The South Australian Government will cap water augmentation charges for greenfield developers to help stimulate housing supply in major development areas.
Under the current policy setting those who benefit from new infrastructure pay for it through augmentation charges.
Constraints on the SA Water network mean substantial new investment is required to unlock new infrastructure in the outer northern suburbs.
Were that infrastructure to be delivered under the existing system, augmentation charges would average around $100,000 for each new allotment. For example:
- Riverlea – $72,233 per allotment
- Angle Vale - $177,947 per allotment
- Roseworthy - $240,542 per allotment
Given this would make many greenfield developments financially unviable, the State Government will instead adopt a simplified augmentation fee structure from 1 July 2024.
New residential greenfield allotments will make a fixed contribution of $10,000 per dwelling - $5,000 towards water infrastructure and $5,000 for wastewater infrastructure.
New residential infill developments in the greater Adelaide region will also make a contribution based on the number of new households connecting to SA Water’s network.
A $2,500 charge (comprising $1,250 for water and $1,250 for wastewater) will be applied for the 2024-25 financial year, before gradually increasing up to $10,000 from July 1 2027.
The augmentation charge only applies to each new connection and will not apply where a new connection replaces an existing connection.
Where a new property does not connect to SA Water’s wastewater infrastructure or water infrastructure that payment will not be required.
Apartment developments are exempt for the new augmentation charges.
Build-to-Rent, Community and not-for-profit housing will also be exempt from the new augmentation charges in recognition of the role those developments play in driving affordable housing outcomes.
Since 2020, an additional 28,000 customers have been connected to SA Water services. Most have connected into existing infrastructure in suburbs and towns, where they are estimated to have consumed an extra 5.6 billion litres of drinking water every year and create an extra 5.1 billion litres of sewerage.