Proposed water concessions welcome as part of proposed housing supply boost – but questions remain

Proposed water concessions welcome as part of proposed housing supply boost – but questions remain

The concessions boost was flagged as part of the Malinauskas government’s $1.2b Housing Roadmap package to upgrade and expand Adelaide’s water and sewer network, which in turn should enable an acceleration in the building and supply of new housing.

SACOSS notes this package imposes on all water consumers vastly greater costs for additional water infrastructure that was neither analysed or reviewed for its efficiency in the Essential Services Commission of South Australia (ESCOSA) in making its final determination for 2024-28.  

SACOSS awaits with interest further details around the proposed water concession increase, recognising that while a decent concession increase will help pensioners and households with low water use, it may still make little difference to low income households with high water usage, or households who are not eligible (waged poor).

And while the Housing Trust’s name has been restored and this water infrastructure might be required as a foundation for the development of vastly more public and community housing, sadly, no such investments form part of the roadmap package.

Quotes attributable to Ross Womersley, SACOSS CEO

The Malinauskas government’s roadmap has the potential to be a foundation stone for housing in this state. The supply of all kinds of housing – particularly public and community housing – has dwindled across the state over many decades, and we welcome the government being prepared to take meaningful action to redress this.

However, we are disappointed there was next to nothing in the roadmap around new public and community housing.

SACOSS is keen to see how the property industry steps up to meet this new challenge. Given the support taxpayers are going to be offering developers for the installation of this infrastructure, SACOSS believes the government should ensure the property sector is held properly accountable for building to high energy efficiency and accessibility standards in return.

Building houses now that are accessible and climate change ready will barely cost any extra, and will bring extra benefits over the long term as homeowners and tenants pay less for their energy bills while remaining healthier.

SACOSS is also concerned there were few details about how the roadmap will increase housing supply to the state’s regions. We all know that housing affordability and availability is just as much of an issue across non-metropolitan SA as it is in Adelaide and is especially so in regions with focused economic development such as those in the Upper Spencer Gulf.

In order to unlock this increase in housing supply, we are all facing extra imposts. Industry is facing changes to infill augmentation fees, the government is taking on extra debt, and SA Water has been directed by the government to increase its capital expenditure to deliver the associated water and sewer infrastructure – which its consumers will be paying for into the future.

This means consumers face an average increase in their water bills of around $80 for the upcoming 2024-25 financial year to ensure SA Water is able to deliver on what it has been directed to do. However, given most of this proposed expenditure has not been the subject of regulatory review, and the huge cost escalations in the provision for infrastructure projects like that required for TTG replacement program, can the public have any confidence that these amounts themselves, won’t simply escalate in future?

Among SACOSS’s key concerns arising with the Housing Roadmap and ESCOSA’s final determination:

  • As noted by ESCOSA, the Ministerial Direction for SA Water to outlay $1.192b in capital expenditure has not been scrutinised for prudence and efficiency and potentially undermines the principles of independent economic regulation of a monopoly essential service
  • The lack of any future plans in the roadmap for the development of public and community housing, as well as housing supply developments in our regional areas
  • The associated risk of SA Water not being able to deliver on the measures outlined in the determination, with flow-on long term risks for consumers, who face an expected $80 rise for 2024-25 water bills
  • Capital expenditure increasing by 75% compared to the last regulatory period – 98% of which is due to Ministerial Direction
  • The removal of the requirement for SA Water to supply free paper bills

ESCOSA final determination measures SACOSS supports:

  • The introduction of a family violence policy and provisions (to be fully implemented by 1 Jan 2026)
  • The extension of consumer protections to tenants (including hardship policy communications, and information on prices, fees and charges)
  • SA Water being required to develop policies for early identification of customers facing payment difficulty
  • Additional hardship reporting indicators
  • Details for the Energy and Water Ombudsman to be included on bills
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MICHELE WACHLA

Michele is an accomplished social services professional with a dual background in Social Work and Business, bringing over 18 years of experience to her work. She has developed a deep understanding of the unique challenges and opportunities within Regional, Rural, and Remote (RRR) environments, particularly in South Australia. Michele is a recognised leader, known for her expertise in designing and implementing place-based initiatives that address the complexities of RRR communities. Her work is underpinned by strategic planning, effective resourcing, and a strong focus on policy review and advocacy to ensure that services remain relevant, equitable, and sustainable. Michele’s commitment to community-centred approaches drives meaningful outcomes, nurturing resilience, and growth across regional South Australia.

KHATIJA THOMAS

DAVE ADAMSON

Dave moved to Australia following a 30-year academic career in the UK. He has since worked in the Community Housing sector and authored the 2016 Towards a National Housing Strategy, and helped to establish the Everybody’s Home campaign. He also researches the interface between poverty and climate change and actively supports the United Nations Sustainable Development Goals. He has worked with government at all levels and has experience of policy development and evaluation. He is co-author of Sustainable Places: Addressing Social Inequality and Environmental Crisis (2022, Routledge). In his spare time he plays and builds guitars.

ROHAN FEEGRADE

Rohan is an experienced and forward-thinking CEO, senior executive and board director with demonstrated expertise across the not-for-profit, private and government sectors. Currently CEO of Lutheran Care, he has proven record for creating substantial organisational, stakeholder and client value, and has extensive experience in strategically positioning organisations for transformational change and growth within the health, disability, education and community service sectors. Rohan is a socially responsible professional, genuinely passionate about creating opportunities for people who live with disadvantage and disability, always acting ethically to serve those he works with and for.

JANE MUSSARED

Jane has worked in for purpose and government health and human service settings throughout her career. In June 2024 she returned to SA and joined the Maggie Beer Foundation as CEO following 20 months based in Canberra as an Advisor to the Federal Minister for Health and Aged Care. Previously she was Chief Executive of COTA SA and before that an executive of ACH Group. Jane served on a range of boards and committees prior to moving to Canberra, including the SACOSS Policy Council until 2022, as chair of the South Australian Circus Centre and as a non-Executive Director with the Maggie Beer Foundation.

NANCY PENNA

Nancy has than 30 years of experience in South Australian community services, and a a unique understanding of the political and social landscape and the issues and opportunities facing South Australia. Currently responsible for the strategic and operational oversight of AnglicareSA’s community services portfolio, she has previously held executive roles in government within child protection and disability, with her executive experience underpinned by her earlier career as a social worker in child protection and youth justice. She is also Chair of the Child and Family Focus South Australia (CAFFSA) Board and most recently on the Housing Security for Older Women Taskforce.

NICOLE CHAPLIN

Nicole is a dedicated and experienced youth support professional, specialising in solutions for disadvantaged young people in South Australia. As CEO of St John’s Youth Services, she oversees innovative programs like youth110 and Foyer Port Adelaide. With over thirty years in the community sector, Nicole has built extensive networks and her expertise spans governance, service delivery, policy development, and partnerships. Recognised with the 2018 AHI Inspirational Leader Award, Nicole is an active participant in housing and homelessness networks. She holds leadership roles in various organisations, including Anglicare Australia’s National Reconciliation Network.

EMMA CROSBY

Emma is a chartered Accountant with more than 15 years experience as a board member, finance and business professional, strategic advisor and company secretary. She has strong values and a passion for enabling and leading organisations to meet its operational and strategic direction through long-term financial sustainability, operational efficiency, innovation, leadership, transformation and partnerships. As Treasurer and Board member at SACOSS, she is committed to successfully leading and making a purposeful impact to the organisation and its stakeholders.

David PANTER

David has worked in health and social care for almost 45 years, over half of which has been as a Chief Executive. In the UK he initially worked in the NHS and more latterly in local government, where he was Chief Executive of Brighton & Hove City Council. In 2004 David was recruited to the South Australian public health system for over 10 years leading reforms including the development of the new Royal Adelaide Hospital. From 2015-2022 David was the Chief Executive of not-for-profit aged care provider ECH. At the end of January 2022 David became the Chief Executive at Minda, SA’s largest provider of services to people living with an intellectual disability.

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