Review of the operations of the NSW Reconstruction Authority

Review of the operations of the NSW Reconstruction Authority

Grants and funding arrangements

67

The DRFA creates challenges for recovery partners and social service organisations

5.95 In addition to issues experienced by local councils, the Committee also heard the

DRFA creates issues for recovery partners and support agencies that work with

the Authority. DRFA restrictions limit the ability of organisations, including those

with MoUs with the Authority, to recover all costs involved with their work.

452

5.96 Australian Red Cross said these limitations include the work of incident

management teams that support and mentor volunteers in the field, and

overtime work. This places a financial burden on organisations and threatens the

sustainability of the services they provide.

453

5.97 Australian Red Cross noted that the Authority has made recent improvements to

address this and provided additional funding to support costs of a surge

workforce.

454 The Authority also funded community partners under Recovery

Services Capacity Grants that will allow community partners to recruit and train

volunteers ahead of disasters.

455

5.98 Stakeholders also observed that more sustainable funding is needed for social

services in the long term.456 DRFA is event-based and this funding model creates

service gaps that result in social services being unable to assist communities with

the long-term impacts of disasters.

457 As disasters become more frequent, the

effects begin to blend into each other creating a 'poly-crisis' environment.458

Disasters have a 'long-tail' that cause long term impacts that can take years to

recover.459

5.99 Uniting NSW.ACT observed that communities now cycle continuously through

response, recovery and preparation.

460 The event-based nature of DRFA limits the

assistance that organisations can provide to impacted communities. This is

because funding can only be used by organisations in relation to the specific

disaster they received the funding for.

461

5.100 Short-term contracts, which can last between three and 12 months, mean that

social service organisations need to be continually re-contracted. This creates an

administrative burden and uncertainty for staff.462 Legal Aid NSW and Mid North

Coast Legal Centre noted that the event-based nature of DRFA means it is not a

452 Submission 27, p 9; Jacob Walsh, NSW State Director, Australian Red Cross, Transcript of evidence, 3 November

2025, p 3; Submission 22, Uniting Church NSW Disaster Recovery Chaplaincy Network, p 5; Cara Varian, CEO, NSW

Council of Social Service (NCOSS), Transcript of evidence, 3 November 2025, p 11; Submission 14, pp 2-3.

453 Submission 27, p 9; Jacob Walsh, Transcript of evidence, 3 November 2025, p 3.

454 Submission 27, p 9.

455 Jacob Walsh, Transcript of evidence, 3 November 2025, p 3; Clare Van Doorn, Regional Director, Operations

North East, St Vincent de Paul Society NSW, Transcript of evidence, 3 November 2025, p 2.

456 Submission 22, p 5; Cara Varian, Transcript of evidence, 3 November 2025, p 11.

457 Uniting NSW.ACT, Written opening statement, 20 February 2026, p 1; Submission 14, pp 2-3.

458 Submission 22, p 5.

459 Submission 49, p 7; Submission 32, p 6; Sally Bryant, Manager, Legal Aid NSW, Transcript of evidence, 3

November 2025, p 17.

460 Uniting NSW.ACT, Written opening statement, 20 February 2026, p 1.

461 Submission 49, p 25; Submission 37, p 5.

462 Submission 37, p 6; Submission 49, pp 24, 25.