Cairns Water Security Project receives additional $87.5m from Federal Labor Government
Cairns residents will avoid a costly hike to their rates as the federal government pours in additional funds toward a critical infrastructure project.
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Cairns residents will avoid a costly hike to their rates after the federal government poured in additional funds toward a critical infrastructure project.
Minister for Environment and Water Tanya Plibersek on Friday confirmed the federal government would tip in an additional $87.5m towards the $472m Cairns Water Security Project Stage 1, bringing its share to $195m, and matching the state government’s commitment.
Ms Plibersek’s office confirmed the additional money was immediate funding, to be included in the next federal budget, which would handed down on March 25.
With Cairns’ water demand expected to outweigh supply by 2026, construction on stage 1 of the project began in August 2024, despite the $87.5m funding shortfall.
Initially costed at $248m in 2022, inflation was blamed for the blow-out before Cairns Regional Council began making requests for additional funding – warning that without state and federal intervention, ratepayers were staring down the barrel of a rates increase of over $400 per year for 15 years.
Ms Plibersek said her government’s decision to tip in the additional, long sought-after funding was motivated by wanting to counter the cost-of-living pressures residents were already enduring.
“As communities grow, we need to make sure they’ve got the basic infrastructure to support them,” Ms Plibersek said.
“Everyone deserves clean, secure water. It’s essential for health and wellbeing, and also for economic growth.
“We know just how important this project is for this growing region. We want to end the uncertainty and make sure secure, reliable water is delivered. This commitment makes that possible.
“This isn’t just essential for the people who live in Cairns, but also for the industry who rely on the area. It’s good for Cairns, and good for Queensland.”
Cairns-based senator Nita Green last week hinted that funding would be announced in “due course,” stating that in the lead-up to an election “all governments and oppositions consider the commitments they would make”.
“This is an incredibly important project for the Cairns region,” Ms Green said.
“Our investment will secure the region’s water supply into the future and creating good, local jobs throughout its construction.”
The project includes a new water intake at the Mulgrave River, a new water treatment plant and water reservoirs at Gordonvale.
It also includes supporting infrastructure to connect the new intake to the existing water network.
The project is expected to provide approximately 6.4 gigalitres of extra water to the region each year, which is a quarter of Cairns’ current annual use.
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Originally published as Cairns Water Security Project receives additional $87.5m from Federal Labor Government
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