Bega Valley Shire Councillors today agreed that Council publish the Local Government NSW Cost Shifting report on its website and write to the Premier, NSW Treasurer and Minister for Local Government asking for regulatory reform and appropriate funding.
Mayor Russell Fitzpatrick said the pressure on councils to maintain services of a standard that meet the needs of their communities has reached unprecedented levels.
"The increase in cost shifting has continued unabated by various state and federal government policies," Mayor Fitzpatrick said.
"Cost shifting 2025: How State Costs Eats Council Rates, commissioned by Local Government NSW, reveals that $1.5 billion of expense has been imposed on councils.
"This is an increase of about $140 million (10%) since the last 2021/22 financial year report.
"Cost shifting occurs when state and federal governments force councils to assume responsibility for infrastructure, services and regulatory functions without providing sufficient supporting funding."
Mayor Fitzpatrick explained that every ratepayer contributes to state and federal tax revenue through taxes such as stamp duty, payroll tax, GST, income tax and vehicle registration.
"Through state and federal budget processes, this revenue is allocated to the services those levels of government provide," he said.
"When a decision is made for a service previously delivered by another level of government to be shifted to councils, often without consultation with councils and the communities they represent, it means ratepayers will be asked to cover the cost or tolerate lower levels of service.
"Some cost shifting examples include payment of the emergency services levy and depreciation of rural fire service assets without any control or influence, funding shortfall in libraries, payment of mandatory pensioner concessions, development assessment and regulatory functions and the large amount of forced rate-exemptions for non-rateable properties and land across our shire.
"More recent examples where the state government has implemented a policy change that shifts costs and responsibility to councils include the Cemeteries Levy, the Dam Safety Levy which increases operational costs and the costs we will need to wear for proposed changes to the Emergency Services Levy which will require land categorisation reviews.
"It is unfair to our communities that such a large portion of their rates are being diverted away from local priorities."
