Hunter Valley councils divided over federal grant overhaul

Councils in the Hunter region are divided over a proposed overhaul of how federal Financial Assistance Grants are distributed among New South Wales local governments. The shake-up, proposed by the NSW Local Government Grants Commission, could increase funding for smaller and rural councils while potentially costing larger urban councils millions of dollars.

Cessnock City Council is considering a staff recommendation to support the new distribution method. The council argues that the revised approach better addresses the pressures faced by high-growth areas. Cessnock is identified as the third fastest-growing regional council in NSW, with its population projected to increase by 66 per cent to over 107,000 by 2041.

The proposal has created tension between fast-growing inland councils like Cessnock and larger coastal councils, including Newcastle and Lake Macquarie, which may see a reduction in their allocations under the new system.