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The shifting of financial burdens from the NSW Government to councils is consuming rateable income at a local level at an unsustainable rate. In 2023, data compiled by independent experts Morrison Low showed that in the 2021-22 year a total of $1.32 billion in costs were shifted onto councils in NSW by the State Government, totaling on average an additional $460 per ratepayer annually. An increase of 78% from the 2015-16 financial year.
The top 5 cost shifting categories for which councils do not have a mechanism to recoup costs are:
Waste levy = $14.2 million (2023-24)
The waste levy is paid by all waste facilities to the NSW Government. The cost of this levy is recovered through the waste collection fees levied by councils, in effect shifting the burden of this tax onto ratepayers. The NSW Government does not fully reinvest the waste levy, paid by local councils, back into waste and circular economy infrastructure and programs.
2. Rate exemptions = $2.28 million (2023-24)
Councils are required to exempt government and other organisations from paying rates in the local government area. These organisations utilise local government services and infrastructure. Here in the Shoalhaven, these include schools, hospital, TAFE, churches as well as the University of Wollongong campus, RAAF Naval Base and the South Coast Correction Centre. As they are exempt from paying rates, the burden of the costs they incur is shifted to the ratepayers to fund. Further to this, councils are required to provide pensioner rebates on rates and other charges, for which the state only subsidises 55% of the cost, the remaining 45% is funded by other ratepayers.
3. DA and regulatory functions = $3.97 million (2023-24)
Councils administer regulations that are legislated by the state and federal levels of government. These requirements are continuously increasing and must be funded through the revenue of councils, including rates. This cost us $3.97 million last financial year for development applications alone.
4. Emergency services contributions = $2.76 million (2024-25)
In 2021–22, councils contributed $142 million to the NSW Government Emergency Services Levy, $12.7 million through Rural Fire Service (RFS) obligations, and $10.7 million in depreciation expenses on RFS assets. Here in the Shoalhaven, we have contributed $2.76 million this financial year.
5. Funding of libraries = $3.8 million (2023-24)
Since the NSW Government has reduced its funding commitment from 50% of library operation costs, councils are now having to find additional money to maintain these community services. Our library expenditure was $3.8 million last financial year.
The shifting of financial burdens from the NSW Government to councils is consuming rateable income at a local level at an unsustainable rate. In 2023, data compiled by independent experts Morrison Low showed that in the 2021-22 year a total of $1.32 billion in costs were shifted onto councils in NSW by the State Government, totaling on average an additional $460 per ratepayer annually. An increase of 78% from the 2015-16 financial year.
The top 5 cost shifting categories for which councils do not have a mechanism to recoup costs are:
Waste levy = $14.2 million (2023-24)
The waste levy is paid by all waste facilities to the NSW Government. The cost of this levy is recovered through the waste collection fees levied by councils, in effect shifting the burden of this tax onto ratepayers. The NSW Government does not fully reinvest the waste levy, paid by local councils, back into waste and circular economy infrastructure and programs.
2. Rate exemptions = $2.28 million (2023-24)
Councils are required to exempt government and other organisations from paying rates in the local government area. These organisations utilise local government services and infrastructure. Here in the Shoalhaven, these include schools, hospital, TAFE, churches as well as the University of Wollongong campus, RAAF Naval Base and the South Coast Correction Centre. As they are exempt from paying rates, the burden of the costs they incur is shifted to the ratepayers to fund. Further to this, councils are required to provide pensioner rebates on rates and other charges, for which the state only subsidises 55% of the cost, the remaining 45% is funded by other ratepayers.
3. DA and regulatory functions = $3.97 million (2023-24)
Councils administer regulations that are legislated by the state and federal levels of government. These requirements are continuously increasing and must be funded through the revenue of councils, including rates. This cost us $3.97 million last financial year for development applications alone.
4. Emergency services contributions = $2.76 million (2024-25)
In 2021–22, councils contributed $142 million to the NSW Government Emergency Services Levy, $12.7 million through Rural Fire Service (RFS) obligations, and $10.7 million in depreciation expenses on RFS assets. Here in the Shoalhaven, we have contributed $2.76 million this financial year.
5. Funding of libraries = $3.8 million (2023-24)
Since the NSW Government has reduced its funding commitment from 50% of library operation costs, councils are now having to find additional money to maintain these community services. Our library expenditure was $3.8 million last financial year.
