Cash-strapped councils across New South Wales are facing a $3.4 billion road repair backlog.
New figures suggest regional communities are bearing the brunt of deteriorating infrastructure and delayed recovery from recent floods.
According to the NRMA analysis, the cost to bring local road networks up to standard has surged, driven by three consecutive years of extreme weather.
One of the worst-hit areas is Clarence Valley, where the repair bill has ballooned to more than $390 million – up from $270 million just a year ago.
The Local Government Engineers Association (LGEA) says the backlog highlights an urgent need for recurrent infrastructure funding and long-term investment in engineering capacity.
“Councils and their engineers are under unprecedented pressure to deliver safe, resilient infrastructure with insufficient resources,” the LGEA said in a statement.
The NRMA’s findings have renewed calls for structural reform.
The NSW Government’s own May 2025 response to the parliamentary inquiry into local government sustainability acknowledged that financial distress is rife, especially in rural and regional areas.
While the report stops short of offering new funding, it outlines steps to help councils better manage their finances, including a proposed Comprehensive Spending Review process for any council seeking to raise rates above the cap.
The State’s reforms also include plans to simplify the special rate variation process and modernise financial reporting, but critics argue they fall short of addressing the underlying issue – chronic underfunding.
The LGEA is calling for sustainable, long-term funding for councils and better support for the professionals tasked with delivering essential services.
It has warned that without investment in local engineering roles, communities will continue to suffer the consequences of decaying assets.
“We know our members are already going above and beyond to keep infrastructure functioning under tough conditions,” the Association said.
“But that goodwill won’t fill potholes.”
