KPMG LOCAL GOVERNMENT PROPOSED REFORMS AND MERGERS
In response to the wide-ranging challenges facing
the sector, the NSW Government has developed a comprehensive reform package. The package aims to create a stronger, higher-capacity and more sustainable local government sector. To achieve this, council mergers are needed in metropolitan Sydney and regional NSW to help fund better services and infrastructure, improve resilience and reduce reliance on rate increases. The NSW Governmenthas announced a funding package to support merging councils which will result in up to $665 million being made available to newly created councils. These proposed mergers will take place as part of a broader package of reforms to modernise the local government sector. This report assesses the potential impacts of local council mergers – including the impacts on councils’ financial performance, as well as potential local community impacts. The key findings of this analysis include: • the proposed mergers have the potential generate a net financial benefit to local councils of around $2.0 billion across NSW over the next 20 years; • an estimated $1.3 billion in net financial savings will be generated over a 20 year period; • the estimated costs of the mergers are expected to be absorbed by efficiencies generated by the mergers within three years of implementation; |
• the proposed mergers are expected to generate,
on average, $100 million in benefits to local councils every year; • savings generated by the proposed mergers will be used to improve frontline services, and fund new community amenities and infrastructure – from better local roads and cycleways, to upgraded parks and recreational facilities; • savings can also be used to repair and replace council-owned assets, many of which are in poor condition; and • the proposed mergers will result in simplified council regulations through the removal of inconsistencies that currently exist between councils. This will benefit local residents and businesses and streamline the way the community interacts with councils. Reduced layers of regulations will make it easier for people to do business, build homes and access services they need. This report has been prepared by KPMG on behalf of the NSW Government. Its preparation has relied upon information sourced from annual data returns and long term financial plans of individual councils, and a variety of other publicly available sources. Neither KPMG northe NSW Government has independently verified such information. |
Download the KPMG Local Government Reform Merger & Impacts Analysis (SHORT FORM)
2015-12-01_-_kpmg_local_government_reform_merger_impacts___analysis.pdf | |
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