Council calls for changes to disaster funding reform

Published on 20 August 2026

Drawing on the lessons from last year’s significant snow event, Uralla Shire Council has lodged a submission to the Australian Government's proposed Disaster Recovery Funding Framework (DRFF) calling for changes to ensure regional councils are not left carrying uncertainty during disaster recovery.

Council supports the objective of creating a simpler, faster and more resilient disaster recovery system, but says key aspects of the proposed framework require further work.

Mayor Robert Bell said Council's submission highlighted the challenges local governments face in responding to emergencies, restoring damaged infrastructure and supporting communities through recovery.

"Small regional councils are often the first to respond when disaster strikes and remain at the forefront of recovery long after the event has passed," Mayor Bell said.

"We support reforms that make disaster funding simpler and more focused on resilience, but the framework must also work for the councils delivering recovery on the ground."

Council is also concerned about the proposed increase to the New South Wales disaster activation threshold from approximately $240,000 under current arrangements to $2.7 million under the proposed framework. Council argues that while the trigger is assessed at a state level, a disaster does not need to reach that scale to place significant pressure on a small regional council and its community.

Another key concern for Council is the proposed 50:50 cost-sharing arrangement between the Australian Government and states and territories. Council says the proposal does not clearly explain what protections will apply to local government or guarantee full reimbursement of eligible recovery costs.

"Regional councils need certainty that eligible disaster recovery costs will be reimbursed and that funding will reach communities quickly," Mayor Bell said.

"The proposed increase in the disaster funding threshold and the lack of clarity around council reimbursements risks creating uncertainty for regional communities when they are at their most vulnerable."

"The framework explains the funding relationship between the Commonwealth and the states, but it leaves important questions unanswered about how local government will be supported."

Council's submission also calls for improved cash-flow arrangements, greater recognition of local government capacity, broader eligibility for community assets and a more flexible approach to resilient infrastructure funding.

Mayor Bell said effective reform should help councils recover faster while strengthening communities against future events.

"Rebuilding damaged infrastructure in a way that reduces future risk makes sense for communities and taxpayers alike," he said.

"Our goal is a disaster funding framework that supports recovery, builds resilience and gives councils the certainty they need to get on with the job."

Uralla Shire Council has urged the Australian Government to continue working closely with local government before the framework is finalised.