Review of the operations of the NSW Reconstruction Authority

Review of the operations of the NSW Reconstruction Authority

Grants and funding arrangements

52

reimbursement or as an advance payment in response to extremely damaging

disasters.

The National Emergency Management Agency (NEMA) is the Australian

Government agency responsible for administering DRFA. NEMA works with

states and territories who deliver the funding and determine the type and level

of assistance to make available.323

Once DRFA are activated in relation to a disaster, the Australian Government

may reimburse states and territories up to 75 per cent of the financial

assistance provided. This Commonwealth-state cost sharing is sometimes

referred to as 'joint' arrangements.324

Advance payments are made in exceptional circumstances, specifically when a

disaster causes significant and extreme damage and the costs are likely to

exceed what the state or territory can manage in the immediate to short-

term.325

Applying for DRFA is complex and time-consuming

Finding 11

Local councils highlighted significant financial pressures, delays in

reimbursement, and administrative burdens associated with the current

Disaster Recovery Funding Arrangements.

Finding 12

The current Disaster Recovery Funding Arrangements application process has

proven overly bureaucratic, complex and time consuming, all at a time when

council efforts should be directed to recovery.

Recommendation 19

That the NSW Reconstruction Authority consider opportunities to improve and

increase the consistency of guidance and resources provided to local councils

about eligibility criteria under the current Disaster Recovery Funding

Arrangements, particularly regarding evidence required in support of Disaster

Recovery Funding Arrangements applications.

5.30 Many councils told the Committee that applying for DRFA is a complex process

that places a significant administrative burden on them and their staff.

326

Councils described applying for funding, making claims and proving eligibility as

323 Submission 17, NSW Small Business Commission, p 2.

324 National Emergency Management Agency (NEMA), Disaster Recovery Funding Arrangements, last updated 2

January 2026, accessed 30 March 2026.

325 National Emergency Management Agency, Disaster Recovery Funding Arrangements, last updated 2 January

2026, accessed 30 March 2026.

326 Submission 19, p 1; Submission 45, p 3; Submission 33, p 15; Submission 35, p 23; Nathan McBriarty, Manager

Infrastructure Strategy and Planning, Wollongong City Council, Transcript of evidence, 20 February 2026, p 9; Dylan

Reeves, A/Director Operations and Planning, Kempsey Shire Council, Transcript of evidence, 17 February 2026, pp 6-

7; Submission 36, p 6.