019L01038","name":"Competition and Consumer (Price Inquiry—Water Markets in the Murray-Darling Basin) Direction 2019","slug":"competition-and-consumer-price-inquiry-water-markets-in-the-murray-darling-basin-direction-2019","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":99627,"registerId":"commonwealth-F2019L01038-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n  This instrument is the Competition and Consumer (Price Inquiry—Water Markets in the Murray‑Darling Basin) Direction 2019.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under the Competition and Consumer Act 2010.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\nNote: Expressions have the same meaning in this instrument as in the Competition and Consumer Act 2010 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n  In this instrument:\n\n> carryover arrangement has the meaning given by subsection 1.07(1) of the Basin Plan 2012.\n\n> exempt supply has the meaning given by subsection 95A(1) of the Act.\n\n> goods has the meaning given by subsection 95A(1) of the Act.\n\n> infrastructure service has the meaning given by subsections 12.47(5A) of the Basin Plan 2012.\n\n> inquiry has the meaning given by subsection 95A(1) of the Act.\n\n> intervalley transfer has the meaning given by subclause 3(1) of Schedule D to the Murray-Darling Basin Agreement.\n\n> Murray-Darling Basin has the meaning given by the Water Act 2007.\n\n> Murray-Darling Basin Agreement has the meaning given by Part 1A of the Water Act 2007.\n\n> Note: The text of the Murray-Darling Basin Agreement is set out in Schedule 1 to the Water Act 2007.\n\n> services has the meaning given by subsection 95A(1) of the Act.\n\n> supply has the meaning given by subsection 95A(1) of the Act.\n\n> the Act means the Competition and Consumer Act 2010.\n\n> trade has the meaning given by subsection 1.07(2) and (3) of the Basin Plan 2012.\n\n> tradeable water rights has the meaning given by the Water Act 2007.\n\n> water market intermediary has the meaning given by subsection 1.07(1) of the Basin Plan 2012.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Price inquiry into water markets in the Murray‑Darling Basin","content":"## Part 2—Price inquiry into water markets in the Murray‑Darling Basin","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Commission to hold an inquiry into water markets in the Murray-Darling Basin","content":"#### 5 Commission to hold an inquiry into water markets in the Murray\\-Darling Basin\n\n  (1) Under subsection 95H(1) of the Act, the Commission is required to hold an inquiry into markets for tradeable water rights relating to water in the Murray‑Darling Basin. The inquiry does not extend to any of the following:\n    (a) seeking to identify the social and economic impact of water trading on communities in the Murray\\-Darling Basin;\n    (b) considering the effectiveness of water buy-backs for environmental purposes;\n    (c) the supply of a good or service that is an exempt supply.\n\n> Note: The matters referred to in paragraphs (a) and (b) fall within the scope of other inquiries.\n\n  (2) Under subsection 95J(1), the inquiry is to be held in relation to goods and services of the following description:\n    (a) tradeable water rights; and\n    (b) services facilitating the trade of tradeable water rights, including those offered by water market intermediaries; and\n    (c) infrastructure services in relation to tradeable water rights.\n  (3) Under subsection 95J(2), the inquiry is not to be held in relation to the supply of goods and services by a particular person or persons.","sortOrder":5},{"sectionNumber":"6","sectionType":"section","heading":"Directions on matters to be taken into consideration in the inquiry","content":"#### 6 Directions on matters to be taken into consideration in the inquiry\n\n  Under subsection 95J(6) of the Act, the Commission is directed to take into consideration the following matters in holding the inquiry:\n    (a) market trends since 2012, including demand for water, changes in the location where water is used, the quantity of water traded, water availability, changes in water users and their communities, development of new trading products, and the number of participants and sectors participating in the water markets;\n    (b) the role of carryover arrangements, and the trading of water allocations which have been carried over, on water markets;\n    (c) the role and practices of market participants, including water brokers, water exchanges, investment funds and significant traders of water allocations and entitlements;\n    (d) the availability to the public of information on water market activities and tradeable water right holdings;\n    (e) the timeliness, accuracy, and completeness of public information released on water market activities and tradeable water right holdings, including true trade price reporting and the types of trade (for example, immediate purchases, forward contracts, leases);\n    (f) barriers to entry, expansion and exit, including transaction costs;\n    (g) the management of constraints on the storage or delivery of water, including adjustments made to give effect to trades and intervalley transfers.","sortOrder":6},{"sectionNumber":"7","sectionType":"section","heading":"Directions as to holding of the inquiry","content":"#### 7 Directions as to holding of the inquiry\n\n  (1) Under subsection 95J(6) of the Act, the Commission is directed to do the following in holding the inquiry:\n    (a) seek and consider the views of participants involved in water markets and other persons directly involved in water markets;\n    (b) recommend options to enhance markets for tradeable water rights relating to water in the Murray‑Darling Basin, including options to enhance the markets’ operations, transparency, regulation, competitiveness and efficiency;\n    (c) give to the Treasurer an interim report on the inquiry by 30 June 2020.\n\n> Note: Example: Participants involved in water markets, and other persons directly involved in water markets, include irrigation farmers, investors, water brokers, water exchanges, water registries and other service providers facilitating the trading of water, environmental water holders, urban water authorities, other infrastructure operators, and market advisors and analysts.\n\n  (2) Under subsection 95P(3) of the Act, the Commission is directed not to make available for public inspection, copies of any interim report until the Treasurer, in writing, authorises the Commission to do so.","sortOrder":7},{"sectionNumber":"8","sectionType":"section","heading":"Period for completing the inquiry","content":"#### 8 Period for completing the inquiry\n\n  Under subsection 95K(1) of the Act, the inquiry is to be completed, and a report on the matter of inquiry given to the Treasurer, by 26 February 2021.","sortOrder":8}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"The Direction narrows and focuses the statutory inquiry power by excluding social/economic community impact assessments and buy‑backs and by specifying a confined set of market and operational issues to examine, imposing consultation and reporting requirements (including non‑publication of the interim report until authorised) and a firm deadline. This shifts scope from a potentially broader inquiry under the Act to a targeted market‑structure, transparency and operational review (see s5(1), s6, s7 and s8)."},"complexity_factors":["Multiple cross-references to other instruments (Competition and Consumer Act 2010; Basin Plan 2012; Water Act 2007; Murray‑Darling Basin Agreement; Legislation Act 2003) which import definitions and concepts","Narrowed scope through explicit exclusions (social/economic community impacts; buy‑backs; exempt supplies) which require interpretive work (s5(1))","Detailed list of directed matters to consider (market trends, carryover, participant roles, information quality, barriers, constraints) that span technical, economic and operational topics (s6)","Procedural obligations: stakeholder consultation, recommendations on market improvements, interim report deadline and confidentiality restriction pending Treasurer’s authorisation (s7)","Fixed completion deadline for the inquiry creating time constraint on evidence‑gathering and analysis (s8)","Prohibition on examining supply by particular persons limits investigative breadth and focuses on market‑level issues (s5(3))"],"plain_english_summary":"This Direction requires the Commission to run a time-limited price inquiry into markets for tradeable water rights in the Murray‑Darling Basin, setting what to study, who to consult, reporting dates and confidentiality rules for the interim report. The inquiry targets market operations — participants, trading services, infrastructure constraints and information transparency — and therefore directly affects irrigators, brokers, exchanges, investors, infrastructure operators, environmental and urban water holders because findings may prompt regulatory or market responses that change costs, reporting and trading practices."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This is a specific, time-bound ministerial direction for a single inquiry. It has not grown beyond its original purpose; it was always intended to be a targeted investigation into water market functioning with explicitly carved-out exclusions (social impacts, environmental buy-backs). The scope remains tightly constrained to market mechanics, transparency, and competition issues."},"complexity_factors":["Short instrument: only 8 sections across 2 Parts","Heavy reliance on external definitions: 12 defined terms, most referencing other legislation (Competition and Consumer Act 2010, Water Act 2007, Basin Plan 2012, Murray-Darling Basin Agreement)","Simple conditional structure: primarily exclusions and directions rather than nested logic","No exceptions to exceptions or complex procedural rules","Clear directive format: most sections simply state what the Commission 'is directed' or 'is required' to do","Limited cross-referencing within the instrument itself—most references are to external statutes"],"plain_english_summary":"The government has directed the ACCC to conduct a formal market study into water trading in the Murray–Darling Basin, examining tradeable water rights, the services and infrastructure that enable trading, and market conduct and transparency. Certain social, environmental buy-back and individual-focused matters are excluded.\n\nThis affects irrigators, brokers, exchanges, investment funds, environmental water holders and infrastructure operators. The inquiry aims to address concerns about transparency, pricing and fairness in a multi‑billion dollar market and could prompt regulatory reform."}},"importantCases":[],"_links":{"self":"/api/acts/competition-and-consumer-price-inquiry-water-markets-in-the-murray-darling-basin-direction-2019","history":"/api/acts/competition-and-consumer-price-inquiry-water-markets-in-the-murray-darling-basin-direction-2019/history","analysis":"/api/acts/competition-and-consumer-price-inquiry-water-markets-in-the-murray-darling-basin-direction-2019/analysis","conflicts":"/api/acts/competition-and-consumer-price-inquiry-water-markets-in-the-murray-darling-basin-direction-2019/conflicts","importantCases":"/api/acts/competition-and-consumer-price-inquiry-water-markets-in-the-murray-darling-basin-direction-2019/important-cases","documents":"/api/acts/competition-and-consumer-price-inquiry-water-markets-in-the-murray-darling-basin-direction-2019/documents"}}