Environmental contributions

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.

Tranche 5

The fifth tranche of the environmental contribution (EC5) began 1 July 2020, and is expected to raise $693.9 million over four years to fund continued delivery of the Government’s long term water plan, Water for Victoria.

Read the EC5 initiative progress reports.

Tranche 4

The fourth tranche of the environmental contribution (EC4) commenced on 1 July 2016 and concluded on 30 June 2020, investing $537.1 million into delivery of actions under Water for Victoria.

An end-of-tranche evaluation report, along with expenditure information and progress reports on all initiatives funded by EC4 are available at EC4 reporting and evaluation.

Further information and case studies on funding outcomes are also available in the Delivering Water for Victoria Progress Report.

Tranche 3

The third tranche of the Environmental Contribution (EC3) was established in June 2012 and ceased on 30 June 2016, generating $405.3 million.

Expenditure information and progress reports on all initiatives funded by EC3 is available at EC3 reporting.

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.