Reporting business rules
These business rules have been developed to guide the preparation of the permanent water trading reports; in particular the calculation of the weighted average price information presented in the reports. Application of these business rules enables the Department of Regional Development, Manufacturing and Water to provide the Queensland water market with reliable, consistent aggregate information on water trading activity in the state.
All transfers listed in the permanent water trading reports relate to transfers of legal and beneficial ownership registered on the Water Allocations Register (WAR) during the reporting period. There are separate reports for supplemented and unsupplemented water allocation transfers. Each report includes 2 distinct tables:
Reports are prepared monthly commencing in July each financial year. Monthly reports are then replaced with an annual report at the end of the financial year.
Data is sourced from the Automated Titles System (ATS) via the department's Water Management System. All figures presented in the reports are rounded up or down to the nearest whole number.
Note the terms 'transfer' and 'trade' are interchangeable.
Transfer of ownership - water only
This table is for transactions involving the transfer of water allocations only - not land.
Water allocation transfers are identified by water plan area and then by water supply scheme (supplemented water) or water management area (unsupplemented water) within the particular water plan area.
Supplemented water trades are further grouped according to their priority status (e.g. High or Medium). Unsupplemented water trades are grouped according to their particular part of the ROP area (e.g. LB1, LB2).
These tables present the number of water allocations transferred and the associated volume of water transferred during the reporting period.
The number of transfers refers to the number of water allocation-only transfers registered on the WAR during the reporting period. This means all transfers, including transfers:
- where there was no monetary consideration, such as 'gifts of natural love and affection'
- for nominal consideration (such as for $1)
- for unusually high consideration.
The volume of transfers refers to the total nominal volume of water allocation-only transfers registered on the WAR during the reporting period. This means the total volume of all transfers, as above. It includes the total volume of all water allocations irrespective of the number of allocations transferred in a transaction or the consideration or the type of transfer.
Separate totals of the numbers of transfers and total volumes - in megalitres (ML) - are given for each water priority group (supplemented water) or water allocation group (unsupplemented water).
Overall total numbers and volumes are also provided for the entire water plan area for the reporting period.
The volume of turnover as a percentage of the total nominal volume (i.e. the volume traded as a percentage of the amount available for trade) is also provided for each water supply scheme or water management area and again as a total for each water plan area.
Note: Only whole percentages are provided and any percentages less than 1 are presented as <1.
In the monthly reports, financial year-to-date totals for numbers, volumes and percentage of turnover are also provided for each water plan area and state-wide.
Price information is provided in terms of $/ML. For each water priority group or water allocation group, a total price is given for trades during the reporting period. This price is a weighted average price.
The following transfers are included in the price calculation:
- transfers for a monetary consideration of $1 or more
- transfers for unusually high dollar amounts, once validated on ATS
- transfers of multiple water allocations in the 1 transaction with the 1 total consideration and where the allocations have the same characteristics.
The following transfers are excluded from the price calculation:
- transfers for no monetary consideration
- transfers of multiple water allocations in the 1 transaction with 1 total consideration and where the allocations have differing characteristics. For example, if the transaction includes the transfer of supplemented and unsupplemented water or the transfer of water of different water priorities
- transfers that include other property, such as farm equipment in the sale price.
Weighted average price
This weighted average price is calculated by adding the total sale price of each relevant transfer then dividing that total by the total volume of water transferred.
For example, 6 trades were undertaken in Region A during the 1 reporting period:
- trade 1: 15ML @ $1500/ML
- trade 2: 30ML @ $1650/ML
- trade 3: 150ML for NIL consideration
- trade 4: 250ML for a total consideration of $1
- trade 5: 210ML plus 50 ML for a total consideration of $195,000
- trade 6: 200ML for NIL consideration.
Applying the business rules outlined above, the number of transfers would be recorded as 6. The total volume of water transferred would be recorded as 905ML.
The calculation of the weighted average price for this group of water transfers will include trades 1, 2, 4 and 5 and exclude trades 3 and 6 as there has been no monetary consideration paid.
Trade 5 is a multiple water allocation transaction - 2 water allocations with the same characteristics (i.e. water type and priority level) were traded in the 1 transaction for a total consideration of $195,000. One allocation was for 210ML and one for 50 ML making an average of $750/ML (195,000/260=750). Trade 5 would not be included if the transfer included both supplemented and unsupplemented water.
Weighted average price calculation
- (Total consideration) - (15*1500) + (30*1650)+(250*1) + (210*750) + (50*750) = $267,250
- (Total volume) - 15 + 30 + 250 + 210 + 50 = 555ML
- (Weighted average price) - 267250/555 = 481.53
The weighted average price for this group of trades would therefore be listed as $482.
Transfer of ownership - land and water
This table is included for comparative purposes and relates to the combined sales of land and water allocation titles in the same transaction.
This table presents the total number, total volume and total percentage turnover of combined water allocation and land sales that were undertaken in each water plan area during the reporting period.
- Last reviewed: 1 Dec 2016
- Last updated: 9 Dec 2020
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