Review of the operations of the NSW Reconstruction Authority

Review of the operations of the NSW Reconstruction Authority

Grants and funding arrangements

54

that councils should be supported in applying for DRFA through adequate

resourcing of the Authority and clear guidance across all levels of government.340

DRFA categories are complex

5.36 The Committee heard that the DRFA category system is too complicated and

there is a lack of clarity on what can be claimed under each category.341

What are the DRFA categories?

There are four categories of DRFA assistance that provide different kinds of

financial assistance to either individuals, states or local government. The DRFA

Guidelines specify how DRFA funding may be used under each category.342

Category A funding generally provides assistance to individuals and Category B

to states and local government for the restoration of essential public assets.

Category A and B funding does not require prior approval from the Australian

Government.343

Category C funding generally provides assistance for communities includes

grants for small businesses and primary producers. Category D is used to

address specific gaps in recovery. Category C and D funding requires

agreement from the Prime Minister, and is granted in specific and exceptional

circumstances in response to particularly severe disasters.344 Categories C and

D are generally only used after the impacts of the disaster have been

assessed.345

5.37 MidCoast Council said that claiming funding under Category C and D and the

'exceptional circumstances' pathway was particularly complex. It also reported

challenges on agreeing on categories as part of the application process.

346

Clarence Valley Shire Council also noted that there is a lack of clarity around

Category D funding and defining 'exceptional circumstances'.

347

5.38 Clarity and flexibility around how funds are utilised would be beneficial for

councils during recovery.

348 The Committee also heard that simplifying the DRFA

340 Submission 39, p 3.

341 Submission 33, p 15, Submission 45, p 3; Submission 6, p 5.

342 Department of Home Affairs, Disaster Recovery Funding Arrangements 2018, 5 June 2018, pp 15-23.

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

January 2026, accessed 30 March 2026.

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

January 2026, accessed 30 March 2026.

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

January 2026, accessed 30 March 2026.

346 Submission 45, p 3.

347 Submission 6, p 5.

348 Deborah Stafford, Manager, Social and Cultural Planning, Byron Shire Council, Transcript of evidence, 20

February 2026, p 11.