Essential services undergo cost recovery review

Water, Waste and Renewable Economy

The future of essential services including water, wastewater and waste management are being secured through strategic investment and alignment with government rules in Bundaberg Regional Council’s 2025-2026 budget.

These significant operations underwent a review to ensure they were meeting the Queensland Government’s requirement for Council’s the size of Bundaberg Regional Council to charge full-cost pricing.

Full-cost pricing, as defined by the Queensland Treasury Corporation, requires that revenue generated meets the full cost of providing the service, not just the day-to-day operating cost.

This full cost includes return on assets, depreciation, operating expenses and tax equivalents where applicable.

Water, Waste and Renewable Economy portfolio spokesperson Cr Gary Kirk said the independent review identified that charges for these services in the Bundaberg Region needed to be realigned to meet those government requirements.

“Our focus is on delivering essentials and it doesn’t get more essential than turning your tap on to find fresh water or leaving your waste and recycling bins on the kerbside for collection and flushing the toilet,” Cr Kirk said.

“They each take up a single line in a rates notice but water, wastewater and waste management are multi-million dollar services which residents use each and every day.

“We have reviewed our rating of these utilities to ensure the services remain sustainable and we can secure these operations for our region into the future, while maintaining quality and standards.”

In waste management, the utility charge will this year increase by 9.5% to cover the increasing costs of delivering the service, including the State Government waste levy.

“The State Government will begin reducing its subsidies for residential waste, shifting the cost of the waste levy to residents.

“This year that’s an additional $1.3 million impact for the Bundaberg Region.

“When fully implemented in 2030-31 this will increase the cost of waste disposal by $4 million each year.

“Council also needs to make additional investments in its waste facilities to administer the waste levy which in the 2025-2026 financial year will see work begin to install a dual weighbridge at the Bundaberg Waste Management Facility.”

Water and wastewater charges are also set to increase by 3.5% and 9.5% respectively.

The increases in wastewater charges reflected the need to bring these charges in line with the State Government rules around full-cost pricing.

Cr Kirk said, with the growth being experienced in the region, it was critical to have strategic investment in essential infrastructure.

“We’re investing in wastewater treatment plant upgrades in Millbank and Childers in the next financial year and there is significant planning underway to further develop our water network.

“We’ve seen high population growth in recent times which has escalated the need for this planning, particularly when it comes to extending our network into growth areas like Elliott Heads, Childers and Branyan.

“Ensuring water security for our region is a high priority for Council and will allow us to continue delivering essentials for our community.”

Find out more about the 2025-26 Budget here: Budget | Bundaberg Regional Council