NSW councils oppose proposed Financial Assistance Grant cuts

Four New South Wales councils—MidCoast, Lake Macquarie City, City of Newcastle, and Central Coast—are urging the NSW Government to pause proposed changes to the 2027 Financial Assistance Grants. The councils warn that the cumulative reduction in funding over the next decade could total nearly half a billion dollars.

Under the proposal by the NSW Grants Commission, funding would be reallocated to councils with residents who can less afford higher rates. The four councils, which are the largest by population in the region, claim the changes would divert more than $33 million from their communities in the coming year alone. They argue the funds are essential to meet increasing infrastructure and service demands.

MidCoast Council general manager Adrian Panuccio stated that the projected $5 million annual reduction cannot be absorbed without reducing services or increasing costs. He noted the council is already managing significant infrastructure needs, including approximately 4,000 properties requiring repair and an estimated $320 million in damage to roads and bridges.