South Australia Government to Look at Legal Options Against Developer

ABC Riverland

Topic: Urban Development and Planning

Tuesday, 21 July 2026, at 10:15 am

Tuesday, 21 July 2026, at 10:29 am

The Premier of South Australia, Peter Malinauskas, says the government should look closely at clauses that let developers stop contracts.

In short:

The South Australian Commissioner for Business Services will look at the state's legal options to hold the developer, Wel.Co, accountable for stopping 75 contracts at a housing development in Gawler East. The government also wants to make sure similar situations do not happen again.

The Premier of South Australia, Peter Malinauskas, says the government will also look at changing the law to prevent similar situations.

What's next?

Wel.Co says it is still talking to the Town of Gawler Council and will continue with other planned developments. The company will also proceed with other projects.

The South Australian cabinet has allowed the Commissioner for Business Services to look at all legal options to hold Wel.Co accountable.

Wel.Co stopped 75 contracts with homebuyers for stages eight and nine of its Springwood Estate at Gawler East last week.

The company said changes to the planning of the area, including roads and infrastructure, meant it could no longer deliver the affected stages as originally planned.

Wel.Co said what was expected to be a local road is now planned to be a major road with more traffic.

This change affects the living environment for homes in the development.

The issue only affects stages eight and nine of Springwood, and Wel.Co's other projects are continuing as planned.

Nick Champion said a larger roundabout and road will be added to the Springwood development area.

The South Australian Planning Minister, Nick Champion, said the contracts were stopped without a good reason.

The state government's actions did not cause the company to stop the contracts.

Developers should be held accountable

Premier Peter Malinauskas said the situation shows that clauses allowing developers to stop contracts should be looked at closely.

If developers stop contracts for unfair reasons, they should be held accountable.

The government will look at changing the law to regulate this type of practice and explore legal options.

The government will not allow developers to take advantage of people.

This behavior is not fair.

Wel.Co said it is still talking to the Town of Gawler Council about planning for stages eight and nine of Springwood.

There are concerns about other developments

Wel.Co has a contract to develop about 800 new homes in the Riverland town of Renmark.

The development is an extension of the existing Jane Eliza River Estate and will include a marina and marine industry precinct.

Some locals are worried about the stability of the Jane Eliza development after the issues at Springwood.

A Renmark resident, Craig Leuders, has opposed the development since it was proposed and is concerned the developers will stop it after a certain stage.

Craig Leuders said he thinks the same thing will happen with the Jane Eliza development.

He is not against development, but it should not harm existing residents.

Craig Leuders has opposed the Jane Eliza extension since it was proposed.

Wel.Co said the Jane Eliza development is separate from Springwood and in a different planning area.

The company said it is not fair to compare Jane Eliza to Springwood.

The Jane Eliza project is still going through the planning process, and Wel.Co is excited to bring it to the Riverland.

The Renmark Paringa Council started working with Wel.Co on the Jane Eliza development in July 2022.

The council is working with Wel.Co on the Jane Eliza extension in the Riverland region.

The council did a study on the development area in 2025 and found it would not significantly affect the flood plain or the community.

The council chief executive, Tony Siviour, said there is no reason to think the issues with Springwood will affect the Jane Eliza project.

The Jane Eliza project is important for the Riverland, providing housing for the growing community and workforce.

The council is committed to working with Wel.Co to deliver the development.

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