NORTHERN Beaches ratepayers were out of pocket $39 million, or $379 per ratepayer, due to the NSW Government cost shifting.
Cost shifting refers to when state or federal governments force councils to absorb responsibility of infrastructure, services, and regulatory functions with support funding.
Commissioned by the LGNSW, independent consultants Morrison Low conducted a report for the 2021/2022 financial year, calculating the costs passed onto councils. In the report, NSW councils were found to have shouldered an accumulative $1.36 billion because of cost shifting.
‘Every dollar we pay to levies and subsidies to the state government, is one less dollar we can put into our local roads and footpaths, our parks and community centres or our libraries and events programs,’ says Northern Beaches Mayor Sue Heins. ‘Put simply, it constrains our ability to maintain our community.’
According to the Cost Shifting Report for 2021/22, Northern Beaches Council paid $6.4 million for the Emergency Services Levy, the highest in the state. This financial year, the Emergency Services Levy raised to $9.3 million, equivalent to $90 per ratepayer.
‘Our community deserve better and this must stop,’ says Mayor Heins.
Northern Beaches Council are set to write to the NSW Premier, Chris Minns, the NSW Treasurer, Daniel Mookhey, and the Minister for Local Government, Ron Hoenig. Council will request that cost shifting be addressed through regulatory reform, appropriate funding, and budgetary provision.
‘I encourage the government to consider how this cost shifting is resulting in lost services, lost opportunity, and lost amenity for NSW residents and businesses and do something to fix it,’ says Mayor Heins.
