The New South Wales Government has announced it will cover the large increase in the Emergency Services Levy (ESL) in 2022-2023, but peak body Local Government New South Wales (LGNSW) has warned that true reform of the funding process is needed for long-term reprieve.
The New South Wales Government has supported the ESL for the past three years, to relieve the financial pressure on councils that are struggling to fund services and maintain infrastructure amid rising inflation and falling revenue.
There has been significant financial pressure for New South Wales councils over the last three years, which has been further exacerbated by recent floods.
President of the LGNSW, Darriea Turley, said councils were grateful to New South Wales Treasurer, Matt Kean, who announced that the State Government would kick in an additional $43 million to cover the increase in the ESL currently paid by councils, but called the funding a “temporary reprieve”.
“I want to thank the Treasurer, Local Government Minister, Wendy Tuckerman, and Minister for Emergency Services and Resilience, Steph Cooke, for helping us to drive this decision,” Cr Turley said.
“The $43 million recognises the incredible financial pressure councils have been placed under over the last three years, further exacerbated by the recent floods.”
Cr Turley said that the increase in the ESL will form part of the cost base that councils will have to fund in the following years.
“Minister Cooke points out that the State Government has now spent $93 million to cover increases in councils’ 11.7 per cent contribution to emergency services funding via the ESL.
“On current trends, that total cost could rise to as much as $150 million or more next year.
“The fact that this is the third year in a row that the government has been required to step in shows that something is very, very wrong with the funding process as it stands,” Cr Turley said.
LGNSW has petitioned that the fairest and most transparent way to fund the emergency services is via a broad-based property levy.
“Local governments stand ready and willing to work in partnership with the State Government, to transition to a funding process that doesn’t penalise communities across New South Wales in need of council services and infrastructure such as parks, roads, and footpaths,” Cr Turley said.
