Businesses across Tasmania, including those on the Eastern Shore, are contending with substantial increases to their TasWater bills, with some operators questioning their ability to remain open, the ABC reported. These higher charges came into effect on July 1, 2026, following a determination by the Tasmanian Economic Regulator earlier this year.
The increases stem from TasWater’s proposal to fund essential upgrades to the state’s aging water and sewerage infrastructure. While TasWater initially sought steeper price rises, the Tasmanian Economic Regulator approved an average annual increase of 5.7 per cent for four years, starting from July 1, 2026. This was roughly half of the 11.5 per cent annual increase TasWater had originally requested.
For an average small business, this translates to an increase of approximately $172 on their annual bill for the 2026-27 financial year, bringing the average small business bill to around $4,294. Average household bills also saw an increase of about $80 for the same period.
The Tasmanian Economic Regulator capped TasWater’s approved revenue at $1.95 billion, significantly less than the $2.8 billion the utility had sought. Economic Regulator Joe Dimasi stated that the decision aimed to balance the critical need for infrastructure investment with protecting customers from an excessive burden, particularly given existing cost-of-living pressures. The regulator also noted that some older infrastructure, rolled into TasWater’s books when it was formed, was no longer used to deliver services, and customers were being charged for these assets.
TasWater has acknowledged and accepted the regulator’s final determination, stating that the approved price plan will fund a $1.2 billion investment program over the next four years. This investment is intended to improve water security, protect public health and the environment, renew aging assets, and enhance service reliability across the state. The utility also introduced a new variable sewerage usage charge, calculated at 90 per cent of water use for residential customers.
In response to the ongoing impact, the Premier of Tasmania, Jeremy Rockliff, on September 10, 2026, called on TasWater and the state’s 29 councils to consider pausing the current price increases. The Premier acknowledged that the sustained increases are having a growing impact on various sectors, including community groups, sporting clubs, the construction industry, and businesses statewide. The Tasmanian Government holds a 10 per cent share in TasWater, with local government holding the majority 90 per cent share, and the Premier expressed a desire to work with these majority shareholders to find a more sustainable path forward.
For further details on the impact on businesses and the regulatory decision, readers are encouraged to refer to the original reporting by ABC News Tasmania.