State rejects rates relief request for New Lambton landslip households as Newcastle steps in

newy.com.au – City of Newcastle has criticised the NSW Government for rejecting a request to cover council rates for 16 New Lambton households displaced by a landslip in May 2025.

The council says residents remain unable to return to properties inside a declared danger zone while investigations continue, and it has renewed calls for the NSW Reconstruction Authority to provide the same disaster assistance available to other affected communities.

Newcastle councillors voted in September to seek an “act of grace” payment from the State Government to cover annual council rates for the affected property owners for 12 months from 1 July last year. The council said it has since received a letter from NSW Recovery Minister Janelle Saffin rejecting the request.

City of Newcastle chief executive Jeremy Bath said the refusal contrasted with “the $40 million rates relief provided to victims of the natural disaster that hit the Northern Rivers in 2022”.

“It’s disappointing that the NSW Government continues to ignore the residents of New Lambton who have been displaced from their homes since the landslip occurred in May last year,” Bath said.

“The NSW Government has rightfully been very generous in its support of residents living on the mid and far north coast who were also impact by the same natural disaster in May last year. For reasons unknown, not one dollar has been provided to those in Newcastle.”

The council said it would proceed with its own process to provide financial assistance, through a donation equal to the rates paid on the properties for the 2025/26 financial year. It said the Local Government Act prevented councils from waiving rates and charges, and estimated the measure would cost ratepayers $45,600.

Ward 3 councillors Siobhan Isherwood, Peta Winney-Baartz and Mark Brooker again urged the NSW Government to step in, arguing the reconstruction agency was created to help communities recover after natural disasters.

“The Reconstruction Authority was set up to help communities recover from natural disasters. Our residents need help while they navigate the uncertainty and disruption and the financial challenges that they’ve been dealing with since May 2025,” Isherwood said. “It is well past time for the State Government to step in and help manage the load.”

Winney-Baartz said she would continue to advocate for the affected families and work with the NSW Government “to achieve tangible supports for these families”, while Brooker said council had done all it could through the current year’s rates relief.

Newcastle said a geotechnical report into the landslip was being peer reviewed by NSW Public Works and Transport for NSW and was expected to be received in late February. The council said it would use the findings to continue advocating to the NSW Reconstruction Authority and elected representatives for support through the Disaster Recovery Funding Arrangements.