Environmental contributions are funds collected from water supply authorities under the Water Industry Act 1994 (the Act). Under a 2004 amendment to the Act, environmental contributions are collected to fund initiatives that seek to promote the sustainable management of water or address adverse water-related environmental impacts.
The Environmental Contribution is one of the most important funding tools assisting Victorians to manage water sustainably, and a means of accounting for the environmental costs associated with the provision of water-based services.
Funding of sustainable water resource management activities through the Environmental Contribution ensures the costs of water-related environmental activities are recovered from water users.
The Victorian Government has committed to a fourth round (or 'tranche') of the Environmental Contribution. The four-year tranche commenced on 1 July, 2016 and is expected to raise $537.1 million to fund delivery of the Government’s long term water plan, Water for Victoria.
Expenditure information on initiatives funded by the current tranche of the environmental contribution in 2016-17 is available here. Detailed progress updates on initiatives will be made available in late 2017, with publication of the Water for Victoria progress report.
The third tranche of the Environmental Contribution (EC3) was established in June 2012 and ceased on 30 June, 2016, generating $405.3 million.
While collection of funds for EC3 has ceased, a number of projects will continue to be delivered until 2018-19. This includes new infrastructure projects announced in the 2016-17 state budget as well as the completion of a number of existing projects.
Tranches 1 and 2
The first tranche of the Environmental Contribution commenced in July 2004 and collected a total of $226.5 million for the four-year period from 2004-05 to 2007-08. The second tranche of the Environmental Contribution collected a total of $277.6 million from 2008-09 to 2011-12.
Detailed information on the outcomes and achievements of initiatives funded by the first two tranches of the Environmental Contribution (and the first half of the third tranche) is provided in the 10-year evaluation report.
10 Year Evaluation
An evaluation of the first 10 years of the Environmental Contribution was completed in October 2015.