Review of the operations of the NSW Reconstruction Authority

Review of the operations of the NSW Reconstruction Authority

Grants and funding arrangements

64

Community Recovery Support Fund.424 The package enabled funding to be quickly

provided to impacted councils and communities for immediate recovery and risk-

mitigation activities. The Authority said that councils found the fund to be

valuable and responsive, and it addressed eligibility gaps in standard recovery

measures.425

DRFA administration has been centralised

5.78 The Authority has recently changed the way it handles certain types of DRFA

funding. At the time of the May 2025 East Coast severe weather event, the

Authority coordinated and administered Essential Public Asset Restoration

(EPAR), Emergency Works (EW) and Immediate Reconstruction Works (IRW) in

collaboration with Transport for NSW and NSW Public Works.

426

5.79 As of October 2025, the Authority has taken over administration of this

funding.

427 This new centralised responsibility is intended to improve governance,

speed up approvals, and provide consistent support for councils.428

5.80 Mr Panuccio had concerns about the timing of the transfer taking place so close

to the May 2025 East Coast severe weather event.

429 IPWEA NSW & ACT said

there was little proactive communication from the Authority about the transition

which left councils without information.

430

5.81 As part of this change, the Authority has established a new claim system for

EPAR, EW and IRW works. This involves paying councils an initial amount of 20%

of the estimated total project cost, and then quarterly payments based on actual

and forecast expenses over reporting periods. The Authority advised that this

should ensure councils remain cash flow positive.

431

5.82 The Authority had previously created a special agreement for advance and

quicker payments following flooding across the Northern Rivers in 2022.

432

However, the Authority described this old 'tripartite' system as 'clunky' and

advised that the new claims model replaces the need to make separate

agreements with each individual council.

433

5.83 Mr Kennett acknowledged that DRFA reimbursement timelines and

administrative requirements are a 'pinch point' for councils. He said that the

Authority was working closely with individual councils and had made over $29

424 Submission 50, p 15.

425 NSW Reconstruction Authority, Answers to supplementary questions, 30 March 2026, pp 8-9.

426 NSW Reconstruction Authority, Answers to supplementary questions, 30 March 2026, p 8; NSW Reconstruction

Authority, Disaster Recovery Funding Arrangements Coordination, last updated 22 December 2025, accessed 30

March 2026.

427 NSW Reconstruction Authority, Answers to supplementary questions, 30 March 2026, p 8.

428 NSW Reconstruction Authority, Disaster Recovery Funding Arrangements Coordination, last updated 22

December 2025, accessed 30 March 2026.

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

430 Submission 43, p 5.

431 NSW Reconstruction Authority, Answers to supplementary questions, 30 March 2026, p 8.

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

433 Graham Kennett, Transcript of evidence, 20 February 2026, p 35; NSW Reconstruction Authority, Answers to

supplementary questions, 30 March 2026, p 8.