Water and sewerage bills will increase by about $62 each year for 1.6 million South East Queensland residents, despite the state government freezing bulk water charges.

Urban Utilities revealed its typical household water and sewerage bill would increase from July 1 by about the same amount the government this week claimed Queenslanders would save.

The water provider revealed on Wednesday its water and sewerage charges would increase 5.5 per cent, or about $62 each year.

The water and sewerage bill increase comes after Premier David Crisafulli announced on Sunday households would save $65 each year over two years through the government’s freezing of the bulk water charge.

He argued it was a key cost of living measure in the LNP’s second budget.

Urban Utilities said the bill increase was due to rising operational costs.

Water Minister Ann Leahy issued a swift smackdown of the government-owned water corporation.

“This move to increase Urban Utilities rates by 5.5 per cent is unacceptable after we did our bit to freeze bulk water prices,” she said.

“Urban Utilities need to walk back their price hike and freeze prices for customers. We expect Unity Water to do the same.

“If they don’t freeze prices, we will examine legislative options to force them to.

“Queenslanders will not accept continuing to pay some of the most expensive water bills in the nation.”

Usage costs up to 822L will rise from 98c to $1.19 per kilolitre.

The sewerage service charge rises from $1.96 to $2.15 per dwelling, per day.

A typical annual household water bill was $1667.45 in 2025.

Urban Utilities provides water to 1.6 million residents across the Brisbane, Ipswich, Lockyer Valley, Scenic Rim and Somerset local government areas.

“Pricing decisions are made by our independent board, balancing bill affordability with the need to continue to invest in and maintain the essential infrastructure required to deliver safe and reliable water and wastewater services to the community,” a spokeswoman said.

“We welcome the Queensland Government’s decision to freeze the State Bulk Water Charge which has helped minimise the increase for customers.

“The remainder of the bill reflects the cost of operating, maintaining and upgrading Urban Utilities’ water and wastewater network, including investing in essential infrastructure needed for South East Queensland’s growth.”

Opposition Leader Steven Miles said Mr Crisafulli’s budget promises had collapsed in less than a day.

“The Premier’s budget has failed to provide cost of living relief and its Queenslanders who are paying more,” he said.

“The Premier has now admitted power prices were going up and now it’s been confirmed water prices are increasing too.”