Under Section 71Q of the Water Management Act 2000, the whole or part of the share component of a licence can be sold. For example, a water access licence holder may wish to sell all or part of their share component (their share or entitlement of the available water under the licence) to another licence holder.
If you want to buy a share component and don't already hold a licence, you must apply for a new water access licence with a share component of zero units.
Note that for water access licences with multiple holders, any reduction in value of the share component will affect the value of all holdings in the licence.
Details on the process for this dealing are provided in the section on the dealings process and in the guide provided with the application form. If you have any questions, contact your local office.
Search the NSW Water Register for trading statistics on share assignments and processing times for applications.
All holders should understand the implications of an assignment of share component for the value of their holding in the licence.
An assignment of a share component to a water access licence is likely to increase the value of the licence. Any increase in value will benefit all holdings in the licence.
In the case of multiple holders, a change in the share component will affect the value of ALL holdings in the licence. Where one holder wants to undertake the share assignment, to avoid any impact on the value of the other holdings, it will be necessary for all the co-holders to lodge a transfer form (s.71M) to re-align the individual holding shares in the licence. See Transfer access licence.
The transfer form (s.71M), where applicable, must be lodged with Land and Property Information (LPI), together with the share component (s.71Q) lodgement documents.
When registering the notification of the share assignment at LPI, the consent of the holders of any registered security interests (mortgages and company charges held by a bank or other lending institution) in the licence being reduced is also required and the water access licence certificate must be produced.
Reducing the share component may also reduce your water access licence's water allocation account limit. Should this happen, water allocations in excess of the new limit will be forfeited. Refer to your water sharing plan account rules or contact your local WaterNSW office for advice on account limits.