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The Age
10-07-2025
- Business
- The Age
Our water bills are too cheap – and we'll soon pay dearly for that
There are no more important social and economic policy challenges in Australia today than housing and productivity. Nationally, there is a housing target of 1.2 million homes by 2030 to fix an affordability crisis for existing and future generations of Australians. Meanwhile, the federal government has convened a summit to turn around a decades-long decline in productivity. Playing out across Australia, and particularly Sydney, is an issue that profoundly affects both of these challenges, and it has been building for the past decade. Like new roads and energy infrastructure, new water and wastewater pipes and infrastructure must be built to accommodate new housing. NSW Treasurer Daniel Mookhey has described the years ahead as the decade of pipes and poles. Data centres, the new building block of productivity, need secure water sources just as much as they need energy and land. Data centres of the future will be among the biggest water users in any capital city in Australia, and dozens are expected in major cities over the next decade. In Sydney, against a backdrop of criticism for not keeping pace, Sydney Water has proposed to spend $15 billion over five years to maintain ageing infrastructure, meet the housing needs of a rapidly growing city and ensure a resilient and secure supply of water. However, in its draft decision, the NSW pricing regulator, IPART, has proposed a cut of $5.9 billion, or 35 per cent, over the next five years – one of the largest cuts to proposed water investment we've seen for a generation. IPART's draft determination has cut investment for housing-related infrastructure by $3.2 billion over those five years compared with what Sydney Water proposed. Loading Like many others, the Water Services Association of Australia, which I lead, has raised concerns that delaying investment risks a lack of new water and wastewater connections placing a handbrake on housing and productivity in Sydney. While Sydney is the focus of friction now, we've been highlighting for some time the funding constraints that exist across the industry. The National Performance Report for the urban water sector was released this year by the Bureau of Meteorology. It went unreported in the media. It shows two contrasting trends over the past decade: first, bills for water and wastewater services have remained flat; second, investment has been significantly increasing – water and wastewater capital expenditure during that period roughly doubled. The flat bill trend is not sustainable. A step change in capital expenditure is required, with investment for housing being the biggest driver.
Sydney Morning Herald
10-07-2025
- Business
- Sydney Morning Herald
Our water bills are too cheap – and we'll soon pay dearly for that
There are no more important social and economic policy challenges in Australia today than housing and productivity. Nationally, there is a housing target of 1.2 million homes by 2030 to fix an affordability crisis for existing and future generations of Australians. Meanwhile, the federal government has convened a summit to turn around a decades-long decline in productivity. Playing out across Australia, and particularly Sydney, is an issue that profoundly affects both of these challenges, and it has been building for the past decade. Like new roads and energy infrastructure, new water and wastewater pipes and infrastructure must be built to accommodate new housing. NSW Treasurer Daniel Mookhey has described the years ahead as the decade of pipes and poles. Data centres, the new building block of productivity, need secure water sources just as much as they need energy and land. Data centres of the future will be among the biggest water users in any capital city in Australia, and dozens are expected in major cities over the next decade. In Sydney, against a backdrop of criticism for not keeping pace, Sydney Water has proposed to spend $15 billion over five years to maintain ageing infrastructure, meet the housing needs of a rapidly growing city and ensure a resilient and secure supply of water. However, in its draft decision, the NSW pricing regulator, IPART, has proposed a cut of $5.9 billion, or 35 per cent, over the next five years – one of the largest cuts to proposed water investment we've seen for a generation. IPART's draft determination has cut investment for housing-related infrastructure by $3.2 billion over those five years compared with what Sydney Water proposed. Loading Like many others, the Water Services Association of Australia, which I lead, has raised concerns that delaying investment risks a lack of new water and wastewater connections placing a handbrake on housing and productivity in Sydney. While Sydney is the focus of friction now, we've been highlighting for some time the funding constraints that exist across the industry. The National Performance Report for the urban water sector was released this year by the Bureau of Meteorology. It went unreported in the media. It shows two contrasting trends over the past decade: first, bills for water and wastewater services have remained flat; second, investment has been significantly increasing – water and wastewater capital expenditure during that period roughly doubled. The flat bill trend is not sustainable. A step change in capital expenditure is required, with investment for housing being the biggest driver.
