Uralla Shire Council has called for changes to the Australian Government’s proposed disaster recovery funding reforms, warning regional councils could face greater financial uncertainty under the new system.
Drawing on lessons from last year’s significant snow event, the council has lodged a submission on the proposed Disaster Recovery Funding Framework (DRFF).
The council supports moves to create a simpler, faster and more resilient disaster recovery system but says several aspects of the proposed framework need further work.
Mayor Robert Bell said the submission highlighted the challenges local governments faced when responding to emergencies, restoring damaged infrastructure and supporting communities through recovery.
“Small regional councils are often the first to respond when disaster strikes and remain at the forefront of recovery long after the event has passed,” Bell said.
“We support reforms that make disaster funding simpler and more focused on resilience, but the framework must also work for the councils delivering recovery on the ground.”
A key concern is a proposed increase in the NSW disaster activation threshold from about $240,000 under current arrangements to $2.7 million.
While the threshold is assessed at a state level, the council says disasters costing significantly less can still place substantial financial pressure on small regional councils and their communities.
The council has also raised concerns about a proposed 50:50 cost-sharing arrangement between the Australian Government and states and territories.
It says the proposal does not clearly outline what protections would apply to local governments or guarantee full reimbursement of eligible recovery costs.
“Regional councils need certainty that eligible disaster recovery costs will be reimbursed and that funding will reach communities quickly,” Bell said.
“The proposed increase in the disaster funding threshold and the lack of clarity around council reimbursements risks creating uncertainty for regional communities when they are at their most vulnerable.”
“The framework explains the funding relationship between the Commonwealth and the states, but it leaves important questions unanswered about how local government will be supported.”
The council’s submission also calls for improved cash flow arrangements, greater recognition of local government capacity, broader eligibility for community assets and a more flexible approach to funding resilient infrastructure.
Bell said effective reform should help councils recover more quickly while strengthening communities against future disasters.
“Rebuilding damaged infrastructure in a way that reduces future risk makes sense for communities and taxpayers alike,” he said.
“Our goal is a disaster funding framework that supports recovery, builds resilience and gives councils the certainty they need to get on with the job.”
Uralla Shire Council has urged the Australian Government to continue consulting local government before the framework is finalised.
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