Water Connection Savings Should Benefit New Homeowners

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Small to medium sized developers are being urged to pass on the savings from a cut in developer charges to South Australians looking to buy a new home.

SA Water has cut the cost for developers wanting to subdivide a block and establish a new water and sewerage connection, with property owners able to save $3,000 on average per allotment.

“We want to make it easier and more affordable for South Australians to own their own home, and this is a significant saving that should be passed on to new homeowners,” Deputy Premier and Minister for Planning John Rau said.

“In total, developers across the State could save up to $5 million a year as a result of these changes, which should provide a significant incentive to both developers and people looking to buy a new home.

“We’re calling on those developers who will benefit from these changes to pass on this saving to new home buyers, and encouraging those in the market for new homes to ask developers about the cost reduction.”

Minister for Water Ian Hunter said the revised charging model was aimed at supporting the housing and construction sector.

“Previously, a Standard Capital Contribution Charge has been required upfront to cover the cost of infrastructure to service the allotment,” he said.

“This charge has now been removed, with SA Water now also contributing half of the material costs for all network extensions where that development benefits other customers.

“These changes will cut costs for new home buyers while providing a transparent and consistent charge for all developers seeking new connections.”

Minister Hunter said the new charges will come into effect from the beginning of July.

“SA Water will also be consulting with developers on other charges and agreements, in a bid to streamline services and charges,” he said.

“As part of this consultation, SA Water will work with the industry to review other elements of developer charges including individual developer agreements, upsizing agreements and augmentation charges.

“SA Water will also seek the views of industry on how they interact with SA Water, what their future requirements may be and how development application processes can be improved.

“It’s important we review these policies and hear the views of the industry to improve the services that SA Water delivers.”

The review will begin this month and be conducted over the next 12-18 months.

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