Cowra Shire Council could receive an additional $2.1 million a year in federal funding under a proposed overhaul of NSW council grants, potentially easing financial pressure on local infrastructure and essential services. The changes would increase Cowra's annual Financial Assistance Grants allocation from approximately $6.8 million to $8.9 million, a rise of around 31 per cent. The figures, presented to Council's 28 September meeting, represent a significant potential increase for a regional council whose limited rate base makes community improvements difficult to afford. Councillor Nikki Kiss said the additional funding could help address infrastructure needs otherwise considered too expensive. "I'm not talking luxuries," Cr Kiss said. "I'm still talking improved signage and footpaths and better public toilet facilities, inclusive playground equipment." Cr Kiss argued the proposed funding model would better recognise the financial pressures facing smaller regional councils. "That methodology, it finally acknowledges that smaller councils like ours don't have the rate base to adequately fund the basic community needs," she said. Council's report identified several financial challenges, including smaller populations across larger geographical areas, extensive road networks, higher service delivery costs and difficulties accessing specialised labour. Under the proposed methodology, these factors would receive greater consideration when determining councils' Commonwealth funding allocations. Councillor Tony Horton suggested the changes could address shortcomings in the existing system. "It might be that the previous methodology didn't take all the factors into consideration, so it might be a correction," Cr Horton said. The potential increase would be divided between general purpose and local roads funding. General purpose funding would rise from approximately $4.8 million to $6.4 million annually, while the roads component would increase from approximately $2 million to $2.52 million. Financial Assistance Grants are untied, meaning Council would retain discretion over how the additional funding is spent. The revised roads formula would place greater emphasis on council-managed road and bridge networks, adjusted for regional construction costs. Councillor Erin Watt said previous increases in road funding had already demonstrated the benefits of additional financial support. "We've already seen a quite significant increase in roads funding for us, and we know in this chamber that's allowed us to quite significantly change the way we work on our roads," Cr Watt said. She highlighted longer term improvements, including sealing roads previously requiring repeated gravel maintenance and widening roads to improve safety. Those improvements were funded through earlier increases, rather than the additional funding now proposed. The proposed methodology would redistribute the existing Commonwealth funding pool among NSW councils, rather than increase the total available. Under the revised general purpose formula, 30 per cent would be distributed according to population, with the remaining 70 per cent based on assessed financial need. Councillor Ruth Fagan welcomed the potential increase. "This is a major change, and it means that we will get $2 million more every year for our grant, which is fantastic," Cr Fagan said. However, the funding remains unconfirmed. The Commission is considering feedback before making recommendations to the NSW Government, which will determine whether the revised methodology is adopted. Implementation is proposed for 2027-28, with allocations dependent on Commonwealth funding. Until approved, the additional $2.1 million remains a possibility rather than guaranteed funding.
