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Murray-Darling Basin Irrigation Management Grant

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Murray-Darling Basin Irrigation Management Grant

The Murray-Darling Basin Management Grant enables eligible farm enterprises in the Murray-Darling Basin (MDB) or those who draw water solely from the MDB, to access funds to implement water management strategies. These strategies will contribute to the farm plan for managing short-term reduced water allocations. The grant of up to $20,000 forms part of the income for the irrigation enterprise. Customers should retain a copy of the grant advice for taxation purposes. Consult your taxation advisor if necessary.

Qualifying for the Murray-Darling Basin Irrigation Management Grant

To be eligible for the grant you must:

  • be at least 18 years old and living in Australia
  • have a right or interest in the land used for the purposes of a farm enterprise, contribute a significant part of your labour and capital to the farm enterprise and derive a significant part of your income from the farm enterprise *
  • meet an off-farm asset test
  • have been a farmer for two years prior to lodging your application
  • have a current Australian Business Number (ABN)
  • have identified the activities for managing reduced water allocations
  • be an irrigator, that is, you either:
    • hold an active license for irrigation entitlement
    • demonstrate you have derived income from irrigation activities within the three years prior to the date of application
    • demonstrate you would have derived an income from irrigation activities if water allocations were not significantly reduced, or
    • demonstrate you have incurred expenses for irrigation activities within the three years prior to the date of application.

* deriving significant income form the farm enterprise can be met if you can demonstrate you would have derived an income from irrigation activities if water allocations were not significantly reduced.

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Murray-Darling Basin Irrigation Management Grant income and assets test

The Murray-Darling Basin Irrigation Management Grant is not income tested. The off-farm asset test is the same as for Exceptional Circumstances Interest Rate Subsidy at the time of application. This means that if you are applying between 25 September 2007 and 30 June 2009, the total off-farm assets of all the members of the farm enterprise must not exceed $750,000. Assets essential to the running of the farm enterprise are exempt.

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Eligible activities I can spend the Irrigation Management Grant on

The grant is available to assist irrigators undertake a range of eligible activities that improve on-farm practices with reduced water allocations.

Eligible activities include:

  • piping, troughs and associated activities for stock and domestic water
  • fixed water charges
  • sinking, extending or refurbishment of bores (and pumps)
  • pruning activities to minimise the impact of low water allocations
  • reconfiguring irrigation systems
  • equipment replacement to maintain irrigation systems (including computer software, piping and pumps)
  • costs associated with implementing water efficient crop options
  • laser levelling.

Examples of activities that are not eligible include:

  • the purchase or leasing of vehicles
  • purchasing water or fodder
  • re-financing existing loans
  • accounting fees, and
  • purchase or service of assets not directly involved in the operation of the farm enterprise.

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Key dates associated with the Murray-Darling Basin Management Grant

The grant will be payable for eligible activities undertaken between 1 July 2007 and 30 June 2009. Applications must be lodged by 31 March 2009 and the grant must be spent by 30 June 2009.

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More information

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