Analysis

Ministers, Not a Regulator, Set Water Corporation's Prices: Charges Rose 2.75% in 2026-27

The WA Government raised Water Corporation's charges 2.75% for 2026-27, below 3.75% forecast inflation. Revenue was A$4,005.2 million in FY 2025-26, with a A$668.2 million operating subsidy reported.

Western Australia's Government raised Water Corporation's water use and service charges by an average of 2.75% for 2026-27, below forecast inflation of 3.75%. Prices are reviewed and set each year through the State Budget process and published in regulations.

How the State steers the utility

Water Corporation is a Government Trading Enterprise under the Government Trading Enterprises Act 2023. The Minister for Water appoints its Board, and transactions over A$25 million need approval from the Minister and the Treasurer unless they fall within an approved exclusions framework. Hon Daniel Pastorelli became the responsible minister after joining Cabinet in July 2026.

Money flowing both ways

The utility reported total revenue of A$4,005.2 million in FY 2025-26, and its five-year summary reports an operating subsidy of A$668.2 million. Its FY 2023-24 Statement of Corporate Intent set a dividend payout ratio of 85% of after-tax surplus, but in November 2025 the Government deferred the 2025-26 interim dividend. The final dividend is payable by December 31, 2026.

Where the regulator fits

The Economic Regulation Authority licenses Water Corporation under licence WL32, renewed for 25 years from March 31, 2021. Its 2025 asset management review, published March 31, 2026, found 10 deficiencies, seven linked to resource constraints, and required an action plan. The next review is due in 2028.

Questions the report answers

How these institutions divide responsibility for Perth's water sources, how the 2026-27 State Budget's A$166.7 million maintenance allocation fits the regulator's findings, and what Water Corporation's infrastructure and service results show are covered in the full report. The full report, Water Systems Overview: Water Corporation, is available for USD 499. For a free overview, read the Water Corporation Utility Snapshot.

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