Urban water infrastructure to be funded by price rise on cards

Cash-strapped households should not be burdened with the costs of repairing strained water infrastructure as users in Sydney and surrounding areas face a potential 50 percent price increase, according to the New South Wales (NSW) opposition.

State-owned utility Sydney Water has proposed that water rates should go up by 18 percent starting from July 2025, followed by a seven percent increase annually for four years.

If approved by the Independent Pricing and Regulatory Tribunal, this price hike could lead to hundreds of dollars in additional water bill expenses each year for residents in Sydney and the Hawkesbury region.

The tribunal conducts periodic reviews of pricing for all government-owned water corporations, which function as monopolies.

NSW shadow treasurer Damien Tudehope highlighted Sydney Water’s claim for $16.6 billion (US$10.9 billion) in new water infrastructure, primarily in Sydney’s western region, as necessary to accommodate the growing population.

Families already grappling with rising costs for energy, groceries, and essential items should not have to bear the extra financial burden of funding infrastructure due to the “Albanese Labor government’s failed immigration policies,” Tudehope stated.

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Australia’s increasing population growth has sparked criticism from the federal coalition, with immigration policy playing a central role in its upcoming election campaign in 2025.

Tudehope urged NSW Premier Chris Minns to collaborate with Prime Minister Anthony Albanese to control immigration in order to mitigate price increases.

“You cannot overlook the fact that if you aim to meet housing targets, you must also provide the necessary infrastructure,” Tudehope informed journalists in Sydney.

“That is the dilemma we are currently facing, the connection between housing objectives and immigration.”

State Water Minister Rose Jackson revealed that Minns had communicated with the pricing tribunal, emphasizing the state government’s focus on the cost of living.

However, she acknowledged that the agency operates independently of the government and acknowledged the urgent need for more water infrastructure to support housing.

“It is crucial for them (the tribunal) to evaluate these requests through a proper assessment process,” Jackson remarked to journalists in the town of Griffith.

A decision on the tribunal’s pricing review is anticipated in March.

Property Council NSW, an industry group, stated that water price hikes over the next five years are vital to accommodate more housing.

“We recognize the potential impact of these increases on both residents and businesses, but it is a necessary measure to ensure sustainable, high-quality water services for our city,” remarked executive director Katie Stevenson.

“These increases will serve the growth in various regions across western Sydney over the next decade, including key growth areas like the south and northwest regions, greater Macarthur, greater Penrith to Eastern Creek, and Mamre Road and the Aerotropolis.”

As part of national housing agreements, NSW has committed to delivering 377,000 new homes by 2029, with over 150,000 planned for Sydney’s western and southwestern regions.