The peak body for local government in NSW has acknowledged some positive announcements in the State Budget delivered by Treasurer Daniel Mookhey.
LGNSW president Mayor Phyllis Miller OAM welcomed some measures that councils would support for their communities but said she was disappointed to see only a few benefits for the local government sector included in the Budget Papers.
“The financial sustainability of the local government sector in NSW continues to remain a significant challenge and it was disappointing that the Budget failed to address this,” said Mayor Miller.
“We look forward to the State Government working with us to encourage the Federal Government to return our Financial Assistance Grants back to one per cent,” she said.
“Councils across the state face ongoing cost pressures, particularly from disaster recovery and resilience-building efforts, but also due to cost shifting from the NSW Government – compounded by insufficient grants from both state and federal governments”.
However, Mayor Miller said the 2025-26 budget did include some significant positive announcements for the local government sector, including:
• $4.2 billion in disaster relief across the forward estimates, with the government anticipating that this figure would increase in response to previous and potentially new natural disasters.
• Welcome boosts for biosecurity measures, including to protect against pest animals and weeds. This includes an additional $100 million to develop an improved detection, protection and response model.
• A range of budgetary measures to promote housing development, which reflect recognition that emphasis on the planning system alone will not resolve the housing crisis.
• A commitment of $6 million over two years to support Central Darling Shire Council’s transition back to elected representation and assist the council in achieving long-term financial stability.
• $472.9 million for improving the Biodiversity Offset Scheme and associated measures.
• Increased investment in rural and regional health (including dental) and mental health services.
While Mayor Miller welcomed these positive announcements, she also pointed to some disappointing funding gaps.
“An increase of seven per cent in Emergency Services Levy (ESL) council contributions from last year will be devastating. While the cost of the increase to councils will be largely recovered through an increase in the rate peg for each council, it is still a cost to our community members that will have to be collected by councils,” Mayor Miller said.
“In addition, the government is yet to make a funding commitment to renew or replace the Safe and Secure Water Program (SSWP). This is a project that LGNSW has been advocating for a commitment of $1 billion over four years,” she said.
“Also, despite the Treasurer’s speech focussing on the need for housing across the state and setting out a guarantee for the development industry, there is no new guarantee for our communities as there is no new funding for public and social housing, and a conspicuous lack of investment in infrastructure betterment and resilience, that would help our communities better withstand future disasters,” Mayor Miller said.
“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,” Mayor Miller said.
