Newcastle and Lake Macquarie face $193 million grants cut over next decade
Newcastle would lose about $108 million and Lake Macquarie $85 million over ten years under proposed state grants changes.
Newcastle City Council and Lake Macquarie City Council have joined other councils in warning of combined losses of almost half a billion dollars under proposed state grant changes from 2027. Newcastle currently receives about $15.5 million a year but would lose at least $9.4 million annually.
Lake Macquarie receives almost $21 million yearly but faces cuts of at least $7.2 million each year. The Local Government Grants Commission wants to shift funding to councils whose residents can less afford higher rates.
Newcastle funds regional assets like the Civic Theatre and Ocean Baths that many non-ratepayers use. Lake Macquarie is growing faster than almost anywhere else in regional NSW and says it needs funding that recognises that growth.
The councils say the new model unfairly counts Newcastle Airport revenue despite it being a separate entity.
- $108 million
- Newcastle decade loss
- $85 million
- Lake Macquarie decade loss
- Almost half a billion dollars
- Four councils combined loss
- $9.4 million
- Newcastle annual cut
Why it mattersCouncils will either cut services or raise rates to cover the shortfall; residents in Newcastle and Lake Macquarie face steeper bills or fewer council services.
AustraliaNSW ratepayers in Newcastle and Lake Macquarie will likely see higher council rates or reduced services if the grants formula changes go ahead.
✓ Claims checked against the source. checked 6 d ago
