Funding review over Councils financial sustainability

January 30, 2024 9:35 am in by

The NSW Labor Government will review the financial model for local government to address rising cost pressures facing councils across the state.

The Government has asked the Independent Pricing and Regulatory Tribunal (IPART) to examine the financial model for councils and key factors impacting councils’ financial sustainability.

The review will assess the resources currently available to councils, their capacity to cover ongoing expenses and ability to fund core council services and infrastructure for their communities.

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It will also identify ways to improve budgetary performance and accountability within the sector so democratically elected councillors are empowered to make decisions for the effective running of their councils. 

This announcement follows changes made to the IPART rate peg methodology last year, which give councils greater certainty about the income they can generate through the payment of council rates, while protecting residents from significant rate increases.