Tasmanian businesses caught off guard by TasWater price hike

New research from the Tasmanian Chamber of Commerce and Industry (TCCI) shows most Tasmanian businesses are unaware of TasWater’s proposed price increases of up to 40% over the next four years (from July 2026), with the overwhelming majority expecting the changes to negatively impact their operations.

A TCCI “hot topic” poll of members found:

• 57.58% of respondents were not aware of TasWater’s proposed increases.
• 81.82% believe the proposed increases will have a negative impact on their business.
• 71.21% are not satisfied with TasWater’s justification for the planned increases (including infrastructure upgrades and compliance requirements).

TCCI CEO Michael Bailey OAM said the findings show a clear gap in communication and consultation with the business community.

“Businesses are already managing cost pressures across energy, insurance, rent and wages. The fact that a majority of respondents weren’t aware of proposed increases of this magnitude is deeply concerning,” Mr Bailey said.
“Water and wastewater charges are not discretionary. When costs rise sharply, businesses either absorb it, cut spending elsewhere, or pass it on — and none of those outcomes support productivity, investment or jobs.”

Member comments highlight concerns around affordability, transparency, and service impacts — particularly for businesses with high water use or exposure to tourism seasonality and trade waste classifications.

Research Snapshot

TCCI Member Poll — TasWater proposed price increases: business awareness and impact
Purpose: Provide a simple, media-ready snapshot of TCCI member sentiment and key statistics.

Snapshot

• Survey type: TCCI member “Hot Topic Poll”
• Sample: businesses (statewide)
• Regional spread: South 62.12%, North 24.24%, North West 13.64%
• Industries represented: broad mix including construction (15.15%), manufacturing (13.64%), retail (10.61%), accommodation & food (10.61%), health care & social assistance (6.06%), agriculture (6.06%) and other services (9.09%).

Key findings
1) Awareness is low

• 57.58% of respondents were not aware of TasWater’s proposed increases of up to 40% over four years (from July 2026).

2) Strong expectation of negative business impacts

• 81.82% believe the proposed increases will have a negative impact on their business.

3) Confidence in the justification is weak

• 71.21% are not satisfied with TasWater’s justification (including infrastructure upgrades and compliance requirements).

What businesses told us (themes)
Open-text responses raised recurring concerns about:

• Affordability and competitiveness (water as an unavoidable input cost)
• Transparency and consultation (limited clarity on why the increase is required and what alternatives were tested)
• Service and communication issues (outage notifications, billing/admin issues, delays)
• Disproportionate impacts on water-intensive and seasonal sectors (incl. accommodation providers)

Why it matters for Tasmania

• Water and wastewater charges directly affect the cost of doing business, pricing decisions, and capacity to invest and hire.

Media Contact:
Michael Bailey OAM – Chief Executive Officer, TCCI