Grants to Local Gov = many cuts forecast

FINANCIAL GRANTS TO LOCAL COUNCILS

Member for Northern Tablelands Brendan Moylan has called on the NSW Government to provide greater transparency around proposed changes to the allocation of Financial Assistance Grants for local councils.

The State Government is currently reviewing the methodology used to distribute Financial Assistance Grants, with a new funding formula proposed to take effect from the 2027-28 financial year. Under the proposed changes, some regional councils could receive significantly less funding, with reported reductions ranging from 10 to 50 per cent.

Mr Moylan said mayors and general managers across regional NSW had raised serious concerns about the lack of information provided to councils about how the changes have been calculated and the potential impact on already stretched local government budgets.

“The feedback I’ve received from local councils, not just in the Northern Tablelands but right across regional New South Wales, is that there has been very little transparency about how these Financial Assistance Grants have been calculated,” Mr Moylan said. “Some councils appear set to benefit from the proposed changes, while others stand to lose millions of dollars, yet there has been little explanation as to how those outcomes have been determined.

Many councils have also expressed concern that the proposed methodology places too much emphasis on population based revenue measures, potentially disadvantaging rural and regional councils with small populations but extensive road networks and large geographic areas to maintain.

Mr Moylan said Gwydir Shire Council was one example of a council that will be negatively affected if the proposed changes proceed.