Bundaberg council doubles water costs

A councillor has hit back at business and community complaints after the council’s shock hike in water prices as its budget reveals an expected operating surplus of millions of H20 dollars.

Gin Gin Domestic Water Supplies has increased delivery prices, citing a doubling in council water charges.

A Gin Gin water supply business has warned its customers of a massive hike in its prices following a doubling of water fees by the Bundaberg council.

Gin Gin Domestic Water Supplies said it would “unfortunately as of July 1” have to increase its “prices due to the council doubling the cost of water. Enjoy [the] rain”.

The increase means an additional $30 on the cost of a 13,000L load of water, it said.

Community responses online expressed frustration and disappointment.
One person described the hike as “just greed,” while another labelled the council’s annual fee and water volume costs as “slack”.

Some residents criticised the council’s budgeting and accountability, with comments like:

“Councils not sticking to a budget it’s time to get rid of them all board of directors as well.”

“Council are not doing their job! This is unbelievable! Have they forgotten community?”

Others called out the broader system of water delivery and usage.

Gin Gin Domestic Water Supplies has been forced to raise its prices after a doubling of water fees by Bundaberg Regional Council.

“If people put more tanks in and conserve what they have then they won’t have to pay for the council to supply it, for the water carriers to carry it to your house because you don’t have enough storage. Somebody always pays, nothing is free.”

In response to customer concerns, the supplier posted that as of July 1, water would cost $4.50 per KL, in addition to an annual fee are $378.
“We only had notification 10 days ago,” it said.

“There has been no advice as to why there has been such a large increase in fees which is disappointing.

“I assume there will not be an improvement in the taste for this increase. But watch this space, as we are investing in alternative sources.”

According to the Bundaberg Regional Council 2025–26 budget, water services are treated as a “significant business unit”.
The budget outlines that pricing for utilities such as water is based on full cost recovery and commercial return principles, in line with National Competition Policy guidelines.

This means charges are designed to recover the full economic cost of service provision, including a commercial return on assets employed.

Residential users are billed on a two-tier system:

$1.50 per kilolitre for the first 150kL per half-year

$2.50 per kilolitre for any use beyond that

For commercial users — including water carriers — separate bulk rates and infrastructure charges apply depending on meter size.
For example, a 20mm potable connection incurs a $488 annual fee, while a 100mm meter attracts a $12,200 charge.
Even vacant land in water supply areas incurs a $488 annual fee to cover maintenance costs.

Gin Gin Domestic Water Supplies has increased delivery prices, citing a doubling of council water charges.

The council’s water business unit is forecasting an operating surplus of $3.38 million for 2025–26, with revenue from water services projected to reach more than $41 million.

That surplus is expected to increase to $5.26 million by 2027–28.

Despite the financial goals, the abrupt increase and lack of communication has left some locals questioning whether the changes reflect community needs.

As one anonymous member wrote:

“Every year on the 1st of July council put it all up dumping fees the lot shame on the council.”

Gary Kirk holds the Division 7 seat for the Bundaberg Regional Council.

Water, Waste and Renewable Economy Portfolio spokesman councillor Gary Kirk said at the Council meeting on 29 April 2025, the 2025/2026 Fees and Charges were formally adopted to take effect from 1 July 2025.
“One of the key changes is an adjustment to the charges for Bulk Water Points in the region.

“From 1 July, the water rate changed to $4.50 per kilolitre with an annual administration and billing fee of $361. This update aligns with Council’s commitment to Full Cost Pricing.

He said this meant the fees charged need to cover the entire cost of providing the service - not just daily operations but also maintenance, asset depreciation, infrastructure upgrades and other long-term costs.

“An independent review showed that Council had only been partially recovering the true cost of treating and delivering bulk water.

“We understand these changes may impact small businesses and rural residents and Council is sympathetic to these concerns and has considered them carefully.

However, he said “for too long, the costs of providing water have been subsidised by others who don’t use the service. That’s not sustainable or fair.”
He also said a component of revenue from these fees would go into improvements, efficiencies and upgrades now and into the future.

“Looking ahead, while no one wants price increases, the reality is that as input costs rise, Council must consider increases to continue delivering reliable services,” he said.

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