Nationals claim water market reacting to buyback news, but brokers doubtful

However, brokers say they're yet to see any response to the announcement, which was vague and without a timeline.

Federal Water Minister Tanya Plibersek confirmed the funding - the amount of which was kept secret due to "commercial sensitivity" - was for water buybacks, as Labor looks to fulfil its promise to deliver the Murray-Darling Basin Plan on time and in full, including the 450 gigalitres of environmental water.

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"I've said all along that voluntary buybacks are on the table.... [the funding] includes buybacks, and infrastructure and efficiency projects," Ms Plibersek said.

"The reason [the figure] is not published is because if you walk into a negotiation with the amount you're prepared to pay for something, you don't get the value for money."

Nationals senator and Coalition water spokesperson Perin Davey said she'd already received calls from water brokers claiming some of their permanent water listings have dropped off the market "to wait until the government comes in, because people think they're going to get paid more".

"The reality is just by flagging their intention to buy backs, they are already distorting the market," Senator Davey said.

"[Ms Plibersek] is not being transparent with the Australian public by saying how much they'll spend. I know she claims that it's for commercial sensitivities... but it's already having a market impact."

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H20X chief executive Lex Batters said he hasn't seen any movement in the market in response to the buyback line item.

"Just because there is a vague sentence doesn't mean the market will react in the next week or even the next month," Mr Batters said.

"Yes it's been discussed, but we haven't seen an influx of sellers or buyers, because if those looking to buy were concerned they would try to get in before the price goes through the roof.

"From my point of view, it's all a bit vague, particularly when the market has been expecting Labor to do that since it was elected."

Waterbroker Anthony McClosky also said he hadn't seen the announcement have any effect on the market and there was a "lot more to be discovered" before it could be said what influence it would have.

"It's a bit early to have an impact, and from the other conversations I've had with brokers, they haven't heard anything either," Mr McClosky said.

"There are all sorts of things at play when someone sells water. They might be selling it for the money, which they need sooner rather than later. The buyback money - and their entitlement - could be sitting there until 2024 if they wait to sell it to the government."

National Farmers Federation natural resource management general manager Warrick Ragg said whether or not the direct impact of the buyback announcement was widespread, there was a level of uncertainty because the funding was not aligned with a specific policy commitment, other than to get the 450GL.

"There is concern because that announcement puts the resources in front of the policy, which probably won't get discussed until the next meeting of water ministers early next year," Mr Ragg said.

"There are lots of questions and not a lot of answers."