31 May 2012

Water Corp floods State with $1b

The State Government stands to reap $1 billion annually from the Water Corporation within five years, highlighting the profitability of one of Australia's largest monopoly service providers.

State Treasury forecasts suggest the publicly owned utility's contribution to the Government will increase from $590 million next financial year to $1.036 billion by 2015-16.

The amount of money flowing into Treasury's coffers as a dividend, which is calculated at 85 per cent of the Water Corporation's after-tax profit, is slated to jump from $375 million to $659 million.

Local government rates paid by the corporation will rise to $5.2 million, while the amount it forks out as an equivalent of the 30 per cent tax rate will leap from $209 million to $371 million.

In comparison, the combined revenue to Government from the State's four power utilities is expected to rise from $450 million to $668 million over the same period.

The figures, contained in this month's State Budget, are likely to increase pressure on the Government following a 43 per cent increase in water prices since it won office in 2008.
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