Thousands of Australian households set to be slapped with mammoth bill hike amid cost of living crunch

Sky News AU

24-07-2025

Thousands of Tasmanians are set to see their water bills skyrocket by almost 40 per cent in the coming years as the state grapples with deteriorating infrastructure.
Tasmania's water infrastructure is facing mounting difficulties with existing pipelines and treatment plants dating back decades.
This has led to complications such as widespread leaks, water quality concerns and mass disruptions to services, with TasWater undertaking a major $1.9 billion reconstruction program over the next five years.
Despite the government-owned utility provider moving to freeze prices at zero per cent from 2019-2021 during the peak of the pandemic, it was revealed that TasWater would hike prices by 3.5 per cent in the 2025-26 financial year.
After warning customers in late May that future increase 'are likely to be higher' TasWater released its new Price and Service Proposal on Thursday which proposed a 40 per cent hike in water bills over four years.
The controversial proposal, which comes amidst a cost-of-living crisis includes a yearly increase of 8.8 per cent from the period of 2026 to 2030.
However, the proposal which represents a significant jump from the previous spike must first be approved by the Tasmanian Economic Regulator.
The regulator has previously made amendments to such price hikes in the past.
The average water bills for Tasmanian households will balloon from $1,407 in 2026 to $1,929 in 230, an eye-watering increase of $522.
General manager of customer and community services at TasWater Matt Balfe conceded the decision would pile on added pain to Tasmanian families, but stressed the move was necessary to finance critical reconstruction works on the states failing sewerage system.
"Unfortunately, the investment required is large. We're looking at $1.7 billion over the next four years,' Mr Balfe told ABC Radio Hobart.
"This is a network that spills too often, that is discharging to the environment in an unacceptable fashion.'
The explanation mirrors TasWater's justifications for the price hike announced in late May for the 2025-26 financial year where it said bills would continue to surge as 'operational costs rose and infrastructure continued to age.'
The Tasmanian Council of Social Services (TasCOSS) which is the peak body for the community services industry in Tasmania lashed the move and said residents were already facing record high electricity and gas bills.
"Significant increases in the price of water and sewerage services could contribute to higher rents and water costs for private rental tenants, whose landlords have the option to pass on the increased costs," TasCOSS chief executive Adrienne Picone said in a statement.
'Tasmanians on the lowest incomes are already making enormous sacrifices to afford their household bills, with prices for the essentials still continuing to rise.
'We know those who are struggling the most are already rationing and trading-off the basics — going without food, medication and energy to pay their bills.'
Mr Picone said that while the TasWater's existing discount to concession customers was welcome, she outlined it was only offered to property owners and neglected renters completely and that more cost-of-living relief was desperately needed from the state government.
Tasmanian Premier Jeremy Rockliff whose government is currently in a state of political limbo after Saturday's election resulted in a hung parliament, scrapped its plan to explore the privatisation of publicly owned assets and companies, including TasWater.