Singleton mayor calls out state government cost shifting on local coun

Published on 21 February 2024

The Mayor of Singleton will write to the Premier of NSW the Hon Chris Minns MP, Treasurer Daniel Mookhey MLC and Minister for Local Government Ron Hoenig MP to seek their commitment to work in partnership with the local government sector to address issues with cost shifting. 

Cost shifting arises when the NSW Government forces councils to assume responsibility for infrastructure, services and regulatory functions without sufficient supporting funding.

In a Mayoral Minute to last night’s ordinary meeting of Council, which was unanimously carried, Cr Sue Moore said alarming new research commissioned by Local Government NSW (LGNSW) revealed the increase of cost shifting has accelerated up to 78 per cent in just over five years, equating to $460 per ratepayer annually*.

Cr Moore said cost shifting was one of the most significant problems faced by councils in NSW, undermining the financial sustainability of the entire sector.

“The pressure on councils to continue to provide services of appropriate standards to our communities is extraordinary — the unrelenting growth of cost shifting to councils, coupled with rate pegging is increasingly eroding any possibility of financial stability in local government and risking our capacity to deliver tailored, grassroots services as well as maintain deliver vital local infrastructure,” she said.

“With councils having to fund ongoing subsidies for the state government, it means our community either gets less or goes without.

“It cannot be overstated how seriously Singleton Council takes our responsibility to sustainable financial management, and cost shifting by the state government seriously undermines our proactive approach to ensure our long-term financial viability while still delivering the infrastructure, programs and services our community has come to expect and deserves as we continue to deliver on our vision to ‘create community’.”

Cr Moore said she would call on the Minns Government to reaffirm their pre-election commitments to ensure that cost shifting is addressed through a combination of regulatory reform, budgetary provision and appropriate funding. 

“While reforms in rate pegging methodology and the forthcoming review into the Emergency Services Levy to no longer be imposed on NSW councils or insurance policies in line with every other Australian state goes a long way, it’s still not enough.

“Significant reforms are required, and addressing this longstanding matter demonstrates a commitment from the government to work in partnership with councils like Singleton for the benefit of the communities we serve.”

ENDS

*The latest cost shifting report produced by independent consultants Morrison Low on behalf of LGNSW shows that the cost shifting burden is now valued at more than $1.36billion per year. Full report at lgnsw.org.au/costshifting