UDV North

Carryover

Carryover Introduced - 2006:

In 2006, the Victorian Government introduced Carryover for one year as a once-off drought response measure.

The model introduced was heavily criticised by the dairy industry as it seemed to offer little benefit to dairy farmers.

The 2006/07 Carryover Model:

Irrigators could carryover 30% of the volume of their high reliability water shares;
Any carryover above 30% of high reliability water shares would automatically be carried over against low reliability water sharers.
A deduction of 5% of the volume of water carried over was made to account for evaporation losses.
There was no guarantee on the delivery of water carried over.
The volume carried over plus the seasonal allocations could not be more than 100% of water entitlements

Proposed 2007/08 Carryover:

The Department of Sustainability and Environment developed a carryover review paper that was distributed to industry groups and water services committees for comment.

DSE were seeking comment on an amended model that would see farmers being able to carryover water firstly against their low reliability water shares.

The DC supports this amended model which allows farmers to carryover low reliability water shares first. The DC also requested that 50% of low reliability water shares be carried over, rather than 30% proposed by DSE.

For a full copy of DC 3's submission cliick here

Actual 2007/08 Carryover Model - Announced 4th December 2007

Minister for Water, Tim Holding announced 4th December 2007, that carryover would be introduced permanently. Unfortunately, the Government did not support the revised model proposed by DSE and the carryover model will be the same as last year.

For a full copy of the Minister's comments regarding carryover click here.

Carryover Loophole 2008:

A loophole has allowed farmers to carryover low reliability water shares if they have a separate ABA (Allocation Bank Account) number. The creation of an ABA number costs approximately $120.
5% will be deducted from your carryover volume to cover evaporation losses.
From 1 July 2008, you can trade the allocation you have carried over, or purchase allocation someone else has carried over.
Once the irrigation system is operating in your area you can take delivery of your carryover. You don't have to wait for a LRWS allocation in order to access any or all of your carryover.
If during the course of next season the sum of your HRWS carryover (as at 1 July 2008) and 2008/09 HRWS allocation reaches 100% of your HRWS volume, you will not receive any further 2008/09 HRWS allocation. The same principle applies to LRWS carryover.
For example, if you carryover the equivalent of 30% of your HRWS, you will start the 2008/09 season with 28.5% once the 5% evaporation allowance is deducted. Once the 2008/09 HRWS allocation reaches 71.5% you will not receive further allocation improvements for the remainder of the 2008/09 season.

For further information visit G-MW's website

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