Wollongong council avoids $16 million funding cut after grants commission
The NSW Local Government Grants Commission scrapped proposed changes after councils opposed them, saving Wollongong from a $16 million annual cut.
Wollongong and other NSW councils faced a funding cliff when the Local Government Grants Commission proposed to reshape how federal grants are divided, aiming to help rural councils. Wollongong's share was slated to plummet from $23.8 million to $7.7 million a year, a cut of $16 million.
The council warned the slash would force service cuts, workforce changes, and rate rises. The commission listened: of 102 NSW councils surveyed, only ten supported the changes.
This week the commission scrapped the proposal and kept the existing funding method in place. Wollongong Lord Mayor Tania Brown called it a relief, saying the cut would have posed ongoing risks to service delivery and infrastructure renewal.
The decision also protects Kiama, which faced losing more than half its federal grant.
- $16 million annually
- Funding cut avoided
- $23.8 million
- Current annual grant
- $7.7 million
- Proposed annual grant
- 10 of 102 NSW councils
- Council support for changes
Why it mattersCouncil budgets directly fund roads, pools, community services, and emergency responses. Dodging a $16 million cut means Wollongong avoids choosing between rate hikes and service losses.
AustraliaWollongong and Kiama residents keep council funding stable, avoiding rate rises and service cuts next year that would have hurt infrastructure and local services.
✓ Claims checked against the source. checked 5 h ago
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