financial sustainability
Local governments across Australia are facing mounting financial risks that threaten their long-term sustainability.
- In November 2022 in the lead-up to the 2023 State Election, NSW Labor formally recognised that cost shifting had undermined the financial sustainability of the local government sector.
- In November 2024, the final report of the Inquiry into the ability of local governments to fund infrastructure and services recommended that the NSW Government identify opportunities to reduce cost shifting to local government.
- The 2024 Intergovernmental Agreement between LGNSW and the NSW Governments includes a commitment to minimise the impact of cost shifting on local government.
- In May 2025, the NSW Government responded to this cost shifting recommendation reinforcing “Its commitment to the Intergovernmental Agreement with Local Government NSW”.
Both Federal and State Parliamentary Inquiries (listed below) have recognised cost shifting as one of the most significant contributors to the financial concerns of local government. Alignment between these findings reinforces the need for cross-jurisdictional concern that requires coordinated action.
NSW Government Inquiry
- Standing Committee on State Development – Inquiry into ‘Ability of local governments to fund infrastructure and services – Report 52 (Nov 2024).
- NSW Government Response (May 2025).
Federal Government Inquiry
- House of Representatives Standing Committee on Regional Development, Infrastructure and Transport Inquiry into local government sustainability (March 2024).
- Interim report into local government sustainability (Feb 2025).
We thank the NSW Government for recognising and exploring solutions to ensure local government financial sustainability.
We’d like to discuss how we can work together on recommendations from the Inquiries, and to address these challenges listed below.
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