Skip to content

  • Home
  • Expertise
  • Client results
  • News & Insights
  • People
  • Our DNA
  • Inclusion and Diversity
  • Join us
  • Contact Us
Home / NEWS & INSIGHTS / Insight / Don’t Delay – FIRB Water Register update
Insight 5 July 2021

Don’t Delay – FIRB Water Register update

End of Financial Year FIRB Water Rights update

Unlike the Foreign Investment Review Board (FIRB) agricultural land register – which needs to be updated constantly, the FIRB water rights register only needs to be updated annually. And, it’s that time of year again.

Under the Register of Foreign Ownership of Water or Agricultural Land Act 2015 (Cth) (Land and Water Registration Act), foreign persons with interests in registrable water entitlements or contractual water rights in Australia, are required to notify the Australian Taxation Office (ATO) about any changes to these interests on an annual basis and within 30 days of the end of each financial year.

More so than in previous years, compliance in the foreign investment space has been a key consideration and driver for FIRB. Amendments to the Foreign Acquisitions and Takeovers Act 1975 (Cth) brought in at the start of 2021, demonstrate this by granting significantly greater penalty and investigation powers to FIRB. This coupled with a Federal Government’s focus on water and water theft means an up to date water register will be a high priority for FIRB.

Registrable water entitlements and contractual water rights

The terms ‘registrable water entitlement’ and ‘contractual water rights’ are defined in the Land and Water Registration Act.  These definitions are very broad and rely on state based legislation. As such, most transactions involving agricultural land or a mining project include registrable water entitlements in one way or another (including by way of contractual water rights).

What you need to do?

The annual review process requires a review by foreign persons of their interests in registrable water entitlements and contractual water rights to identify any changes that require notification to the ATO. 

If you are a foreign person who:

(i)           starts or ceases to hold a registrable water entitlement or contractual water right;

(ii)          becomes or ceases to be a foreign person while holding a registrable water entitlement or contractual water right; or

(iii)         holds an existing water entitlement or contractual water right and there has been a change in characteristic of the water entitlement or contractual water right (e.g. a change to the volume of water, or the share of the water resource),

then you are required to notify the ATO of the change(s) before 30 July 2021.

Foreign persons who fail to notify the ATO or do not give notice on time may be liable to pay an administrative penalty in respect of each interest that they hold, or cease to hold, in a registrable water entitlement or contractual water right. In addition, as with any breach of the foreign investment regime, non-compliance can be a negative consideration for future applications for FIRB approval.

The federal and state governments have increased their information sharing capabilities in recent years and we expect to continue to see the ATO undertake audit activities that will identify non-compliance.

How can McCullough Robertson help?

While the registration process itself is fairly straight forward, the process of identifying which interests need to be registered can be complex, as the relevant Acts, regulations and rules provide a number of carve outs. Our FIRB team is able to assist you in identifying any registerable water rights, and manage your ongoing compliance requirements.

This publication covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. It is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.

About the authors

  • Duncan Bedford

    Partner
  • Emma Murray

    Special Counsel
  • Andrew Bukowski

    Senior Associate
  • Meg Morgan

    Senior Associate

In other news

2022-23 Queensland Budget

24 June 2022Insight

2022 EOFY trust distributions: handle with care

22 June 2022Insight

QBCC head contractor licensing exemption confirmed as remaining in force

22 June 2022Insight

NSW significantly expands scope of stamp duty regime

14 June 2022Insight

VIEW ALL NEWS & INSIGHTS

BRISBANE

Level 11, 66 Eagle Street
Brisbane QLD 4000
GPO Box 1855
Brisbane QLD 4001
Tel +61 7 3233 8888
Fax +61 7 3229 9949

 

GET IN TOUCH

    Contact form

    We handle your personal information in accordance with our privacy policy.

    Please do not send us any confidential information. By submitting this form, you agree that our review of the information you submit will not create a lawyer-client relationship between you and our firm (or any lawyer in our firm) and it will not prevent us from representing a party in any matter where the information you submit is relevant, even if that information could be used against you.

    sydney

    Level 32, MLC Centre
    19 Martin Place
    Sydney NSW 2000
    GPO Box 462
    Sydney NSW 2001

    Tel +61 2 8241 5600
    Fax +61 2 8241 5699

     

    GET IN TOUCH

      Contact form


      We handle your personal information in accordance with our privacy policy.

      Please do not send us any confidential information. By submitting this form, you agree that our review of the information you submit will not create a lawyer-client relationship between you and our firm (or any lawyer in our firm) and it will not prevent us from representing a party in any matter where the information you submit is relevant, even if that information could be used against you.

      melbourne

      Level 27, 101 Collins Street
      Melbourne VIC 3000
      GPO Box 2924
      Melbourne VIC 3001

      Tel +61 3 9067 3100
      Fax +61 3 9067 3199

       

      GET IN TOUCH

        Contact form

        We handle your personal information in accordance with our privacy policy.

        Please do not send us any confidential information. By submitting this form, you agree that our review of the information you submit will not create a lawyer-client relationship between you and our firm (or any lawyer in our firm) and it will not prevent us from representing a party in any matter where the information you submit is relevant, even if that information could be used against you.

        follow us

        CLIENT LOGIN

        newcastle

        92 Young Street
        Carrington NSW 2294
        PO Box 394
        Newcastle NSW 2300

        Tel +61 2 4914 6900
        Fax +61 2 4914 6999

         

        GET IN TOUCH

          Contact form


          We handle your personal information in accordance with our privacy policy.

          Please do not send us any confidential information. By submitting this form, you agree that our review of the information you submit will not create a lawyer-client relationship between you and our firm (or any lawyer in our firm) and it will not prevent us from representing a party in any matter where the information you submit is relevant, even if that information could be used against you.

          canberra

          Level 9, 2 Phillip Law Street
          Canberra ACT 2601

          Tel +61 2 6243 3669
          Fax +61 2 8241 5699

           

          GET IN TOUCH

            Contact form


            We handle your personal information in accordance with our privacy policy.

            Please do not send us any confidential information. By submitting this form, you agree that our review of the information you submit will not create a lawyer-client relationship between you and our firm (or any lawyer in our firm) and it will not prevent us from representing a party in any matter where the information you submit is relevant, even if that information could be used against you.

            © 2017 McCullough Robertson. Site map Disclaimer Privacy Policy Statement of Business Ethics Credit Reporting Policy

            X