The Albanese Government is looking to save over $800 million by scrapping old water projects. 

The Government says it will achieve savings of $872.5 million over 11 years from 2022–23 through investment decisions on National Water Grid Fund projects, including not proceeding with:

  • $595.0 million over 7 years from 2026–27 for the Dungowan Dam project, as the business

  • case did not provide sufficient support for construction of the project

  • $162.5 million over 7 years from 2026–27 for the Emu Swamp Dam and Pipeline project, which is being reconsidered against alternative options as part of the regional water assessment

  • $39.7 million over 4 years from 2022–23 for the Southern Forests Irrigation Scheme project, as additional planning activities did not provide sufficient support for construction of the project

  • $35.0 million over 3 years from 2022–23 for the Fingal Irrigation Scheme, as low customer demand does not support construction of the project

  • $40.3 million over 3 years from 2022–23 for projects that are being re-scoped, not progressing or do not require additional Commonwealth funding

The budget measures also defer funding of $19.1 million from 2026–27 for the Wyangala Dam Wall Raising and the Hughenden Irrigation Scheme projects, with a final decision on these projects to be taken once planning work is complete.

The proposed expansion of Wyangala Dam, located near Cowra in the Central West region of New South Wales, has been in the works for over three years. 

The estimated $650 million cost of the project was supposed to be shared between the federal and state governments.

Tom Green, a member of the Lachlan Valley Water irrigators' group, says proponents “can only surmise that it's been pushed back to the New South Wales government to make a decision”. 

However, the Government has pledged to provide $70.9 million over 11 years from 2023–24 to extend resourcing for the National Water Grid Authority to deliver committed water infrastructure projects and support its expanded remit.

The Government will also reallocate $197.1 million over 6 years from 2023–24 from within the National Water Grid Fund to fund construction of 3 water infrastructure projects:

  • $109.0 million for the Northern Midlands Irrigation Scheme

  • $62.1 million for the Sassafras-Wesley Vale Irrigation Scheme

  • $26.1 million for the Quality Water for Wannon project