Environmental contributions are funds collected from water supply authorities under the Water Industry Act 1994.

Under a 2004 amendment to the Act, environmental contributions are collected to fund initiatives that seek to promote the sustainable management of water or address adverse water-related environmental impacts.

Environmental contributions are one of the most important funding tools assisting Victorians to manage water sustainably, and a means of accounting for the environmental costs associated with the provision of water-based services.

Funding of sustainable water resource management activities through environmental contributions ensures the costs of water-related environmental activities are recovered from water users.

Current environmental contributions

The sixth tranche of the environmental contribution (EC6) began 1 July 2024 and is expected to raise $705 million over 4 years.

The initiatives support continued delivery of the government’s long-term water plan, Water for Victoria, as well as actions under key strategies including:

Annual reporting on progress will start from 2025, with initiative progress reports published on this website.

EC5 (tranche 5)

The fifth tranche of the environmental contribution, began 1 July 2020 and raised $693.9 million over 4 years to fund continued delivery of the government’s long-term water plan, Water for Victoria.

Each year we provide updates on achievements and expenditure of initiatives funded by EC5. You can read the EC5 initiative progress reports here.

Program evaluations were also undertaken, which informed an external, independent review of the overall EC5 program. This overall report highlights a broad range of positive outcomes for Victoria from EC5 investment. The report notes the investment is well aligned with, and shows progress toward:

  • the legislated objectives of the EC, and
  • key Victorian Government policies and strategies (listed above).

The full report is available below:

Previous environmental contributions

EC4 (tranche 4)

The fourth tranche of the environmental contribution commenced on 1 July 2016 and concluded on 30 June 2020, investing $537.1 million into delivery of actions under Water for Victoria.

EC3 (tranche 3)

The third tranche of the environmental contribution was established in June 2012 and ceased on 30 June 2016, generating $405.3 million.

EC1 and EC2 (tranches 1 and 2)

The first tranche of the environmental contributions commenced in July 2004 and collected a total of $226.5 million for the 4-year period from 2004 to 2005 to 2007 to 2008.

The second tranche of the environmental contributions collected a total of $277.6 million from 2008-09 to 2011 to 2012.

Reports for previous environmental contributions

To receive a copy of tranches 1 to 4 reports, contact the Customer Contact Centre on 136 186 or contact us.

Page last updated: 18/12/24