NSW Councils to Gain from New Local-State Agreement

The peak body for local government in NSW and the State Government have officially signed a new agreement of cooperation aimed at strengthening councils and providing more stability for their communities.

Local Government NSW (LGNSW) President Cr Darriea Turley AM signed the 2024-2027 Intergovernmental Agreement (IGA) with NSW Premier Chris Minns and NSW Local Government Minister Ron Hoening on Thursday.

The IGA sets out key principles for an partnership between the two spheres of government to improve social, economic, environmental and civic outcomes for communities across NSW.

The IGA outlines roles and responsibilities and how the two levels of government agree to work together and details their commitment to jointly advocate to the Federal Government on critical community issues and policies that benefit NSW.

The new IGA focuses on strengthening the financial sustainability of councils, commitment to democratic local government, and ongoing collaboration.

Highlights include minimising the impact of cost-shifting and a review of the rate peg in close consultation with LGNSW and councils.

The NSW Government also committed to no progression of council mergers or boundary changes not requested by councils for the term of the agreement, as well as returning councils under administration to democratically elected representatives as soon as practicable.

The new agreement follows the IGA that LGNSW had in place with the previous government between 2019 and 2023.

LGNSW President Cr Darriea Turley AM said the new agreement demonstrated the ongoing strength of the relationship between LGNSW and the NSW Government.

"I firmly believe genuine and sustained progress can only be achieved when all levels of government work together," Cr Turley said.

"A formalised agreement between councils and the NSW State Government reaffirms the equal partnership needed to deliver excellent outcomes for our communities.

"LGNSW has worked hard, as has the NSW Government, to build a strong relationship so we can deliver these outcomes.

"This new agreement is the culmination of those efforts and formalises and affirms both levels of governments' commitment to collaboration, continuous improvement and innovation.

"I commend the NSW Government for their appreciation of the important role councils play in delivering services and support for local communities, and I thank Premier Chris Minns and Local Government Minister Ron Hoening for their commitment," she said.

Cr Turley said the new agreement was the latest in a string of positive outcomes LGNSW and councils had worked collaboratively to achieve over the past 12 months including:

  • $252 million for apprentices and trainees in local government to meet our sector's future workforce needs.
  • Acknowledgment of the impact of cost shifting, with the NSW Government establishing a parliamentary inquiry into the ability of councils to fund infrastructure and services.
  • A new rate peg methodology that wholly recovers the cost of any increase in the Emergency Services Levy (ESL), alongside a review of the ESL that is considering removing this impost from councils entirely.
  • A commitment to working in partnership with councils to resolve longstanding challenges with the Planning Portal.
  • New Tripartite Agreements between councils, Transport for NSW and the NSW Reconstruction Authority to fast-track disaster recovery funding to repair roads and transport infrastructure.
  • The return of local democracy to Balranald, Central Coast and Wingecaribee Councils and the framework for its return in Central Darling

Cr Turley said LGNSW was looking forward to playing its part in the shared vision for NSW, in partnership with the State Government.

"I anticipate even greater outcomes in the near future following this new agreement," Cr Turley said.

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