Sydney water bills set to soar as migration drives demand, regulator says

Sydney households will face a 13.8% increase in average water and wastewater bills in 2025–26, with charges rising from about $1,220 to $1,388, according to the Independent Pricing and Regulatory Tribunal (IPART).

The regulator said the higher charges are needed to fund the expansion of pipes, reservoirs and treatment facilities, meet environmental standards and deliver services to fast-growing suburbs. By the end of the decade, annual bills are projected to reach about $1,695.IPART has also urged the NSW Government to extend rebates for concession card holders and low-income households as part of its recommendations.

Greater Sydney has swelled by more than 326,000 people since 2021, with migration driving record demand for water and other services.

Overseas migrants account for more than 80% of the population growth in Sydney and Melbourne. In Sydney, 120,886 overseas migrants moved in during the last financial year, making up 81% of the net population increase. In Melbourne, 121,240 migrants moved in during the same period, comprising about 80.7% of growth. Separately, 41,086 Sydney residents left the city for other parts of Australia over the year to escape congestion and unaffordable housing.