Local Government NSW (LGNSW) President, Darriea Turley AM, says she is pleased to see several commitments that align with LGNSW priorities or bring benefit to the local government sector and broader community as part of Tuesday’s State Budget announcements.
These include funding for housing, roads and disaster recovery, prevention of domestic and family violence, and a significant investment to boost the capacity of the NSW Office of Local Government (OLG).
“As widely anticipated, the Treasurer has handed down a conservative budget for 2024-25, reflecting the state’s ongoing struggle with post pandemic and natural disaster budget repair, persistent inflation and a deepening housing crisis,” says President Turley.
“With the budget forecast to be in deficit over the next four years, there is an understandable focus on seeking to reduce that shortfall and reign in state debt.
“Despite being a tight budget, it’s pleasing to see funding for several key concerns for which LGNSW has advocated strongly.”
Relevant State Budget funding announcements include $5.1 billion over four years to build 8,400 social housing dwellings, with 6,200 to be new builds. At least half of these new homes will be prioritised for victim survivors of family and domestic violence, Treasurer Daniel Mookhey confirmed.
“For years LGNSW has been calling for meaningful investment in public, social and affordable housing,” said President Turley.
“Although the scale of need remains vast, this is a very welcome investment from the NSW Government for our most vulnerable communities.”
The State Government has pledged $200.1 million to increase accommodation for rural and regional health workers.
President Turley said that too often it has fallen to councils to provide this accommodation.
“This investment is long overdue and we would welcome any further measures to offset the current practice of cost-shifting on to local government,” she said.
The Treasurer announced $3.3 billion to repair local and state roads in areas impacted by natural disasters across NSW, as part of the $5.7 billion total investment in disaster relief and recovery over four years.
“The lack of funding for the maintenance of our roads is a constant source of frustration and concern for councils across the state and it’s exacerbated by recent natural disasters. This funding will be very welcome, particularly in rural and regional NSW,” said President Turley.
The Government will spend $253.7 million over four years to 2027-28 to pay for NSW Government planners and technology to speed up the assessment of development applications, including $20.4 million to upgrade the NSW Planning Portal.
President Turley said it was pleasing to see funds being directed at fixing operational issues with the Planning Portal, “which has been plaguing councils for years and contributing to delays in development processing delays”.
$200.0 million was also confirmed for financial incentives for councils that meet housing targets, for infrastructure, roads, open space and community facilities.
“This funding was first announced in May, but it remains unclear how it will work given that the government is measuring these targets by dwelling completions (not approvals). It makes no sense for councils to be marked against whether new homes are completed when this is beyond the control of local government.”
To build the capacity of the Office of Local Government (OLG), the Government is set to almost double the Office’s operational budget, with $37.4 million in additional funding over four years.
“LGNSW has repeatedly advocated for better resourcing of the OLG so that it can better support the local government sector,” said President Turley.
While Cr Turley welcomed the significant investment in several key local government priorities, she also pointed to some disappointing funding gaps.
“Only $43.1 million has been allocated to support water infrastructure, reduce leaks and improve water efficiency and drought resilience across NSW,” says Cr Turley.
“The funding falls short of the $217.5 million allocated in 2023-24 increase allocated last year to the Safe and Secure Water Program (SSWP).
Cr Turley also says the lack of significant new funding to support the necessary infrastructure to enable the foreshadowed uplift in housing density was a missed opportunity.
“Overall, the sector would welcome the increased funding measures announced today but none of them will alleviate the overall concerns about the financial sustainability for our sector” says Cr Turley. “The current Parliamentary inquiry into local government’s ability to fund infrastructure and services as well as the State Government review of the Emergency Services Levy (ESL), present significant opportunities for reform towards a fairer, more sustainable funding model for local government,” says Cr Turley.
“LGNSW will continue to advocate strongly for the sector to hold the State and Federal governments to account and ensure our councils and communities are strengthened and enhanced well into the future”.
