Published on 22 July 2025
Cost shifting remains one of the most significant challenges facing the NSW local government sector.
Cost shifting occurs when state and federal governments force councils to assume responsibility for infrastructure, services and regulatory functions without providing sufficient supporting funding.
Local Government NSW commissioned independent consultants Morrison Low to produce a cost shifting report for the 2023/2024 Financial Year. The report was informed by surveys and data returned by councils from right across NSW.
The report reveals that $1.5 billion of expense has been imposed on councils. That is an increase of approximately $140 million (10 per cent) since the last report for the 2021/2022 Financial Year, when the total cost shift was estimated at $1.36 billion.
The pressure on councils to maintain services of appropriate standard that meet the needs of our communities has reached unprecedented levels.
The unrelenting growth of cost shifting to councils, coupled with rate pegging and insufficient state and federal funding, is increasingly eroding the possibility of financial sustainable local government and risking the capacity of councils to deliver the essential services and infrastructure required by their communities.
Weddin Shire Council continues to advocate for our community on this critical matter.
A copy of the full cost shifting report is available here(PDF, 1MB) .