From the 1st July 2026, owner-occupier water bills are expected to rise by approximately 5.5%. Rental tenants are expecting a 2% increase in their annual water costs.
These increases are still under review by the Essential Services Commission, with public submissions closing on 1 May 2026. Expected water bill increases will offset service upgrades.
How to Audit Your Home Water Use
You can perform a home water audit by reviewing your utility bill, installing WELS-rated appliances, and monitoring your water usage, as well as identifying leaks.
Water Efficient Appliances
WELS-rated appliances (Water Efficiency Labelling and Standards) include shower heads, taps, toilets, washing machines and dishwashers.
The system is rated by blue stars, with 6-stars being highly efficient, which can significantly reduce your water usage and therefore costs. Using 5 and 6 blue star-rated appliances can translate into significant savings of between 40-50% on your water bill.
Review Your Water Bills
By reviewing your water rates notice, you can compare your own quarterly readings against the invoiced amount.
Check when your water supplier does meter readings. If your own comparisons aren’t consistent with what you’re being invoiced for, then request an adjustment from your supplier. If there is an identifiable hidden leak, then your water supplier may also be able to provide you with a rebate or reduction.
Check for Leaks
Take the following steps to conduct your own water leak test.
Firstly, turn off all your appliances and taps that use water. Take a note of your current water meter reading or the position of the red flow indicator on the dial.
Wait for at least 15-30 minutes before using any water. Waiting longer (even overnight) will more likely show if there are very small leaks present. Put food colouring in the toilet cistern (not the bowl). If colour appears in the toilet bowl after 10-15 minutes, without flushing, your toilet is leaking.
To see if there are any other leaks, re-check your meter after not using water. If the meter reading has increased or the red flow indicator has moved, you have a leak.
Locate the Source of the Leak
If you are concerned about a leak, you can either work with leak detection services from Melbourne or do your own leak investigations.
Internal Water Leaks
In addition to checking the toilet, check for any dripping taps or fixtures.
If your hot water system is leaking, you will find water near its base. A single trickling tap or leaky toilet can waste up to 6,000 litres of water in a month, if left unchecked. Depending on how you are charged, this one small leak could add another $120 to each quarter’s bill.
External Water Leaks
Outside sources of water leaks include external taps, sprinkler systems, evaporative coolers, hose connections, underground pipes and pools and spas. If you have an evaporative air-conditioning unit, whether internal or external, ensure that this is serviced regularly (at least annually).
If you notice excessively green patches or soggy ground in your yard, this may indicate an underground pipe leak or a faulty sprinkler system. Often, the most expensive water is the water you never use. Roughly 9% of household water is lost to tiny, silent leaks in underground pipes or from toilets. For a suspected underground pipe leak, contact a licensed plumber or a specialist leak detection service, like The Leak Detector.
Inspect external taps, pool pumps and filters for signs of dripping or water loss. Solutions may be simple. For example, tap faucet washers can be replaced. For faulty sprinkler systems, first clean the nozzle filter; if the leak persists, replace any damaged parts.
Pool Fixture Leaks
Correcting pool fixture leaks can be more involved. If you suspect any water is leaking from a pool pump or filter, turn off the pump to prevent any possible damage.
Common leak solutions include: tightening the clamp or cleaning or replacing the O-ring (two separate components with different functions), applying silicone gels to internal plastic or rubber-only components, or replacing any faulty valves. Ask your local pool shop for further guidance on how to check and fix possible pool fixture leaks.
Next Steps
Even in the face of rising water costs, there are several ways to better manage your water bill.
First, identify and correct any leaks or faults. Once this is complete, the next step is to replace old, inefficient appliances with water-efficient models.
The Victorian Government has the Energy Upgrades (VEU) and Community Rebate (CRP) programs, which provide significant rebates for consumers switching to water and energy-efficient household items.
