Local Government NSW (LGNSW) has welcomed the release of a NSW Parliamentary Inquiry report into the ability of the state’s councils to fund infrastructure and services.
The Legislative Council’s Standing Committee on state development has been holding an inquiry into the financial sustainability of councils, receiving over 130 submissions and holding 10 public hearings.
LGNSW President, Darriea Turley AM said she was delighted to see that the recommendations of the inquiry closely aligned with the submission from LGNSW and with submissions from local councils right across the state.
“This is a wonderful outcome for councils and their communities. LGNSW has long advocated for more support from both the state and federal governments to ensure the financial sustainability of local councils is secured,” President Turley said.
“The recommendations contained in the report demonstrate that the inquiry heard our call,” she said.
“They reflect recognition that the financial sustainability of councils is being persistently eroded and that, without improvements, all communities will suffer.
“We’re hopeful that this recognition will pave the way for much-needed improvements.
“We thank the NSW Government for holding this inquiry and now call on them to act on these recommendations, in close partnership with councils, to achieve better sustainability, resilience and productivity outcomes for all NSW communities,” she said.
Key recommendations include:
- Reviewing rate exemptions and concessions to achieve a better balance between local council financial sustainability, community benefits and principles of equity;
- Redesigning the rating system to provide councils with greater flexibility in setting rates, while keeping rates affordable for the community;
- Streamlining the special variation process;
- Advocating to the Australian Government to increase Financial Assistance Grants to councils from 0.5% to 1% of Commonwealth taxation revenue;
- Grant models that are more secure, sustainable and predictable;
- Changes to the developer contributions framework to better support councils to fund the ongoing costs of new infrastructure, and support development including of community facilities;
- More timely disaster recovery assistance to councils;
- Dedicated and ongoing funding streams for disaster mitigation and preparedness;
- Incorporation of betterment into disaster recovery funding programs;
- Appropriately recognising that Rural Fire Service assets are vested in the NSW Government, and not councils;
- Reducing cost shifting onto councils and consideration of how the Waste Levy can better support infrastructure and services that support the transition to the circular economy.
