Singleton loses $1.5 million a year as state blocks federal grant changes
NSW dropped a planned overhaul of how it splits federal grants among councils, leaving smaller rural councils without projected funding increases.
Five Hunter councils, Singleton, Cessnock, Maitland, Dungog and Upper Hunter, say they have been left out of pocket. NSW shelved a new method for dividing federal Financial Assistance Grants.
The federal government provides the money, but NSW's Local Government Grants Commission decides how it is shared. The scrapped changes would have redirected funding to rural councils that struggle to raise money through rates.
Larger coastal councils would have lost money. Singleton mayor Sue Moore said her council would miss out on about $1.5 million a year.
Cessnock expects to lose between $4 million and $8 million. Moore said the decision sends a message that the growing gap between small and large councils is acceptable.
Larger councils including Newcastle and Lake Macquarie would have faced cuts of almost $10 million a year combined. They welcomed the decision.
- $1.5 million per year
- Singleton annual loss
- $5.5 million under current model
- Singleton current grant
- Sue Moore
- Mayor of Singleton
Why it mattersSmaller councils now face tighter budgets and less capacity to build the infrastructure and services their communities need.
AustraliaNSW regional communities will see fewer resources for local facilities and services, while funding gaps between wealthy and struggling councils stay locked in place.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
Open this story in InSnip →
