Review of the operations of the NSW Reconstruction Authority

Review of the operations of the NSW Reconstruction Authority

Grants and funding arrangements

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severe disasters in the future. Unfunded recovery work or outstanding payments

mean that councils must rely on their financial reserves instead. This leaves them

vulnerable and makes responding to future disasters more challenging.

408 The

Committee notes these issues may also be faced by more geographically isolated

councils, who may have limited resources or experience other challenges due to

their rural and remote location.

5.68 The Committee heard that challenges with DRFA reimbursement can influence a

council's decision to fund certain recovery work. Fears of not being reimbursed or

finding out that work might not be eligible under the DRFA guidelines mean that

councils may not undertake certain recovery work or choose not to rebuild

assets.

409 Smaller councils with less funding reserves are particularly vulnerable

to this issue.410 The Committee is concerned that the reimbursement model will

further entrench disaster risk and undermine preparedness work done by the

Authority.

There is a need for faster interim payments and cashflow support for local councils

5.69 Stakeholders told the Committee that there is a need for quicker funding

decisions and approvals following disasters to support recovery and

reconstruction work. Recovery is inherently urgent and timely access to recovery

funding is essential. However, councils experience significant delays in receiving

reimbursement.

411

5.70 The Committee heard that delays in providing DRFA are caused by:

- bureaucratic processes and/or poor administration of funds412

- redundancy in processes, such as needing to provide the same data

multiple times

413

- the complexity of application processes.414

5.71 These delays force councils to find other ways to cover these costs, which then

has significant impacts on their budget.415 For example, Cabonne Council

experienced a 12-month delay waiting for funding claims to be assessed following

408 Nathan McBriarty, Transcript of evidence, 20 February 2026, pp 8, 11; Darcy Byrne, Transcript of evidence, 20

February 2026, p 14.

409 Dylan Reeves, Transcript of evidence, 17 February 2026, pp 6-7, 9; Adrian Panuccio, Transcript of evidence, 17

February 2026, p 7.

410 Adrian Panuccio, Transcript of evidence, 17 February 2026, p 7.

411 James Prosser, Transcript of evidence, 17 February 2026, p 6; Adrian Panuccio, Transcript of evidence, 17

February 2026, p 4; Deborah Stafford, Transcript of evidence, 20 February 2026, p 11; Submission 19, p 4;

Submission 39, p 3.

412 Submission 24, p 6; Submission 43, p 5; Submission 25, Community Disaster Action Group (CDAG), p 5;

Submission 18, p 4; Submission 35, p 20.

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

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

415 Submission 18, p 4; Submission 26, p 2.