Upper Hunter Shire Council has expressed disappointment at the NSW Local Government Grants Commission’s decision not to complete its review of the Financial Assistance Grants methodology, saying the outcome leaves smaller councils facing unresolved funding pressures.
Council supported the proposed methodology in principle and made recommendations to address some concerns with its detail. Under the draft model, Upper Hunter’s projected allocation for 2027-28 was about $9.2 million, compared with $7.3 million under the existing model.
Mayor Pat Ryan said the additional $1.9 million would have strengthened council’s capacity to keep the lights on and maintain infrastructure in order to deliver essential services.
“Fairness has to mean more than preserving the status quo,” Cr Ryan said.
“Keeping the existing formula may suit councils that benefit from it, but it offers little comfort to communities struggling to fund the basics.”
Council manages more than 1,700 kilometres of local and regional roads, including about 1,000 kilometres of unsealed roads, along with bridges and major culverts. The network carries livestock, grain, feed, horse transport and heavy machinery, alongside school buses and emergency vehicles, and must be maintained across a large area with a relatively small ratepayer base.
“Our communities help produce the food and support the industries that the wider state relies on. We deserve a funding system that recognises the infrastructure making that possible,” said Cr Ryan.
Council’s responsibilities also include water and sewerage services, saleyards, an airport, childcare and subsidised housing for medical practitioners.
The Commission has advised the existing methodology will continue and that it may revisit a revised model for the 2029-30 council term if additional Commonwealth funding becomes available.
Council says smaller communities should not have to wait another three years with no certainty reform will follow. It will continue advocating for increased Commonwealth funding, a more equitable distribution and a clear timetable for further reform.
