SA government to explore legal options against developer

SA government explores legal options against developer as Wel.Co commits to ongoing projects Tue 21 Jul 2026 at 10:15am In short: The SA Commissioner for Business Services will examine the state's legal options to hold developers Wel.Co to account after it axed 75 contracts at a housing development at Gawler East. SA Premier Peter Malinauskas says the government will also assess legislative options to ensure similar situations do not happen again. What's next? Wel.Co says it is continuing discussions with the Town of Gawler Council and will proceed with other planned developments. South Australia's cabinet has authorised the SA Commissioner for Business Services to undertake "active examination of all of the legal options" to hold developers Wel.Co "to account". The national company axed 75 contracts with homebuyers for stages eight and nine of its Springwood Estate at Gawler East last week. It said changes to the planning of the broader area, including roads and infrastructure, meant the affected stages "could no longer be delivered as purchasers had originally contracted". "What was originally expected to operate as a local road is now planned to become a major distributor road carrying substantially more traffic," Wel.Co said in a statement. "That fundamentally changes the living environment for the adjoining homes [in the development]. "This issue is isolated to Stages 8 and 9 of Springwood [and] Wel.Co's broader project portfolio continues to progress as planned." SA Planning Minister Nick Champion told 891 ABC Adelaide's Rory McClaren on Friday the contracts were cancelled without "real justification". "Nothing the state government's done in the provision of infrastructure in any way would lead to this decision by this company," Mr Champion said. 'Deserve to be held to account' Premier Peter Malinauskas said the situation had demonstrated clauses that allow developers to walk away from contracts should be closely examined. "Where actors seek to tear up contracts for purposes that aren't consistent with what they say, then they deserve to be held to account," he said. The premier said the government would assess its legislative options to "regulate this type of practice" alongside exploring the available legal options to respond. "Unless the contracts are reinstated … I've made it crystal clear that I expect the commissioner … to examine all our options here,"Mr Malinauskas said. "What we won't abide by is people participating in this particular industry and doing over hardworking mums and dads in the process. "It doesn't accord with basic decency." In a statement, Wel.Co said it was continuing discussions with the Town of Gawler Council "regarding planning matters" for stage eight and nine of Springwood, but said it would be inappropriate to comment further at this time. Concern for other developments More than 200 kilometres away in the Riverland town of Renmark, Wel.Co also holds a contract with the Renmark Paringa Council to develop about 800 new homes. It is an extension to the existing Jane Eliza River Estate and is also expected to deliver an expanded marina and marine industry precinct. Following the issues at Springwood, some locals are concerned for the stability of the Jane Eliza Development. Renmark resident Craig Leuders has opposed the development since it was proposed about a decade ago because of concerns about the site and said he was concerned the developers would pull out after a certain stage. "I think the same thing is going to happen here," he said. "I'm not against development, Renmark's ready to grow, but not at the cost of the other people that are already here." Wel.Co said Jane Eliza was separate to Springwood and in a different planning jurisdiction. "It would not be appropriate to draw comparisons with Springwood," the company said. "The project continues to progress through the planning process, and Wel.Co remains excited to bring Jane Eliza to the Riverland." Renmark Paringa Council began working with Wel.Co on the Jane Eliza development in July 2022 and entered into a Land Facilitation Agreement in March 2025. The council commissioned hydrology modelling on the development area in 2025, which found the extension would not significantly impact the flood plain or the wider community in the event of future flooding. "At this stage, council has no reason to suggest the issues reported in relation to the Springwood development have any impact on the Jane Eliza project," Renmark Paringa Council chief executive Tony Siviour said in a statement. "Jane Eliza remains a fundamental project for the Riverland, delivering much needed housing opportunities to support our growing community and workforce. "Council remains committed to working collaboratively with Wel.Co to achieve the successful delivery of this development."