Proposed NSW Dam Safety Levy


31st October 2020

FMA has provided feedback to Dams Safety NSW objecting to its proposed levy on flood mitigation detention basins.

As we advised NSW Members earlier this month Dams Safety NSW is proposing a change to the Dams Safety Regulation 2019 which would require owners of declared dams to pay a levy to meet costs of administering the Dams Safety Act.

The proposed annual charges range from $5,500 for a dam classified as being very low or low consequence, to $18,425 for a dam that is classified as extreme consequence. Owners of multiple dams face the prospect of very significant ongoing fees.

Dams Safety NSW “declares” dams that have a potential to endanger downstream life, cause major damage or loss to infrastructure or the environment, or have major health and social impacts. Once a dam is declared, the dam owner must comply with the requirements of the Dams Safety Act 2015 and the Dams Safety Regulation 2019.

Declared dams can include flood mitigation retarding, detention and retention basins, many of which are owned by Councils. Around 80 Local Government owned flood mitigation basins have been “declared” by Dams NSW.

Councils with flood mitigation basins have raised concerns with FMA that the imposition of the levy could be considered cost shifting, and would significantly impact on Councils’ operational budgets. One Council has advised that application of these fees would double the annual cost of maintaining its flood retention basins.

FMA is concerned that these very significant annual charges, particularly when multiple structures are involved, would provide a disincentive for Local Government to provide further flood mitigation structures.

The provision of flood mitigation infrastructure is not a commercial operation for which charges can be applied, such as water supply. Flood mitigation basins provide essential public safety benefit, and FMA considers they should be exempt from the proposed Dam Safety Levy.

More details about the proposed levy are at: https://www.damsafety.nsw.gov.au/reforms/2020-reform-dam-safety-levy/

FMA’s submission is at the FMA Submissions page.

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