Victoria has refused to sign on to the federal government’s new Murray-Darling Basin Plan.

Federal Water Minister Tanya Plibersek has unveiled a new agreement to revitalise Australia's largest river basin, coming just ahead of the original plan's deadline.

Plibersek has brokered a new deal with New South Wales, South Australia, Queensland, and the Australian Capital Territory, to extend water recovery project deadlines and deliver an additional 450 gigalitres of environmental water. 

These states will receive extra time and funding to complete projects initially set to be finished by June 2024.

But Victoria has resisted signing onto the new agreement, mainly due to concerns about the economic impact of water buybacks on its agriculture sector. Victoria has contributed significantly to the 450GL target but remains opposed to further buybacks.

The federal government is seeking to purchase water entitlements from willing sellers as a means of water recovery. Past investments in water efficiency projects have proven slow, expensive, and with unexpected outcomes for agriculture and the environment.

Plibersek faces legislative challenges in passing the amendments to the Water Act and Basin Plan required for the new agreement. 

Opposition to further water reallocation is expected, with the Greens calling for stronger environmental measures.

The new agreement aims to recover 450 billion litres a year of water within the original target of 3,200 billion litres, crucial for the health of the rivers and communities depending on them. Transparency and accountability measures are being emphasised, with potential penalties for states failing to deliver.

Experts say that the agreement addresses immediate issues but does not address Indigenous water rights and the impact of climate change on water resources. A Plan revision is planned for 2026.