Federal government considers more water buybacks to meet Murray-Darling Basin Plan shortfall

The federal government has not ruled out using more water buybacks to make up a shortfall in a key Murray-Darling Basin Plan water-saving target.

A draft report released last week by the Murray-Darling Basin Authority (MDBA) forecasts environmental water recovery through state-run projects will fall short by 265 gigalitres a year.

Federal Environment and Water Minister Murray Watt said environmental flows had to come from somewhere.

"We won't have long-term sustainable industries and communities in the basin if we don't have a sustainable river system," he said.

Goulburn Murray irrigation community leader Suzanna Sheed said the possibility of more buybacks was devastating.

"We've seen the hollowing out of many of our smaller towns and communities," she said.

"The impacts of on communities just can't be disregarded."

The Basin Plan Sustainable Diversion Limit Adjustment Mechanism (SDLAM) was amended by the Turnbull government in 2017 to avoid 605GL worth of buybacks via through a range of state-run environmental water projects.

The MDBA warned in 2022 that the works would not be completed on time and a two-year extension was granted.

The authority's latest draft report into the SDLAM shows 17 of 39 water-saving projects have been shelved or will not be finished by this year's December 31 deadline.

Savings are set to reach 340GL by the end of the year, leaving the 265GL shortfall.

More water buybacks an option

Senator Watt said the government had a "legislated obligation to deliver" on the water-saving targets set out in the basin plan.

"Because they are what science has told us is essential to preserve the environmental health of the basin," he said.

The exact SDLAM shortfall figure will not be known until the end of the year and Senator Watt said the government would decide what to do after that.

"We can't ignore it," he said.

"There's a range of options available to us and we'll need to work through those in parallel with the states and territories and communities in the months ahead."

But Senator Watt refused to rule out additional voluntary water buybacks, which have been very unpopular in basin communities.

The government has already spent $1.6 billion on 279.6GL worth of voluntary water buybacks under a separate environmental program.

Ms Sheed said buybacks had a massive impact on food security and regional economies.

"It is quite frankly devastating to think that the minister would come back in and buy back more water than he already is," she said.

Ms Sheed pointed to the closure of the Strathmerton Bega cheese factory in northern Victoria, as well as job cuts at the SunRice mill in Deniliquin in southern New South Wales.

"We have more food manufacturing factories in our [Goulburn Murray] region than anywhere else in regional Australia and that's value-adding to food we produce," she said.

National Irrigators' Council chief executive Zara Loewin said a more constructive approach was needed.

"We need to put the politics and past policy behind and actually just look at what the environment needs going forward," she said.

"The evidence is suggesting more water is not the answer."

Consultation on the SDLAM draft report is open until the start of November, with the final determination expected to be made by the end of the year.