$1.5bn for water infrastructure

The Malinauskas government has released its Housing Roadmap, announcing a $1.5 billion investment in water and sewerage infrastructure to address housing supply constraints in South Australia, the Property Council reported.

Premier Peter Malinauskas (pictured above left) emphasised the necessity of this investment for the state’s future.

“For too long, governments have kicked the can down the road when it comes to building water infrastructure,” Malinauskas said. “We must make the investments now that set our state up for the future.”

Acelerating housing development

The Housing Roadmap includes accelerated planning approvals, legislative reform, and the establishment of the office of the coordinator-general to facilitate critical infrastructure plans. The $1.5bn investment aims to unlock thousands of new allotments for home construction.

“The record $1.5bn water infrastructure investment in this Housing Roadmap will unlock thousands of new allotments to allow industry to build the homes we need to deliver on the opportunities before us,” Malinauskas said.

Property Council on the government move

Property Council’s South Australian executive director, Bruce Djite (pictured above right), welcomed the announcement but stressed the importance of prompt implementation.

“We welcome the government’s announcement today, but now, the rubber must truly hit the road and we need to see this plan delivered,” Djite said.

“$1.5bn for water investment over the next four years is a courageous policy decision, but it is important the government outlines exactly how, where, and when this money is going to be spent.”

Shared cost model

The roadmap includes a shared cost model for water augmentation charges, where developers, SA Water customers, and the state government will share the costs starting July 1. Key points of the model include:

• New residential greenfield allotments contributing $10,000 per dwelling: $5,000 for water infrastructure and $5,000 for wastewater infrastructure.
• New residential infill developments in greater Adelaide contributing based on new households connecting to SA Water’s network, with charges starting at $2,500 per connection and increasing to $10,000 by 1 July 2027.
• The augmentation charge applies only to new connections, not replacements.
• Exemptions for apartment developments, build-to-rent, community, and not-for-profit housing.
• SA Water customers will face a 3.5% increase above CPI, approximately $20 per quarter.

Addressing the housing crisis

The Housing Roadmap aims to tackle the housing crisis by increasing supply.

“The only way out of this housing crisis is supply, supply, supply,” Djite said. He called for fast-tracked approvals and clear, simple augmentation fee requirements to stimulate industry activity.

“Depoliticising development is crucial in easing the housing crisis, and today’s plan should be the start of a more mature ongoing conversation around development that recognizes industry’s role in solving housing.”

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