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$vuetify.icons.faPhone1300 650 620

TasWater headworks proposal risks housing affordability and new home supply

Media release

TasWater headworks proposal risks housing affordability and new home supply

Media release
The Housing Industry Association (HIA) today called on the Tasmanian Economic Regulator to closely scrutinise TasWater’s plan to almost double developer headworks charges for new residential connections—from $3,514 to $7,048.

HIA Executive Director Tasmania, Benjamin Price, said the increase would flow directly into land and building costs at a time when Tasmania needs more homes.

“TasWater’s proposal will lift the base charge to $7,048 per connection from 1 July 2026. In a housing affordability crisis, this is the wrong move at the wrong time.

“That’s an extra ~$3,500 per lot before a shovel hits the ground or a slab is poured - costs that end up with Tasmanian families.”

Mr Price said HIA will stand up for the residential construction industry, calling on the Economic Regulator to closely scrutinise this increase that will hit consumers and industry.

“We support fair, transparent contributions to fund the growing infrastructure needs of the State. But this proposal, at this time, is not appropriate.

“TasWater proposing to hit Tasmanian households and home builders, while increasing dividends to be paid to councils, is out of touch.”

The Economic Regulator’s Draft Report is scheduled for February 2026, followed by six weeks of public consultation, with a final determination before 30 June 2026 for prices applying 1 July 2026–30 June 2030.

“Let’s get one thing straight – these costs are ultimately paid by consumers. We need solutions that add homes, not hurdles,” concluded Mr Price.

For more information please contact:

Benjamin Price

Executive Director - Tasmania
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