Proposed changes to how the Federal Government Financial Assistance Grants are distributed by the State Government to Councils in NSW mean MidCoast Council stands to lose $5 million annually from July 2027.
If the new methodology is adopted by the NSW Grants Commission, MidCoast Council Mayor Claire Pontin said the implications for the region were clear.
“Realistically, it means we will have to look at reducing services or service levels,” she explained.
“Councils affected by this change, including our own, are already struggling with infrastructure backlogs and continued cost-shifting from State and Federal governments.
“That means less money for our already struggling road network and less money for our community as a whole.”
Cr Pontin has been outspoken in her efforts to limit cost-shifting by State and Federal governments. She has also recently urged the Federal Government to increase its Financial Assistance Grants.
“The proposed changes to how the money is distributed in NSW is not equitable.” Cr Pontin said.
“While some small councils need help this goes too far and is taking from council’s that are already in significant financial need.
“MidCoast Council has spent considerable time cutting costs and trying to put this Council in a stronger financial position, but if these changes are made, it will be two steps forward and three steps back.
“The money has to come from somewhere, and a loss of that magnitude cannot be absorbed.
“Our community should not be asked to carry the consequences of a funding redistribution that fails to properly recognise what it costs to run a regional Council like ours.”
Mayor Pontin said the cost of delivering services across a large, dispersed community that is constantly disaster affected is significantly more and needs to be recognised.
“We are not opposed to reviewing or improving the methodology, and we support a system that is simple, transparent, reliable and directed to councils with the greatest relative need.” she said.
MidCoast Council will prepare a submission to the NSW Grants Commission before the 9 October deadline.
