Review of the operations of the NSW Reconstruction Authority

Review of the operations of the NSW Reconstruction Authority

Grants and funding arrangements

66

Stronger partnerships with local councils and other jurisdictions will improve collaboration

on DRFA processes and outcomes

5.90 As identified in Chapter Three, stakeholders noted the importance of

collaborative working relationships between local councils and Authority staff

throughout recovery.442 Collaboration will ensure better outcomes for the

community and keep costs reasonable.443 Mid North Coast Joint Organisation said

that future funding reforms need to be co-designed with councils and joint

organisations to ensure they are fit for purpose.444

5.91 The Committee heard that a more collaborative approach between the Authority

and councils will also help balance the need for faster recovery while still

maintaining transparency and accountability around the distribution of

funding.

445 Councils said that there are substantial audit requirements associated

with DRFA that cause delays.446 Early collaboration can support the quick release

of funding while still meeting necessary auditing requirements.447

5.92 The Committee notes that changes to the administration of funds (discussed

above) present an opportunity for more direct involvement between the

Authority and councils. The NSW Government said it developed guidance

materials for impacted councils on different DRFA funding categories following

the May 2025 East Coast severe weather event.

448

5.93 The Authority said it has good relationships with the QRA and that teams from

the two agencies have regular meetings about the design of future funding

arrangements and reform.

449 The Committee notes that the QRA was established

in 2011 and is a more mature organisation. The Committee will monitor this

ongoing working relationship and consider what changes the Authority has

implemented as part of future operational reviews.

450

5.94 The Authority is also working with NEMA and the NSW Government, and has

MoUs with the South Australian and Queensland Governments to explore best

practice in cross-state disaster related collaboration, coordination and

preparation.

451 The Committee recognises the importance of these ongoing

working relationships across jurisdictions to support better funding and recovery

outcomes in NSW.

442 Dylan Reeves, Transcript of evidence, 17 February 2026, p 7; Adrian Panuccio, Transcript of evidence, 17

February 2026, p 7.

443 Dylan Reeves, Transcript of evidence, 17 February 2026, p 7.

444 Submission 24, p 7.

445 Dylan Reeves, Transcript of evidence, 17 February 2026, p 11.

446 David Reynolds, Transcript of evidence, 20 February 2026, p 13; Dylan Reeves, Transcript of evidence, 17

February 2026, p 11.

447 Dylan Reeves, Transcript of evidence, 17 February 2026, p 11.

448 Submission 50, p 10.

449 Andrew Graham, Transcript of evidence, 20 February 2026, p 37.

450 Queensland Reconstruction Authority, Governance, accessed 13 April 2026; David Reynolds, Transcript of

evidence, 20 February 2026, p 14.

451 Andrew Graham, Transcript of evidence, 20 February 2026, p 37; NSW Reconstruction Authority, Answers to

supplementary questions, 30 March 2026, p 15.