Maximum interest rate payable on overdue water bills from 1 July 2026

The maximum interest rate that water businesses may charge their customers on unpaid water bills from 1 July 2026 to 30 June 2027 will be 6.0 per cent per annum. 

The commission sets the maximum interest rate to ensure that charges for late payments remain fair and reflect the reasonable cost to water businesses of unpaid bills, without placing undue financial pressure on customers.

This is a slight increase on the maximum interest applied to the amounts customers owe in 2025–26 (which is 5.7 per cent until 30 June 2026).

The 2026–27 increased rate is due to changes in interest rates across the economy. This reflects ongoing inflation pressures and global economic conditions.  

Some customers are exempt from paying interest on their overdue bills

Under our Water Industry Standards, Victorian water businesses must not charge a residential customer interest on outstanding amounts if the customer: 

• holds an eligible concession card 
• is on a payment plan
• receives assistance under a water business’s customer support policy. 

We encourage customers to contact their water business to check eligibility. See our website for more information.

The new maximum interest rate for overdue water bills takes effect from 1 July 2026.