The cost of connecting a new home to water and sewerage in Tasmania is set to double under a proposed pricing plan from TasWater.
The state-owned utility wants to increase headworks charges from $3,514 to $7,048 per standard connection from July.
Labor MP Dean Winter has slammed the proposal, warning it would worsen Tasmania’s housing crisis by discouraging construction and driving up prices.
“At a time when we need more houses, TasWater is taking actions that will reduce the number of new homes that are built and increase the price of the ones that are,” he said.
The fee covers connection to both water and sewerage services. By 2030, the charge would rise further to $7,639.
TasWater’s proposal documents show the utility is applying a “growth pays for growth” principle, arguing that new developments should cover infrastructure costs rather than passing them on to existing customers.
The utility said it consulted with the development community in June 2024, adding that maintaining a single statewide charge provides predictability for builders and investors.
Winter has called on the state government to explain why it did not oppose the plan in June and to lodge a submission when public consultation opens next month.
A Tasmanian Chamber of Commerce and Industry (TCCI) survey released today found 57% of businesses were unaware of the proposed increases.
More than 81% said the rises would negatively impact their operations.
TCCI CEO Michael Bailey said the findings revealed a clear communication gap with the business community.
“Businesses are already managing cost pressures across energy, insurance, rent and wages,” he said.
“The fact that a majority of respondents weren’t aware of proposed increases of this magnitude is deeply concerning.”
The price and service plan is set to take effect from July 1, subject to approval by the Tasmanian Economic Regulator.
