TasWater's net debt to equity rose from 45.4% in FY 2023-24 to 56.3% in FY 2024-25, the year its total capital expenditure reached A$371.7 million, up from A$269.2 million a year earlier.
Less capital than it asked for
On 30 April 2026 the Tasmanian Economic Regulator approved A$1,175.1 million of capital expenditure for 1 July 2026 to 30 June 2030. TasWater had proposed A$1,573.5 million after its own A$100 million efficiency target. The allowance is 36.3% more than the previous period, but about 75% of the request.
The Regulator also allowed average price rises of 5.7% a year, against 11.5% under TasWater's September 2025 update, and rejected its plan to defer A$127.5 million of revenue to the following period.
Spending above allowance
Over 2022–2026 TasWater expects to have spent A$938.8 million against an allowance of A$861.9 million. The capital reviewer found renewals spending 88% above the pro-rated allowance and compliance spending 10% below.
Pressure from owners and politics
Councils received A$24 million in dividends in each year from FY 2021-22 to FY 2024-25. On 10 September 2026 Premier Jeremy Rockliff asked TasWater and councils to pause the new price increases. On 2 October TasWater said it would revise steep new sewerage charges for some non-residential customers; it has said the cost will be absorbed and may require deferring some infrastructure investment.
TasWater told the Regulator in June 2025 that it could not keep an investment grade credit rating on its proposed revenue if it carried the 60% benchmark gearing the Regulator assumes.
Which programs are most exposed to the trimmed allowance, how the asset base was corrected by A$148.3 million, and what the shift to regional wastewater systems requires are covered in the full report. The full report, Water Utility of the Future: TasWater, is available for USD 499. For a free overview, read the TasWater Utility Snapshot.