Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

In relation to the third issue, I will just get some advice. As to your reference to the MIS, the managed investment scheme, I am advised that the test in relation to achieving that taxation treatment was that the person seeking the treatment planted. However, under the CPRS, the credits are based on sequestration. So that is a distinction. Sequestration, I am advised, will be measured by the national carbon accounting model, which will take into account actual rainfall and the implications for actual sequestration.

In relation to the water issues, I thought it would be useful to remind the Senate of what the National Water Initiative references in relation to interception. The parties to that, the states and the Commonwealth, agreed in relation to water interception that ‘in water systems that are overallocated, fully allocated, or approaching full allocation,’ any proposals for additional interception activities above an agreed threshold size will require a water access entitlement. So the intention was that we would be seeking to require conditions under this regime that were consistent with the National Water Initiative.