A proposal by TasWater to increase water bills by 35% over four years has sparked outrage among Tasmanians already grappling with the rising cost of living. The state-owned water company announced on Thursday that it plans to bring forward its forecasted rate hikes for the 2026–30 period to fund critical upgrades to its aging water and sewerage infrastructure.
According to TasWater, the proposed increases would leave the average household $522 worse off annually, while the average business could face an additional $787 per year. For a family of four, the cost could rise by approximately $798 annually by 2030, depending on water usage.
Infrastructure Upgrades and Financial Implications
The announcement comes as TasWater grapples with significant issues in its water and sewerage systems. In the 2023–24 financial year, the company lost 24.5% of its treated water due to outdated infrastructure. TasWater estimates it needs to invest $1.7 billion in upgrades to bring its facilities up to standard.
“Unfortunately, our sewerage network is in terrible shape,” said Matt Balfe, TasWater’s General Manager of Customer and Community. “It’s a long legacy of underinvestment that’s led to this point.”
Currently, only 9% of TasWater’s sewage treatment plants meet Environment Protection Authority standards. The company, which is majority-owned by Tasmania’s 29 local councils and partially by the state government, claims that its formation was necessary to address inconsistent quality and pricing of services that resulted from individual council management.
Community Reactions and Economic Concerns
The proposed hikes have been met with widespread disapproval. Karen Duff, a resident of Sulphur Creek, expressed her dismay at the prospect of an 8.8% annual increase in her water bills. “That’s massive,” she said. “Everything’s gone up, so that’s just an extra added expense on top of everything else.”
Pensioner Michael Burke described the proposed increase as “highway robbery,” questioning the justification for such a steep rise. “I can’t come up with $500 every quarter,” he lamented. “It’s a business, they should be able to cater for their own costs.”
Meanwhile, Jeremy Stingel, a Tasmanian renter, expressed a more supportive stance, acknowledging the necessity of infrastructure upgrades. “It’s a sewerage system. You kind of want that to be as good as it can be,” he noted.
Impact on Renters and Financial Assistance
The move represents a shift in TasWater’s pricing model, with a reduction in fixed charges and an increase in usage-based or “variable” pricing. This change could disproportionately affect renters, as landlords can pass on the variable charge if properties are individually metered.
“Tenants are already under pressure right now. In the past five years, we’ve seen average rents increase by $113 per week in Tasmania,” said Andrew Smith, Senior Solicitor at the Tenants Union of Tasmania. “This will add, for a lot of tenants, to their cost-of-living burdens.”
Currently, renters are not eligible for concessions on water bills. Smith argues that TasWater should broaden access to concessions for eligible tenants. In response, TasWater has pledged to increase its investment in the TasWater Assist program, which offers tailored payment plans and financial counseling to those struggling with payments.
Looking Ahead: Regulatory Approval and Community Engagement
The proposed changes require approval from the state’s economic regulator, which will make a final decision in May 2026 after reviewing TasWater’s proposal and consulting with the community. This period of consultation will be crucial for affected residents and businesses to voice their concerns and seek adjustments to the plan.
As TasWater navigates this complex landscape of infrastructure upgrades and public sentiment, the company faces the challenge of balancing necessary improvements with the financial realities of its customers. The outcome of the regulatory review will be pivotal in determining the future of water pricing in Tasmania and its broader economic implications.
