The Murray-Darling Basin Authority (MDBA) has today released its draft determination of the Sustainable Diversion Limit Adjustment Mechanism (SDLAM).
SDLAM is a Basin Plan mechanism designed by the former Coalition Government in 2017 to keep more water available for communities and irrigation, limiting the need for further voluntary water buybacks, in exchange for Basin states delivering projects that achieved similar environmental outcomes.
It allowed more water (605GL per year) to remain available for human, agricultural and industrial consumption, on the agreement that water saving projects would be delivered by the New South Wales, Victorian and South Australian governments, using Commonwealth funding.
When the Albanese Government was elected in 2022, and following a decade of Federal Coalition neglect of the Murray-Darling Basin, the States’ delivery of these projects was well behind schedule, so we passed legislation providing more time for States to deliver them.
Despite this, in June 2026, the Basin Officials Committee notified the MDBA that 14 measures in NSW and Victoria would not be in operation by the 31 December 2026 deadline and were withdrawn. The MDBA has announced today that this is likely to result in a 265 gigalitre per year shortfall in the 605 gigalitre per year requirement.
Almost a decade on from when these projects were first proposed, and after the Albanese Government’s decision to provide more time to deliver them, it is extremely disappointing that these projects have not been delivered, as promised. In particular, because these projects were designed to return more water to the environment and limit the need for further voluntary buybacks.
The likely SDLAM shortfall does not diminish our Government’s commitment to work with state governments, industry and local communities to get the balance right between protecting the environment, growing the agricultural sector and supporting Basin communities.
The MDBA is now seeking public feedback on the draft determination and SDL adjustments.
I look forward to receiving the Authority’s final determination report later this year.
