newy.com.au – A funding package to demolish homes affected by the New Lambton landslip and compensate owners for the loss of their land is being finalised as 16 families approach a year of being unable to return home.
City of Newcastle is working with the NSW Reconstruction Authority on the next stage of recovery from the landslip, which followed extreme rainfall in May 2025 and is now recognised as the largest residential landslip in Australian history.
Residents and landowners were updated at a face-to-face meeting ahead of the one-year anniversary, with City of Newcastle saying discussions with the authority had progressed significantly since the release of a geotechnical report in February.
City of Newcastle chief executive Jeremy Bath said the report had changed the course of recovery planning.
“The report proved to be a turning point in our relationship with the RA as it demonstrated the critical severity of the landslip site,” Mr Bath said.
“Residents will soon move from insurance-funded relocation to a 12-month relocation package funded by the NSW Government. It’s important that we recognise and thank the NSW Government for supporting the residents in this way.
“We continue to work with the RA on behalf of the residents to identify a long-term solution that stabilises the ground. Sadly, these works won’t permit future development on the site.
“Given the complexity of the funding arrangements, which will require State and Federal contributions, and are not committed yet, we believe demolition works at the site aren’t likely to commence until early in 2027.
“While long-term recovery is ultimately the responsibility of the NSW Government, we are committed to collaborating in our support of the affected residents and landowners.”
The New Lambton site remains a declared Danger Area under an active evacuation notice, with residents of 16 properties unable to return home. The landslip occurred after extensive rainfall culminated in two days of intense falls, triggering a natural disaster.
Since May 23 last year, City of Newcastle has carried out emergency response and recovery work including site safety measures, fencing, signage, security and site investigations. Detailed geotechnical investigations and ongoing monitoring instigated by the council have been used to guide decisions on public safety, public infrastructure, site stability and long-term recovery options.
NSW Reconstruction Authority chief executive Kate Fitzgerald said the authority was continuing to work with the council, residents and landowners.
“Recovery from events like this takes time, and progress can at times feel slow, but the RA remains committed to supporting Council and residents as they consider future solutions,” Ms Fitzgerald said.
“RA staff continue to work closely with Council and meet regularly as they consider options outlined in the geotechnical report and plan the next steps for recovery.
“I also want to acknowledge the residents directly affected by the landslip and reassure you that we remain here to support the Council and help you navigate the recovery process.”
Mr Bath said City of Newcastle had continued to lead on-the-ground work through a Local Recovery Coordinator, while also managing property access, resident communications, legal and technical advice, and engagement with insurers and government agencies.
“We recognise the hardship faced by residents who have had to leave their homes and will continue to advocate on their behalf and keep them informed while assessments and recovery options are progressed by the RA,” he said.
“The cost of this support has been more than $2.5 million dollars so far. I’d like to thank ratepayers for their understanding in permitting us to support the 16 evacuated families with what is effectively, their money.”
Ward Three councillors Peta Winney-Baartz, Mark Brooker and Siobhan Isherwood will put forward a notice of motion at Tuesday’s council meeting to reaffirm City of Newcastle’s commitment to supporting residents and working with agencies on the recovery phase.
The motion will also thank government and non-government agencies that have assisted residents and the council, including NSW Police, NSW Public Works, Hunter Water, Ausgrid, NSW Health, Local Lands Service and the Red Cross.
City of Newcastle will mark the anniversary by hosting a barbecue to thank SES and community volunteers for their service during the extreme weather that hit the Hunter in May 2025.
