Snowy Valleys residents will soon vote on whether to split their council, after the NSW Local Government Minister gave the green light for a de-amalgamation referendum.
The decision follows a Boundaries Commission report recommending support for Snowy Valleys Council’s proposal to separate the former Tumut and Tumbarumba shires. The Minister accepted the advice on Tuesday and confirmed discussions are underway with the NSW Electoral Commissioner to arrange the poll.
Under the plan, both Tumut and Tumbarumba would resume as independent local government areas. However, the Boundaries Commission has warned residents that de-amalgamation would come at a cost. Rates in a restored Tumut Shire are projected to rise by almost 15 per cent over seven years, while Tumbarumba households could face increases of between 45 and 65 per cent over the same period. Fees for water, sewerage, leases, licences and drainage would also rise.
Minister for Local Government Ron Hoenig stressed that the community must weigh these financial realities when casting their vote.
“If there is majority support in the referendum and residents are prepared to accept the financial costs, then the Council can progress with the transition work required to demerge. If the referendum is rejected, the community and the Council must respect that outcome and get on with it,” he said.
The referendum follows years of frustration over forced mergers.
In 2016, a former state government amalgamated 44 councils into 19 larger entities, including Snowy Valleys, which combined Tumut and Tumbarumba. Many residents argued the two communities had different priorities and identities, and that running them under one structure created inefficiencies.
The Snowy Valleys move comes just weeks after Cootamundra-Gundagai successfully de-amalgamated following a decade-long community campaign. That decision has given hope to other merged councils seeking to revisit their future.
Minister Hoenig has made clear the state will not force outcomes either wa.
“These are decisions for communities, they are not decisions for governments. The important thing is the communities of Snowy Valleys are given the choice to make this decision for themselves – not have it made for them by the state government which has no mandate to interfere with local democracy,” he said.
The referendum will only succeed if a majority of voters across the whole Snowy Valleys area support the split. Before polling, Council must publicly exhibit its business case and implementation plan so residents can review financial and service delivery implications.
If endorsed, Snowy Valleys would become the second NSW council to de-amalgamate since the 2016 merger program.
