Georges River faces estimated $857,063 grant reduction under proposed NSW formula

Georges River Council has opposed a proposed NSW grants formula that would reduce its Financial Assistance Grant allocation by an estimated $857,063, including an $825,467 reduction in funding for local roads.

The Local Roads reduction is estimated at 54.7 per cent compared with the council’s 2025/26 allocation. The overall reduction would also be measured against Georges River’s 2025/26 Financial Assistance Grant allocation.

The council wants the NSW Local Government Grants Commission to use a fair, transparent and evidence-based assessment of the different needs and cost pressures facing metropolitan, regional and remote councils.

It has also called for the Local Roads component to reflect the population served, population density, road use, traffic volumes, asset condition and demonstrated renewal requirements, alongside road length and regional construction costs.

Council also wants transitional arrangements to prevent significant and sudden funding reductions for individual councils. If the proposed methodology is implemented, the lower external grant allocation would place pressure on funding capacity for local roads and other council services.

The resolution authorises General Manager David Tuxford to make a submission to the NSW Local Government Grants Commission on the council’s position. He is also authorised to advocate that position to the NSW and Australian governments and relevant local members of parliament.

The motion, moved by Mayor Elise Borg, was carried unanimously. Council’s submission will argue that the grants methodology should account for the demands placed on roads in a metropolitan council, rather than relying only on road length and regional construction costs.

The proposed changes concern Financial Assistance Grants distributed through the NSW Local Government Grants Commission. Georges River Council’s objection focuses on both the size of the projected reduction and the way the Local Roads component assesses councils’ needs and cost pressures.