The stance is outlined in a submission to the NSW Local Government Grants Commission
Key points:
- The NSW Local Government Grants Commission annually distributes funding to local councils through the Commonwealth Financial Assistance Grant program, which provides untied funding for councils to allocate to local priorities
- A proposed new methodology for distributing funds from this grant program would see Council’s annual allocation cut by $16 million
- In a submission to the Grants Commission, Council says the proposed cut does not give due consideration to Wollongong’s position as a major regional centre and poses an ongoing risk to its financial sustainability, service delivery, and infrastructure renewal capacity.
- With the proposal still under review, there has been no reconsideration of Council’s budget, Infrastructure Delivery Program or specific projects
Wollongong City Council will formally lodge an objection to a proposed reallocation of financial assistance grants that would cut approximately $16 million per annum from its budget in the next financial year, posing an ongoing risk to its financial sustainability, service delivery, and infrastructure renewal capacity.
At an Extraordinary Council Meeting held tonight (Thursday 8 September), Council unanimously endorsed a submission to the New South Wales Local Government Grants Commission (Grants Commission), which is reviewing its methodology for distributing funding to local councils.
The independent Grants Commission annually distributes Federal Government funding for local councils through the Commonwealth Financial Assistance Grant program, which provides untied funding for councils to allocate to local priorities.
Wollongong City Council received $23.8 million funding for the 2025-26 financial year through the grant program. Should the modelled changes be implemented from July 2027 as proposed, this allocation would drop to approximately $7.7 million, a cut of more than 67 per cent.
The submission outlines Council’s strong opposition to the proposed methodology, saying it does not give due consideration to Wollongong’s position as the regional centre for the Illawarra-Shoalhaven and the associated service demand and expenditure requirements.
The submission also asserts that the modelling is not backed by adequate data or supporting information, lacks transparency, and provides no transition period despite proposing significant funding cuts within a single budget cycle.
Having personally raised concerns regarding the proposed changes with Premier Chris Minns, Lord Mayor of Wollongong Councillor Tania Brown said Council will continue its advocacy in opposing the significant funding cuts.
“We completely understand the reasons why the current methodology is being reviewed, but a funding cut of more than 67 per cent to an annual allocation doesn’t stack up for Council or the community that we serve,” Cr Brown said.
“Council has worked diligently over many years to be in a sound financial position, and you really do need to question any methodology that suggests a $16 million cut within a single budget cycle is warranted or manageable.
“We’ve worked in consultation with our community to develop and adopt our Operational Plan and four-year Infrastructure Delivery Program outlining the many projects and services we plan to deliver for our community.
“There’s no question an annual hit to the budget as significant as the one proposed will have major impacts on what we can continue to deliver, which is why we are advocating so strongly for a reconsideration of the proposed changes.
“We are a growing regional city that supports more than 220,000 residents and, as a major regional centre, the services and infrastructure we provide serve a substantial non-resident population. Those demands are only anticipated to increase in the years to come.
“We look forward to hearing from the Grants Commission regarding our submission and we will continue to advocate on behalf of our community to ensure Wollongong continues to receive its fair share of vital funding.”
Wollongong City Council General Manager Greg Doyle said Council remains committed to working constructively with the state government to ensure Wollongong’s funding needs continue to be met.
“We absolutely recognise the financial challenges faced by local councils and the need to look at all funding measures to support the local government sector,” Mr Doyle said.
“We are keen to work collaboratively with all levels of government to ensure grant funding processes are equitable and transparent to help meet the needs of local communities.
“It’s important that this process is evidence-based and informed by consultation with local councils so that any changes are based on a true and accurate assessment of councils’ expenditure requirements, service obligations and revenue capacity. We do not feel the proposed methodology achieves this in its current form.
“This is outlined in our submission to the review process, and we look forward to further consultation with the Grants Commission and NSW Government to ensure funding opportunities continue to meet the needs of our community and support our long-term financial sustainability.”
The independent Grants Commission is conducting the review of the methodology, however, it is yet to be considered by the NSW Government. While this process is still at the review stage, there has been no reconsideration of Council’s budget, Infrastructure Delivery Program or specific projects.
We will keep the community updated if there are any proposed changes.
