The proposed draft changes to NSW’s allocation formula for Financial Assistance Grant funding to local councils will not be revised after consultation, with a high level of engagement, ‘did not receive broad support’ according to the NSW Local Government Grants Commission (LGGC).
Financial Assistance Grants are Commonwealth funds distributed through the states to support local services and infrastructure.
Councils including Byron, Tweed, Kyogle, and Lismore had argued that the methodology proposed by the LGGC did not adequately recognise disaster recovery pressures, tourism, road usage, and the differing costs of delivering regional services.
In a letter to mayors, the LGGC said, ‘No peak body, joint organisation, or union clearly supported the draft model, and significantly, the NSW country mayors’ submission noted that the draft methodology cannot be supported.’
‘The LGGC has decided not to implement the draft revised methodology. The existing methodology will continue to apply.’
Byron Shire Mayor Sarah Ndiaye told The Echo, ‘I am grateful the LGGC has listened. Our community would have lost almost $2.4 million a year, more than half our Financial Assistance Grants, and that is money we rely on to keep our roads and services going.
‘It is wonderful that our advocacy, along with that of councils across NSW, has been successful,’ she said.
‘We should never have had to put so much energy into a proposal this flawed. It would have counted disaster recovery funding as ordinary income and effectively punished communities for being hit by floods. This proposal was absolutely unworkable for the Northern Rivers and other disaster hit regions.’
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