If you intend to apply for the permanent trade of a licence to take and use unregulated surface water please ensure you read the information below and refer to the trading rules.
For more information contact the Licensing Unit Phone: 1800 013 357 Email: licensingadmin@gmwater.com.au
What is the permanent transfer of a licence?
Permanent transfer of a licence (or permanent trade) involves the requested licence volume (ML) moving from the sellers licence to the buyers licence permanently.
What are the benefits to buyers and sellers?
Permanent transfers provide existing licence holders with the opportunity to maximise the value of their licence by selling either the whole licence or a portion of the licence if they do not intend to use the full volume of water entitlement in the future. Permanent transfer provides other water users with the ability to purchase water entitlements in areas where new entitlement is not available.
How do I find out if my licence can be transferred?
A Licence to Take and Use Water is issued within a particular trading zone which relates to the source of the water. Identifying the trading zone for the licence is the first step in determining where a licence can be traded to or from. There are a number of other considerations that must be taken into account before G-MW can approve an application for a permanent transfer. Trading rules are specified in the Policies for Managing Take and Use Licences (the Policies) issued by the Minister for Water, and also specified in local management rules and management plans. The Policies and information about the trading rules and zones can be downloaded from the GMW website. If you intend to apply to transfer a licence on a permanent basis you should download the Application for Permanent Transfer of a Licence to Take and Use Surfacewater, which contains specific information about the requirements for transfer. If you cannot access the internet please contact the Licensing Unit to request a copy by email, mail or fax.
What volume of water is available to the buyer when a permanent transfer is approved?
If an application to transfer is approved, the buyer’s licence will increase by the volume transferred from the seller, minus any reduction applied to the transfer. The use of the transferred volume will be subject to the same restrictions as the buyers existing licence.
What general rules apply?
The following general rules apply, however you should check the specific rules for your licence/ area before proceeding to make arrangements for a transfer.
- The permanent transfer of a licence is not permitted to or from a Farm Dam Registration Licence. Prior to a trade being permitted the Registration Licence holder must request that G-MW convert their licence to a standard licence.
- There is no charge to convert the licence from a registration to a standard licence, however a standard licence is subject to annual fees and you will be required to install a meter.
- If a licence has been issued with a winter-fill condition, it cannot be transferred to a licence which has been issued as an all-year licence.
- Water cannot be used under the licence by the buyer until the transfer has been approved and G-MW has notified all parties in writing.
- The permanent transfer of an all-year licence is permitted upstream however the transferee will be issued with a winter-fill licence.
How does G-MW assess the application?
Approval of an application is subject to an assessment against the sustainable diversion limit for the relevant sub-catchment. If your licence is in a sub catchment which is fully committed you will only be allowed to transfer within your sub-catchment. Additional rules may apply to an individual catchment as a result of a management plan established under a Water Supply Protection Area. Water Supply Protection Areas are declared to protect the water resources of surface water catchments, groundwater aquifers or both and aim to provide a balanced and sustainable sharing of stream flows between all water users in unregulated systems. Any new licence issued by G-MW requires that the extraction of water is metered.
What is a Winter-fill Licence?
A winter-fill Licence contains specific conditions relating to the period in which water can be taken from the source and diverted to a water storage (dam etc). Water can only be diverted to an on-stream or offstream storage during the Winter-fill period, which is between 1 July and 31 October each year. At all other times the entire stream flow must be passed downstream of the licensee’s storage.
Where can I get more information about trading opportunities and current prices in my area?
You should contact the Licensing Unit at G-MW to confirm the trading rules applicable to your licence prior to proceeding to agreeing to purchase or sell a licence. G-MW cannot provide you with information on the current market value of water. If you decide to proceed with an application, information about market activity and pricing can be obtained from your local water broker. Details of brokers in your area can be located in the Yellow Pages or through advertisements in your local newspaper.
Are there any special requirements I need to fulfill before I lodge the transfer application?
There are a number of application requirements which must be met before G-MW can consider an application for a permanent transfer. Application requirements include advertising your proposal to transfer a licence in the local newspaper and notifying your neighbours. You should download a copy of the application form available from the GMW website to check these requirements before proceeding with an application.
If I am purchasing a licence volume and I do not currently hold a licence do I need to apply separately?
Yes, before your trade can be approved you will need to apply for a Licence to Take and Use Water. This application will be assessed and a site inspection will be undertaken to review the existing or proposed pump site. If this application is approved you will be issued with a licence to Take and use Water which will contain a number of licence conditions relating to the take and use of water. Are there ongoing costs associated with having a Licence? Yes, a Licence to Take and Use Water is subject to annual fixed charges, issued by G-MW in July each year. For specific details about which charges will apply to your licence, please contact the Licensing Unit.