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Cost shifting refers to the practice where higher levels of government—state and federal—transfer responsibilities for infrastructure, services, and regulatory functions to local councils without providing adequate funding.
This practice forces councils to cover these costs from their own limited budgets, often relying on ratepayer contributions. LGNSW has long opposed this practice, arguing that it undermines the financial sustainability of local government and compromises service delivery to communities.
In July 2025, Local Government NSW (LGNSW) released its latest cost shifting report. The report reveals that in the 2023–24 financial year, NSW councils absorbed a total of $1.5 billion in costs that were shifted from state and federal governments. This equates to more than $490 per ratepayer annually, underscoring the significant financial pressure placed on local governments.
Read the summary and full report below.
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