Victoria's water minister says the government has paused four major environmental projects under the Murray-Darling Basin Plan, opening the door to more water buybacks in the state.
Victoria had proposed nine projects under the Sustainable Diversion Limit Adjustment Mechanism, which allows states to suggest projects to give an environmental benefit while reducing the amount of water required under the basin plan.
Harriet Shing told the Victorian Country Hour the four projects that would have delivered 60 gigalitres of water back into the system would not be complete by the 2024 funding deadline.
She said five projects worth 15 gigalitres were underway.
"It's about timing, it's about funding, it's also about the Murray-Darling Basin Plan," Ms Shing said.
She is also pushing the federal government and other states for a two-year extension to basin plan deadlines of June 30, 2024.
If there is no extension, the environmental works of the four paused projects would not be completed by June 2024.
Under the funding model, Victoria would not be paid for them by the Commonwealth.
Ms Shing said a two-year extension would allow Victoria to meet 98 per cent of its commitments under the plan.
But critics say without the works being complete more federal government water buybacks would be needed from irrigation communities.
Buybacks could restart
Nationals senator and federal shadow water minister, Perin Davey, said she understood the Victorian government's position.
"Without the agreement for an extension, the federal funding is not guaranteed and I can totally understand why the state minister would be reluctant to commence or commission any contracts if they are not sure they are going to get the funding for it," she said.
Senator Davey said without the works, it was likely the federal government would need to enter the market and recommence water buybacks in the region.
"The federal government will have to come out and buy the difference," she said.
"That's gigalitres of water that's going to have to come from somewhere because the offsets won't be met through the infrastructure projects.
"It's also a big loss for the environment because these projects were specifically designed to better manage how to get water flows to special environmental target sites."
Ms Shing said the Victorian government was committed to its policy against further water buybacks for the Murray-Darling Basin Plan in the state.
"I would like to see that we can return water but it has to be with positive or neutral socio-economic outcomes," she said.
Its comes after the federal government confirmed in February it would buy water entitlements in six catchments in New South Wales and Queensland to help meet environmental targets under the Murray-Darling Basin Plan.
