The Queensland Competition Authority (QCA) has been asked by the Water Minister to set rural water charges for 2027–28 and 2028–29 using a Regulated Asset Base (RAB) approach instead of the historical Annuity approach.

The Queensland Farmers’ Federation (QFF), of which Cotton Australia is an active member, secured funding for an independent consultant to assess which method for funding capital renewals is best for Queensland irrigators.

The report looked at six schemes and found that the RAB approach can save costs in the short to medium term but is significantly more expensive over the long term. It also found that the Annuity approach gives a smoother price path, aligns better with the Queensland Government’s Lower Bound pricing commitment, and provides fairer outcomes across generations.

Based on this evidence, Cotton Australia will tell the QCA that it supports continuing the Annuity approach. Cotton Australia also encourages all irrigation customers of Sunwater and Seqwater to make a short submission to the QCA. Submissions close on Tuesday, 7 April.

To help, you can find a summary comparing the Annuity and RAB approaches, prepared by QFF, and a slide pack from Cotton Australia.

See the full details of the review.