Upper Hunter Shire Council today welcomed the release of the Office of Local Government’s latest audit figures on NSW Councils Your Council Report 23/24, saying it clearly shows the disparity between rural NSW and the metropolitan areas.
The Council is seeking stronger financial support for country councils from both the State and Federal Government.
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Deputy Mayor, Pat Ryan (pictured) said regional councils faced unique financial challenges due to their vast service areas, rising costs, and declining funding support.
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“Upper Hunter Shire Council covers over 8,000 square kilometres yet has a population density of just 1.77 people per square kilometre. That means we are maintaining thousands of kilometres of roads and delivering essential services to small, spread-out communities with a limited ratepayer base. The financial pressures on country councils are real and growing,” Cr Ryan said.
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Council’s Operating Performance Ratio of -24.8% and net operating result of -$15.53 million before capital grants reflect the impact of rising infrastructure costs, increased depreciation, and insufficient external operational funding.
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Despite these challenges, 26% of Council’s budget is dedicated to roads, bridges, and footpaths – the highest of any council in the Hunter region, the Deputy Mayor said.
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“Our community relies on a well-maintained road network, but the cost of keeping it up to standard is significant. Unlike metropolitan councils, we don’t have public transport alternatives—our residents need safe and reliable roads to access work, school, and essential services,” Cr Ryan said.
“You don’t have to look too far through the OLG’s report to see country councils are struggling compared to our city cousins. The funding model clearly requires change.
“I am confident that this council has made significant changes in the last four years to address this inequity by cutting costs, finding new sources of revenue and identifying opportunities to mitigate the impact of non-performing assets, but without sufficient Federal Government funding this Council will have no choice but to increase rates or reduce services”.
Council is supporting the NSW Country Mayors Association’s call for the Australian Government to restore Financial Assistance Grants (FAGs) to 1% of Commonwealth taxation revenue, up from the current 0.5%.
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Cr Ryan said the upcoming Federal Election presents an opportunity for regional councils and their residents to advocate for a fairer funding model.
“This upcoming election is an opportunity for all residents to send a message to the Federal Government that the people in the bush want their fair share.”
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In addition, Council has applied for a Special Rate Variation in 2025 as part of its strategy to maintain financial sustainability and continue delivering essential services.