14/10/2026
Thanks to the Country Mayors Association of NSW for their advocacy on the proposed change to the way Commonwealth Financial Assistance Grants are distributed to NSW councils. The change could see approximately $2.7 million a year removed from funding available to Wingecarribee Shire - a fall of around 41%. Other local governments are also set to receive significant cuts to their grant funding.
"Financial sustainability is the number one issue facing our members," CMA Chairman Mayor Rick Firman OAM said. "However, the size of the gains and losses are considerable and the CMA, in its very close examination of the methodology, has not been able to ascertain how the calculations for the funding come together."
Wingecarribee reported on the proposal in September and has since made a submission to the NSW Local Government Grants Commission to express our concerns on the methodology, timing and transitional arrangements, particularly with regard to disaster funding and financial sustainability.
📝 Read our statement on the WSC website:
https://www.wsc.nsw.gov.au/News/Community-Announcements-and-Statement/Proposed-funding-change-would-strip-2.7-million-a-year-from-Wingecarribee
NSW COUNTRY MAYORS SEEK MORE DETAIL ON GRANT METHODOLOGY
Country Mayors Association of NSW (CMA) Board and its 89 remote, rural and regional member Councils have asked that the NSW Grants’ Commission to provide more detail on their proposed Balanced Budget approach to the distribution of the Federal Financial Assistance Grants.
“Financial sustainability is the number one issue facing our Members. The Financial Assistance Grants are, after rates, the largest contributor to council finances. Therefore, how the finite bucket of money is distributed is of vital importance to our Members,” CMA Chairman, Temora Shire Mayor Rick Firman OAM said.
“The new approach has resulted in some councils receiving significantly larger grants while others have lost large amounts of income. We recognise that this is a zero-sum game and where one council receives more another must receive less. However, the size of the gains and losses are considerable and the CMA, in its very close examination of the Methodology, has not been able to ascertain how the calculations for the funding come together,” Mayor Firman said.
The new Methodology was released by the Grants’ Commission at the end of August, with responses from the Local Government sector required by the end of last week. However, the Commission was unable to provide any background papers that demonstrated how the underlying assumptions were reached or the calculations were made, making it difficult for the sector to commit to the Balanced Budget approach.
“Because we have not been able to interrogate the Methodology and its underlying processes with any confidence, the CMA has not been able to provide its support for the Balances Budget approach. We have asked the Commission to work with us and LGNSW to revisit the Methodology to address the gaps in our knowledge and understanding,” Mayor Firman said.
“On behalf of the CMA Board, Members and staff I acknowledge the significant work undertaken by the Commission and the Office of Local Government on the development of the Methodology to date. However, there is no question that we need a lot more detail. We would welcome the opportunity to continue working with both agencies to determine the best way forward so as no rural, remote and regional Council are worse off,” Mayor Firman said.
Caption:
Chairperson of the NSW Grants Commission, Ms Linda Scott addressing the last meeting of the CMA in Sydney about the Financial Assistance Grants distribution methodology review.
A copy of the CMA’s response to the new Methodology can be found at https://nswcountrymayors.com.au/publications/
