Review of the operations of the NSW Reconstruction Authority

Review of the operations of the NSW Reconstruction Authority

Grants and funding arrangements

56

5.43 The Authority reported it is taking steps to work closer with individuals councils

on navigating DRFA funding, which is discussed later in this chapter.361

5.44 The Committee is concerned that the DRFA application process is adding an

additional burden onto councils that already need help with recovery following

disasters. The Authority should actively assist councils with the application

process as part of its role in administering these funds. The Committee

recommends that the Authority improve the guidance provided to local councils

about eligibility criteria of DRFA. This guidance should be consistent and more

robust in clarifying evidence requirements to support DRFA applications.

Further administrative issues with applications

5.45 The Committee heard that there is an expectation that DRFA assessments should

be submitted before the full extent of disaster impacts are known.

362 MidCoast

Council and Hunter Joint Organisation said that this creates additional

administrative work for councils, who are required to provide the same data

multiple times throughout the application process as a result.

363

5.46 Ms Deborah Stafford, Manager, Social and Cultural Planning, Byron Shire Council,

said that there can be retrospective administrative requirements as part of the

DRFA application process, even for claims that are assessed quickly.

364

There are key gaps in the current DRFA eligibility criteria for critical assets and betterment

Finding 13

The Disaster Recovery Funding Arrangements category system is too

complicated and there is a lack of clarity on what can be claimed under each

category.

Recommendation 20

That the NSW Government continue to advocate to the Australian Government

through relevant intergovernmental forums for reforms of the Disaster

Recovery Funding Arrangements to:

- expand eligibility criteria to include water and sewer infrastructure as

essential public infrastructure

- streamline application and assessment processes, and

- incorporate betterment.

361 Graham Kennett, Transcript of evidence, 20 February 2026, p 35.

362 Submission 33, p 16; Submission 45, p 3.

363 Submission 33, p 16; Submission 45, p 3.

364 Deborah Stafford, Transcript of evidence, 20 February 2026, p 11.