Federal government's GST proposal on rain revisited...

On 14 January 2007, 4350water blog ran the following article:

Federal government proposes GST on rain ...

In a clear sign that the National Water Commission has lost touch with reality, an email from the NWC has surfaced which discusses the likelihood of taxing the water that runs into household rainwater tanks.

On average, when there are no water restrictions, about 30% of household water use is used outdoors.

We are being encouraged to reduce water use and reduce our dependence on dam water supplies.

Imagine the impact on water use if everyone installed a rainwater tank even just for outdoor use.

Then imagine how many people would give up on their rainwater tanks if a NWC plan to tax rain is adopted by the Federal government.

Excerpt from the news.com.au (annotated):

State fuming over 'rainwater tax' plan

14 January 2007

The Victorian Government is outraged at a leaked federal proposal to tax rainwater collected from roofs.

The idea was revealed in a leaked email seen by the Sunday Herald Sun.

Acting Premier John Thwaites yesterday warned that if water was privatised - as proposed by some federal Liberals - a tax on rainwater in tanks would follow. The Bracks Government is furious at the mooted tax - it pays rebates on tanks as a water conservation measure.

In the email, National Water Commission chief Ken Matthews says, "Legally, all water in Australia is vested in governments."

Mr Matthews' email continued: "Governments have not yet considered the capture of water from roofs in rainwater tanks to be of sufficient magnitude to warrant the issuing of specific entitlements to use this class of water. However, if rainwater tanks were to be adopted on a large scale such that their existence impacts significantly on the integrated water cycle, consideration could be given to setting an entitlement regime for this class of water."

See - GST proposal on rain.

Fast forward to August 2007 and the Federal government is claiming that the State will take control of the water in your rainwater tanks - probably sending you a bill for it.

Excerpt from the Courier Mail:

Householders warned of tank water takeover

15 August 2007

Queensland households risk losing control of the rainwater that falls on their roofs.

With dam levels at record low levels, there is concern the State Government is eyeing off billions of litres stored in domestic water tanks

And according to advice tabled in Federal Parliament, there is nothing to stop it taking “ownership” of the water.

Concerned water tank owners fear the Government may extend tough water restrictions to private tank use, or even seize control of their supplies if the drought persists.

The federal advice, from Environment and Water Resources Minister Malcolm Turnbull said households did not necessarily own rainwater that fell on rooftops.

"State and territory governments could establish entitlement regimes in order to regulate the use of water that falls on a person’s roof," he said.
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