Australian local councils report significant surpluses driven by one-off grants

Local government authorities in Newcastle and Wollongong have reported substantial operating surpluses, though officials caution that these figures are heavily influenced by one-off factors.

The City of Newcastle reported an $18 million surplus, but acting chief financial officer Scott Moore noted that the underlying result was approximately $1.2 million. The higher figure was bolstered by $5.7 million in early federal financial assistance grants, better-than-expected investment returns, and strong performance from the council-owned Newcastle Airport. The council also faces rising operating costs, including an $11.9 million increase in employee benefits and a $5.1 million rise in borrowing costs.

Wollongong City Council reported a $106 million operating surplus, which includes significant one-off state and federal funding grants. When these grants are excluded, the surplus decreases to $13.9 million. Councillors emphasized a cautious approach to the funds, noting that inflationary pressures and future population growth necessitate financial prudence and accountability.