The DEC for water and sewerage infrastructure in Queensland is projected to increase by 67 per cent from $2.4 billion in 2011 to $4.1 billion in 2031. The Audit identified that 176 GL of water was supplied to South East Queensland in 2011, and 777 GL to other regions. A total of 277 GL of sewage was collected in South East Queensland in 2011, and 93 GL in other regions.
The highest projected growth in water and sewerage DEC is in South East Queensland (comprising greater Brisbane, the Gold Coast and the Sunshine Coast), where DEC is projected to grow from $1.8 billion in 2011 to $2.8 billion in 2031. In the regional areas DEC is projected to increase from $0.7 billion to $1.3 billion over the same period.
It is important to note that water and sewerage services have historically been under-priced, particularly in regional areas, and that this potentially leads to an understatement of DEC as measured by the National Water Commission data (and as incorporated into the national accounts and GDP numbers). In regional areas the under-pricing of water and sewerage services means that the return on the capital base is a long way below the level needed to fund the full replacement cost of assets.