Review of the operations of the NSW Reconstruction Authority

Review of the operations of the NSW Reconstruction Authority

Grants and funding arrangements

55

process and streamlining eligibility criteria would reduce the administrative

burden on councils.349

Greater transparency and clarity are needed

5.39 The Committee heard that there has been inconsistent decision-making about

when DRFA are granted and what kind of works are funded.350 Mr Adrian

Panuccio, General Manager, MidCoast Council, reflected that following the May

2025 East Coast severe weather event, the Council was told that DRFA could not

be used to repair damage to water and sewerage infrastructure.351 However,

other LGAs have had this damage covered in the past.352 Additionally, following

previous disasters, some communities were eligible for grant programs that

MidCoast Council was not.

353

5.40 Mr Panuccio called for greater transparency about what assistance has been

available to other councils in the past.354 Mr David Reynolds, Chief Executive,

Local Government NSW (LGNSW), said that making the DRFA claims assessment

process more transparent would make it easier for councils to lodge claims.355

5.41 Clarence Valley Council stated that approved DRFA funding has, at times, not

been provided to the Council as described in signed agreements. This delayed the

commencement of significant flood mitigation projects.356 It also identified that

there have been changes made to the evidence needed to make DRFA claims

from time to time and these changes have not been clearly communicated.

357

5.42 The lack of clarity around DRFA processes can negatively impact council's

confidence in their ability to respond to disasters and recover effectively.

Councils want to support their communities with recovery; however, this work

requires funding and confidence that funding will be received or that money

spent will be reimbursed.

358 Stakeholders noted that this confidence is also

important for the community during the recovery period.359 Communities can be

better supported by councils if they can provide clear and timely information.360

349 David Reynolds, Transcript of evidence, 20 February 2026, p 13; Submission 39, p 3; Submission 35, p 23.

350 Submission 6, p 5; Steve Wilson, Executive Officer, Hunter Joint Organisation, Transcript of evidence, 17 February

2026, p 14.

351 Adrian Panuccio, General Manager, MidCoast Council, Transcript of evidence, 17 February 2026, p 3.

352 Adrian Panuccio, Transcript of evidence, 17 February 2026, p 3; Steve Wilson, Transcript of evidence, 17

February 2026, p 14.

353 Adrian Panuccio, Transcript of evidence, 17 February 2026, p 4.

354 Adrian Panuccio, Transcript of evidence, 17 February 2026, p 4.

355 David Reynolds, Transcript of evidence, 20 February 2026, p 13.

356 Submission 6, p 5.

357 Submission 6, p 5.

358 Dylan Reeves, Transcript of evidence, 17 February 2026, p 6; Steve Wilson, Transcript of evidence, 17 February

2026, p 14.

359 Dylan Reeves, Transcript of evidence, 17 February 2026, p 6; Chris Favaloro, Group Manager, Project Delivery,

Port Macquarie Hastings Council, Transcript of evidence, 17 February 2026, p 6; Submission 24, p 7.

360 Chris Favaloro, Transcript of evidence, 17 February 2026, p 6.