Terms of reference

Background

The Inspector-General of Water Compliance was established by amendments to the Water Act 2007, which came into force on 5 August 2021.

The role of the Inspector-General is to improve trust and transparency in implementing the Basin Plan through monitoring and providing independent oversight.

The Inspector-General’s functions and powers are detailed in the Water Act 2007 and can be summarised as:

(a)    enforcing compliance with the Water Act 2007, the Basin Plan and water resource plans

(b)    monitoring and independent oversight of Commonwealth and Basin State agencies performance of obligations in the Basin

(c)     engaging with Basin communities on the management of Basin water resources.

The Inspector-General does this by:

  • investigating and enforcing non-compliance with sustainable diversion limits and assurance of Basin state compliance and enforcement frameworks, through audits and investigations

  • supporting the development and implementation of standards and methods to improve the accuracy of water measurement to increase the transparency of water take across the Basin

  • enforcing compliance with the Basin Plan water trading rules

  • monitoring and reporting on the requirements of the Basin Plan and water resource plans related to the protection of planned environmental water.

The Inspector-General is supported by the Office of Water Compliance within the Department of Climate Change, Energy, the Environment and Water.

The effectiveness of water compliance across the Murray–Darling Basin, including the Inspector-General’s ability to monitor and act, is critical to the long-term future of the Murray-Darling Basin and its ongoing sustainability as a vital resource for all Australians.

Basin States and the Inspector-General were consulted on the terms of reference.

Objective

The Australian Government is undertaking an independent review to ensure the Inspector-General:

  1. has relevant powers needed to carry out its functions; and

  2. the structure and governance of the Inspector-General Water Compliance is otherwise appropriate, given the scope of its powers in relation to institutions of state.

Scope

The review will:

A.      consider whether:

  1. the functions and powers of the Inspector-General are effective to enforce
    compliance with the Water Act 2007, the Basin Plan and water resource plans without unnecessary duplication of effort; and

  2. current arrangements are effective in ensuring the independence of the
    Inspector-General. 

B.      assess the Inspector-General’s regulatory maturity using the Modern Regulator Improvement Tool developed by the Australasian Environmental Law Enforcement and Regulators network.

C.    advise on:

  1. options to improve the functions, powers and independence of the Inspector-General if current arrangements are not effective; and

  2. any other options to improve regulatory maturity.

Consultation

The reviewer will consult relevant agencies and stakeholders in undertaking the review.

Administrative support

The Department of Climate Change, Energy, the Environment and Water will provide a small taskforce to support the work of the independent review.

Reporting timeframe

The reviewer will provide an interim report in October 2023, followed by a final report no later than January 2024, or as otherwise agreed.

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