Future Ready Cabonne: Increasing the Understanding

Council has found it increasingly difficult to achieve financial sustainability and meet the integrated Planning and Reporting (IP&R) Guidelines.

Cabonne Council, like many rural and regional councils across New South Wales and Australia, is facing a structural financial sustainability challenge that cannot be resolved through short‑term measures alone. These challenges arise from long‑standing constraints on revenue growth, increasing service delivery costs, and the ongoing responsibility to maintain a large and ageing asset base in a geographically dispersed local government area.

Council’s audited financial results for the period 2021 to 2025, together with forward modelling in the Long‑Term Financial Plan (LTFP) 2026–2036, highlight persistent operating deficits before capital grants, asset renewal investment below sustainable benchmarks, and a growing funding gap under existing rate‑pegged revenue settings. Without intervention, these trends will continue to place pressure on Council’s financial capacity and its ability to maintain services and infrastructure at acceptable and equitable levels.

Why aren't council proceeding with making a decision regarding a Special Rate Variation proposal at this point in time?

At the time of preparing the business paper for the 28 April 2026 Ordinary Council Meeting, council was acutely aware of the significant upheaval and instability currently affecting global, national, and regional economies, largely driven by conflict in the Middle East and the resulting energy market shocks. At present, it remains unclear whether these impacts will be short‑term disruptions, medium‑term economic disturbances, or longer‑term structural challenges with potentially severe consequences.

Given this context of heightened and ongoing uncertainty, council chose not to proceed with an application to the NSW IPART in 2027 and postponed making this important decision regarding a Special Rate Variation (SRV) for a further eighteen months for a potential 2028 application to the NSW IPART. While council’s financial sustainability challenges are both serious and pressing, it is critical that council ensures the community has a clear and thorough understanding of the implications of both proceeding with an SRV or alternatively if council were not to pursue any rate increase. This includes the likely impacts on council’s medium- to long-term service levels and the condition of its assets. This would likely be extremely complex and difficult at the present time with such economic uncertainty.

Extending the consultation and information sharing phase over a longer period will assist in improving community understanding of council’s financial challenges. It will also provide council with greater capacity to balance its decision making against the currently unknown medium- to long-term economic impacts of the conflict in the Middle East. This includes consideration of council’s own ability to operate, maintain, and renew assets and deliver services during this period of economic uncertainty.

Integrated Planning and Reporting 2026-2027

The Integrated Planning and Reporting (IP&R) framework is prescribed by the Local Government Act 1993. The IP&R framework allows councils to draw its various plans together, to understand how they interact and inform each other, and to get maximum benefit from their efforts by planning holistically for the future.

At the 28 April 2026 Ordinary Council Meeting, council considered the Integrated Planning and Reporting 2026-27 documents, comprising of:

• Delivery Program 2025-2029,
• Operational Plan 2026-2027 incorporating the Budget and Fees and Charges, and
• Resourcing Strategy 2026-2036 incorporating the Long-Term Financial Plan, Strategic Asset Management Plan and Strategic Service Management Plan.

The Integrated Planning and Reporting 2026-2027 documentation were placed on public exhibition for 28 days. Any submissions received will be reported to the 23 June 2026 Ordinary council meeting for consideration.

How can I have my say on the Integrated Planning and Reporting documents?

Submissions closed Tuesday, 26 May 2026.

How can I have my say on the Future Ready Cabonne: Increasing the Understanding project?

Make a submission via:

• Online: Use the Future Ready Feedback form below
• Email: council@cabonne.nsw.gov.au(External link)
• Post: General Manager, PO Box 17 Molong NSW 2866

Any person may make written submissions to Cabonne Council about the project.