The Nationals have slammed the Minns Labor Government for secretly scaling back the Recovery Coordinator for the Hunter and Mid North Coast floods, at a time where businesses and farmers are still struggling.
Former Deputy Police Commissioner Dave Owens was specifically appointed to the position to manage clean-up and repair efforts but is due to finish up next week.
The decision comes as new data revealed just 370 businesses, or less than 30 per cent, were approved for support out of 1281 applicants, with 570 being rejected.
Of those that were approved, only 119 tried to claim more than the initial $5,000 payment, with just 73 successful due to overly complex guidelines.
NSW Nationals Leader Dugald Saunders said the decision not to extend Mr Owens in the role doesn't make sense, given the job of recovery is clearly far from over 110 days after the devastation.
"To hear the Recovery Coordinator duties are being redirected while communities are still hanging by a thread is yet another indication that the Minns Labor Government has no idea about what people are facing," Mr Saunders said.
"Businesses are right now wondering how and why they should keep going after waiting for over three months and hoping for some genuine assistance.
"On the surface everyone we've spoken to is fed up with the process. Even those who have got the first $5,000 feel like it was a nightmare to get there and are now finding it difficult to access the next $20,000."
Nationals Member for Myall Lakes Tanya Thompson said rollout has been shockingly slow and called for the government to uplift the grant to at least $50,000.
"It feels like betrayal after betrayal and now the Minns Labor Government has decided to effectively abandon those who need help the most," Mrs Thompson said.
"These decisions make or break people's lives, and the stroke of a pen is affecting whether they can open their doors or have to shut up shop forever."
Nationals Member for Oxley Michael Kemp said the process for collecting data has also been bungled.
"At the point when the Minister for Recovery admitted her department was no longer using its own impact surveys, it proved this government is willing to put politics above need," Mr Kemp said.
"By capping the data at $5,000, they're rigging the numbers and cooking the books to downplay the scale of the devastation.
"It's a slap in the face for the small businesses that are the heartbeat of our communities and shows the Premier and the Minister responsible are completely out of touch."