Fair Funding for the Bush: Council Calls for Greater Regional Support

Published on 15 February 2025

Upper Hunter Shire Council welcomes the release of the Office of Local Government’s latest audit figures on NSW Councils titled “Your Council Report 23/24”, as it clearly shows the disparity between rural NSW and the metropolitan areas. Council is urging stronger financial support for country councils from both State and Federal Government which highlights the growing financial strain on rural communities.

Deputy Mayor Pat Ryan said regional councils face unique financial challenges due to their vast service areas, rising costs, and declining funding support.

“Upper Hunter Shire Council covers over 8,000 square kilometres yet has a population density of just 1.77 people per square kilometre. That means we are maintaining thousands of kilometres of roads and delivering essential services to small, spread-out communities with a limited ratepayer base. The financial pressures on country councils are real and growing,” Cr Ryan said.

Council’s Operating Performance Ratio of -24.8% and net operating result of -$15.53 million before capital grants reflect the impact of rising infrastructure costs, increased depreciation, and insufficient external operational funding.

Despite these challenges, 26% of Council’s operating expenditure is dedicated to roads, bridges, and footpaths—the highest of any council in the Hunter region.

“Our community relies on a well-maintained road network, but the cost of keeping it up to standard is significant. Unlike metropolitan councils, we don’t have public transport alternatives—our residents need safe and reliable roads to access work, school, and essential services,” Cr Ryan said. “You don’t have to look too far through the OLG’s report to see country councils are struggling compared to our city cousins. The funding model clearly requires change.”

Deputy Mayor Ryan said “I am confident that this council has made significant changes in the last 4 years to address this inequity by cutting costs, finding new sources of revenue and identifying opportunities to mitigate the impact of non-performing assets, but without sufficient federal government funding this Council will have no choice but to increase rates or reduce services”. Council is supporting the NSW Country Mayors Association’s call for the Australian Government to restore Financial Assistance Grants (FAGs) to 1% of Commonwealth taxation revenue, up from the current 0.5%.

The upcoming federal election presents an opportunity for regional councils and their residents to advocate for a fairer funding model. “This upcoming election is an opportunity for all residents to send a message to the federal government that the people in the bush want their fair share”

In addition, Council has applied for a Special Rate Variation in 2025 as part of its strategy to maintain financial sustainability and continue delivering essential services.

Ensuring sustainable local government funding must be a priority at all levels of government. Upper Hunter Shire Council will continue advocating for a funding model that properly supports regional councils and the communities they serve.