The Water Efficiency Labelling and Standards (WELS) scheme is Australia’s mandatory water-saving program. Since its introduction in 2005, the WELS water rating label has helped consumers make informed purchasing decisions at the point of sale, delivering substantial benefits to consumers and industry while supporting national water security.
As part of the 2026-27 Budget, the Australian Government considered stakeholder feedback on WELS cost recovery, the Australian Government Charging Framework, and the broader fiscal environment. The Government determined that fees would increase annually from 2026 to 2029 as part of a transition to full cost recovery, with partial Government funding during this period.
This decision was designed to secure the long term viability of the WELS scheme, which continues to deliver significant water savings, lower household bills and national consistency. The revised fees support the sustainable administration of the scheme and enforcement activities that protect industry investment in regulated products.
To implement this decision, legislation has been drafted and a Cost Recovery Implementation Statement prepared. The Exposure Draft of the Water Efficiency Labelling and Standards (Registration Fees) Amendment Determination 2026 (Amendment Determination) shows the proposed legislative amendments. The Amendment Determination can be compared against the current Water Efficiency Labelling and Standards (Registration Fees) Determination 2013 to provide broader context for the proposed changes.
Stakeholders are invited to provide input on the proposed changes to the WELS cost recovery arrangement through this consultation process.
Review the Exposure Draft of the Water Efficiency Labelling and Standards (Registration Fees) Amendment Determination 2026.
Read the draft 2026-27 Water Efficiency Labelling and Standards Cost Recovery Implementation Statement.
Lodge a submission through this consultation platform.
Submissions are due by 5:00pm AEDT on Friday, 17 July 2026.
From 8 December 2025 to 20 February 2026, stakeholders were consulted on a WELS cost recovery discussion paper, which presented options for WELS scheme fee changes. Twenty three survey responses and written submissions were received from businesses and industry representative groups.
Feedback indicated that businesses were concerned about the impact of rapid or substantial fee increases on cash flow, and the ability to adjust product pricing structures at short notice. Partial cost recovery was viewed favourably, as it moderated short-term impacts and provided sufficient time for adjustment.