Media Releases

Boundaries Commission report on Inner West Council demerger proposal released

Ron Hoenig – Minister for Local Government

Friday, 15 March 2024

On Wednesday 13 March I received the NSW Local Government Boundaries Commission’s report on Inner West Council’s business case for de-amalgamation.

The report recommends the proposed demerger of Inner West Council should not proceed, stating this would be the best outcome for residents and ratepayers of the current local government area.

I have considered the findings and accept the Boundaries Commission’s recommendation.
Today, I have exercised my decision making powers under 218CC(5) of the Local Government Act to not support the proposal put forward by Inner West Council for demerger.

I accept the Commission’s view that, “the financial disadvantage associated with a de-amalgamation significantly outweigh any potential financial benefits from a de-amalgamation.”

There is compelling evidence that the business case presented by Council will cost the community more money than it saves.

I have been clear and on the record that I will not allow councils to demerge if they cannot prove they will be financially viable.

Consigning three new councils to budget deficits each year until at least 2028 would not be in the best interests of the Inner West community.

I understand sections of the community may be disappointed but this decision delivers certainty for the people of the Inner West.

The community has good reason to be confident in the infrastructure and services being delivered by Council under the leadership of Mayor Darcy Byrne and General Manager Peter Gainsford.

Last year Inner West Council was awarded the A.R. Bluett award, which recognises outstanding achievement in local government amongst the 128 councils across NSW.

It is important demerger proposals are independently examined and considered on the basis of their merits and I thank the Boundaries Commission for their work throughout this process.

The report can be found here:

MEDIA: Clare Dowswell | Minister Hoenig | 0448 540 073