COST OF LIVING UP, WATER INFRASTRUCTURE DOWN IN LABOR’S THIRD BUDGET

27 June 2025

The 2025–26 NSW Budget has highlighted the Minns Labor Government’s continued failure to invest in the critical water infrastructure required to support its housing agenda.

Despite claiming housing as its top priority, the budget lacks significant investment in the new water infrastructure projects to support the construction of new homes in Greater Sydney and regional NSW.

Shadow Minister for Water Steph Cooke said the NSW Government’s third budget had again demonstrated a lack of understanding of the infrastructure required to make new housing feasible.

“Ahead of delivering the budget, the Treasurer claimed that this would be a budget centred around ‘pipes and poles’,” Ms Cooke said.

“So, to hear just one mention of water in his speech and to see the underwhelming investment into critical water infrastructure is a massive blow to NSW residents.”

“You cannot build homes without providing the water services that make them liveable.”

“Every new dwelling requires access to clean drinking water, sanitation, and reliable supply. This budget simply does not deliver that.”

The budget follows a series of troubling developments in the water sector, including the likely 6 per cent increase in Sydney water bills next year.

Without intervention from IPART, that rise would be closer to 18 per cent plus inflation.

“The Premier and Treasurer promised lower water bills when they pledged to protect Sydney Water from privatisation,” Ms Cooke said.

“Yet, three state budgets later, families are being asked to pay more for less.”

IPART’s draft determination has also left a $6b shortfall in Sydney Water’s capital works program, with little detail from the Government on how that gap will be addressed.

“This Government lacks the vision to maintain, let alone expand, the water infrastructure we already have,” Ms Cooke said.

“With a $6b backlog, communities are rightly asking what projects will be cut and which growth areas will miss out?”

Ms Cooke also criticised the NSW Government’s failure to provide any new funding for the Safe and Secure Water Program which is an essential source of support for regional and rural towns in need of upgraded water and sewerage systems.

“Millions of dollars of vital water infrastructure projects have stalled because the NSW Government has failed to provide the funding that local councils need,” Ms Cooke said.

“It’s a bitter blow for councils that have spent years preparing business cases and advocating to the NSW Government for long-awaited upgrades.”

“Of the 377,000 new homes to be delivered in New South Wales under the National Housing Accord, 55,000 must be delivered in regional areas. Where is the enabling infrastructure investment to make this a reality?”

Councils in growth areas and developers across NSW have expressed frustration at the lack of infrastructure coordination.

“The Government talks a lot about housing, but there has been inadequate investment in the infrastructure that actually makes housing viable,” Ms Cooke said.

“Yesterday’s budget proves once again that the rhetoric isn’t matched by delivery.”

“At the end of the day, it’s first home buyers and families stuck in rental queues who are paying the price for this Government’s failure to deliver.”