LGNSW President and Mayor Phyllis Miller presented infromation at the Forbes Shire Council about State and Federal Government cost shifting.
Cost shifting occurs when state and federal governments force councils to assume responsibility for infrastructure, services and regulatory functions without providing sufficient supporting funding.
The financial sustainability of councils across New South Wales is now at a critical juncture. Both Federal and State Parliamentary Inquiries have recognised cost shifting as one of the most significant contributors to the financial concerns of local government.
Independent consultants Morrison Low, reveals that NSW councils are currently being asked to absorb cost shifting worth more than $1.5 billion each year. The practice has imposed an estimated cumulative burden of more than $11.31 billion over the last decade.
Importantly, as cost of living pressures for households only seem to be rising every month, cost shifting now amounts to an average annual cost of $497.40 paid by each NSW ratepayer.
This average figure equates to nearly $500 per ratepayer that councils cannot invest in the services and infrastructure their communities need and deserve.
The NSW Government needs to take urgent action to address
cost shifting onto councils and their communities, through a
combination of regulatory reform, budgetary provision and
appropriate funding.
As always, LGNSW stands ready to work with the state
government to address the practice of cost shifting and to
strengthen the financial viability of our councils so they can
continue the good work of supporting our communities.
For more information on the report, download here: Cost-Shifting-Report-2025.pdf(PDF, 2MB)
