City of Newcastle is working with the NSW Reconstruction Authority (RA) to finalise a funding package to enable the demolition of properties affected by the New Lambton landslip and compensate residents for the loss of their land.
Residents and landowners were updated on the next stage of recovery at a face-to-face meeting last night as they prepare to mark the one-year anniversary of the event.
City of Newcastle CEO Jeremy Bath said progress on the recovery phase and discussions with the RA have moved forward significantly since the release of the geotechnical report in February.
"The report proved to be a turning point in our relationship with the RA as it demonstrated the critical severity of the landslip site," Mr Bath said.
"Residents will soon move from insurance-funded relocation to a 12-month relocation package funded by the NSW Government. It's important that we recognise and thank the NSW Government for supporting the residents in this way.
"We continue to work with the RA on behalf of the residents to identify a long-term solution that stabilises the ground. Sadly, these works won't permit future development on the site.
"Given the complexity of the funding arrangements, which will require State and Federal contributions, and are not committed yet, we believe demolition works at the site aren't likely to commence until early in 2027.
"While long-term recovery is ultimately the responsibility of the NSW Government, we are committed to collaborating in our support of the affected residents and landowners."
CEO Kate Fitzgerald said the RA is working closely with City of Newcastle, residents and landowners affected by the New Lambton landslip.
"Recovery from events like this takes time, and progress can at times feel slow, but the RA remains committed to supporting Council and residents as they consider future solutions," Ms Fitzgerald said.
"RA staff continue to work closely with Council and meet regularly as they consider options outlined in the geotechnical report and plan the next steps for recovery.
"I also want to acknowledge the residents directly affected by the landslip and reassure you that we remain here to support the Council and help you navigate the recovery process."
It has been almost 12 months since the site experienced extensive rainfall which culminated in two days of intense rainfall, triggering a natural disaster, now recognised as the largest residential landslip in Australian history.
The New Lambton site remains a declared Danger Area under an active evacuation notice, with residents of 16 properties unable to return home.
Since 23 May 2025, City of Newcastle has undertaken significant work across the emergency response and recovery phases, including site safety measures, fencing, signage, security and site investigations.
Detailed geotechnical investigations and ongoing monitoring instigated by City of Newcastle have helped inform evidence-based decisions about public safety, public infrastructure, site stability and potential long-term recovery options.
Mr Bath said City of Newcastle remains committed to working with the impacted residents, landowners and neighbours as the complex recovery efforts continue.
"City of Newcastle has continued to lead on-the-ground activities, site monitoring and site safety through our employment of a Local Recovery Coordinator," Mr Bath said.
"We have also coordinated property access, resident communications, legal and technical advice, and ongoing engagement with insurers and government agencies.
"We recognise the hardship faced by residents who have had to leave their homes and will continue to advocate on their behalf and keep them informed while assessments and recovery options are progressed by the RA.
"The cost of this support has been more than $2.5 million dollars so far. I'd like to thank ratepayers for their understanding in permitting us to support the 16 evacuated families with what is effectively, their money."
Ward Three Councillors Peta Winney-Baartz, Mark Brooker and Siobhan Isherwood will put forward a Notice of Motion at Tuesday's Council Meeting to reaffirm City of Newcastle's commitment to supporting residents and working with all relevant agencies to progress the recovery phase.
It will also thank the government and non-government agencies that have assisted residents and City of Newcastle through both the emergency management and recovery phases, including NSW Police, NSW Public Works, Hunter Water, Ausgrid, NSW Health, Local Lands Service and the Red Cross.
City of Newcastle will also mark the one-year anniversary of the landslip by hosting a barbecue to thank SES and community volunteers for their commitment and service during the extreme weather that hit the Hunter in May 2025.
