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
