On 8 March 2024 the Hon Ron Hoenig MP, Minister for Local Government, asked the NSW Standing Committee on State Development to inquire into and report on the ability of local governments to fund infrastructure and services. The terms of reference are:
(a) the level of income councils require to adequately meet the needs of their communities
(b) examine if past rate pegs have matched increases in costs borne by local governments
(c) current levels of service delivery and financial sustainability in local government, including
the impact of cost shifting on service delivery and financial sustainability, and whether this
has changed over time
(d) assess the social and economic impacts of the rate peg in New South Wales for ratepayers,
councils, and council staff over the last 20 years and compare with other jurisdictions
(e) compare the rate peg as it currently exists to alternative approaches with regards to the
outcomes for ratepayers, councils, and council staff
(f) review the operation of the special rate variation process and its effectiveness in providing
the level of income Councils require to adequately meet the needs of their communities
(g) any other related matters.

The Hon Emily Suvaal MLC, Chair of the Standing Committee on State Development, said: 'Councils
are experiencing significant financial challenges which are threatening the long-term sustainability of the
sector. As the level of government closest to the people of this state, we owe it to councils to ensure they
can continue to deliver the important services communities expect and deserve.'

Submissions to the standing committee close on 26 April 2024. Hearings will be conducted in May 2024.

This inquiry will replace the previous iPart review that had already received public submissions.