02 Feb 2026
Safeguarding Tasmania’s water future
TasWater acknowledges the release of the Tasmanian Economic Regulator’s Draft Report and Proposed Price Determination for their fifth Price and Service Plan.
TasWater Chief Financial Officer, Kane Ingham, said the draft determination is a vital part of the regulatory process following our submission in June 2025.
We proposed an annual 8.8 per cent price increase for the period of 2026 – 2030, which we believe strikes a fair balance for the need for investment whilst minimising impacts to our customers,” Mr Ingham said.
“Following the release of the regulator’s draft determination today proposing a 4.3 per cent annual increase, we will now take some time to analyse the draft outcomes and assess what it means for Tasmania’s water and sewerage infrastructure and for the services we provide - should the draft determination be formalised.
“We know there are risks in delaying projects, not just because of the heightened risk of failures in ageing infrastructure and their impacts, but also because the longer these projects are put off, the more expensive they are likely to be.
“TasWater was established in 2013 to provide the scale and capability required to address sector challenges that individual councils could not manage alone.
“We spent our first 10 years upgrading water quality to ensure boiled water alerts are no longer an everyday reality for many towns.
“We want Tasmanians to get clean drinking water when they turn on the tap. We want families to be able to enjoy our beaches and waterways without worrying about closures due to failing sewer plants. And we want to respond to the housing crisis by supporting Tasmania’s housing growth by ensuring our infrastructure keeps pace with demand.
“We are always seeking other funding streams as part of our business-as-usual approach to capital expenditure. Over the last four years, we secured more than $300 million in federal and state government grant funding. We have also worked very hard to identify savings within our own organisation, including more than $38 million in operational savings and $100 million in capital savings.”
Water Service Association of Australia (WSAA)’s Adam Lovell echoed TasWater’s critical need to update its ageing infrastructure and the risks of deferring investment.
“As the peak body representing the water sector in Australia, we provided a submission to the Tasmanian Economic Regulator’s price and services review of TasWater,” Mr Lovell said.
“As outlined in our submission, Tasmania is not unique in the challenges it faces. Right across Australia, water utilities are dealing with the same pressures - from ageing infrastructure to rising water and sewerage infrastructure costs, delaying investment is not optional. It is the foundation for everything else - housing, industry, health, the environment and so much more.
“TasWater has been upfront about the fact that prices will need to rise over the coming years to support the infrastructure the state relies on. It's never an easy conversation, especially during high cost of living and we know the time is never right for a price increase. But the alternative – postponing necessary upgrades and increasing service failures – is far worse. Choosing to delay investment in assets now will cost us all more in the future.
“TasWater in very mindful of the cost of living challenges for Tasmanians and has tried to strike the balance of investing in assets now against kicking the can down the road,” said Mr Lovell.
While these proposed changes are significant, TasWater is committed to ensuring support is available to anyone who needs it.
“We understand any increases to our customer bills may impact them, that’s why we have boosted our TasWater Assist program, to help those who need it most,” said Mr Ingham.
The Regulator will now conduct a six-week public consultation period before price and service standards for water and sewerage services in Tasmania are finalised for implementation from 1 July 2026.
We encourage Tasmanians to share their views via the Tasmanian Economic Regulator’s website, visit: Office of the Tasmanian Economic Regulator
For more information on TasWater’s proposal, visit: Our water future