If you are a foreign person (including foreign owned companies and trusts) that acquired a registerable water interest in the financial year ending 30 June 2025, and if you continued to hold the registerable water interest as at 30 June 2025, you must notify the Australian Taxation Office (ATO) by 30 July 2025.
The details
A registrable water interest means a:
- ‘registrable water entitlement’ such as irrigation rights water access licences, but does not include certain water access rights such as stock or domestic rights, riparian rights or annual water allocations; or
- ‘contractual water right’ exceeding five years.
This annual notification requirement is unique to water interests. Foreign persons who have acquired other, non-water asset categories are required to notify the ATO of any relevant action within 30 days of the action taking place (for a more in-depth look at the requirements for other asset categories, see our publication: Foreign ownership of assets register – annual notification of water rights).
For registerable water interests you will need to update the Register of Foreign Ownership of Australian Assets if, in a given financial year:
- you acquire a registerable water interest, and continue to hold it at 30 June;
- you cease to hold a registerable water interest;
- whilst holding a registerable water interest, you become a foreign person, or cease to be a foreign person; or
- you hold an already registered water interest, and the volume of water or the share of a water resource referred to in the registrable water interest changes.
How can we assist?
Although the registration process for foreign-owned assets is reasonably straightforward, difficulty can arise in identifying which interests need to be registered because of the complex nature of Australia’s foreign investment legislation. Our FIRB team is able to assist you in identifying any registrable water (or other) interests and managing your ongoing compliance requirements.
Consequences for non-compliance
A foreign person who fails to notify the ATO in accordance with the notification requirements may be liable to pay an administrative penalty in respect of each interest that they hold or cease to hold. FIRB may also look unfavourably on foreign persons who have not complied with the Australia’s foreign investment laws when considering future applications for FIRB approval.
