MidCoast council still out of pocket $37 million as it waits for major flood repair reimbursement

In two months time, it will have been one year since major flooding ravaged the MidCoast causing extensive destruction. 

To date, the council remains $37 million out of pocket for repairs while it waits for reimbursement from the state government’s Reconstruction Authority (RA).

Keeping up: Numerous natural disaster declarations have been hitting the state every year – whether it’s flood, fire or storms. This suggests an inevitable backlog of claims. But if extreme weather events are predicted to become more frequent and more destructive, can local councils keep up?

Waiting for payback: As of early last week, MidCoast Council had spent $43 million on emergency road flood repair damage since the major flood event in May 2025.

It has only received around $6 million back in reimbursement from NSW Reconstruction Authority (RA).

• “This is an important issue as the funds council has used have been from cash reserves that have been earmarked for certain different future projects,” a council spokesperson told the Mid North Coaster.

How does it work: Following a disaster like the major flood event in May, local councils are responsible for delivering emergency recovery works which are expected to be reimbursed down the track.

• These are referred to as Essential Public Asset Restoration (EPAR), Emergency Works (EW) & Immediate Reconstruction Works (IRW) 

The council then lodges claims with the NSW Reconstruction Authority (RA) to have that money repaid. Only restoration works of essential public assets damaged as a direct result of a disaster are eligible for funding assistance

RA’s response under microscope: A parliamentary inquiry is currently reviewing the operations of the RA and its response to the severe weather event in May. 

On February 20, Local Government NSW (LGNSW) president, Darcy Byrne, provided evidence to the inquiry committee as the leader of the peak body representing the state’s LGAs.

Byrne said delays in disaster recovering funding are “unacceptable” and are leaving many councils in “financial peril.”

On the edge: “With the exponential increase in disaster costs for local communities across NSW in recent years, there are many local councils and communities that will face financial crises if overdue funds don’t flow urgently,” Byrne said in a statement.

• “We know the local government sector is facing some real challenges with financial sustainability – particularly in rural, regional and remote communities. Having these unpaid claims on the books threatens the financial viability of these severely impacted councils”.

Kempsey Shire Council is also waiting on $6 million in disaster recovery reimbursement after it was hit hard by the May floods, inundating its CBD and destroying roads.

What next: A NSW Reconstruction Authority spokesperson told the Mid North Coaster it “continues to work closely with councils and communities impacted by the May 2025 floods”.

A MidCoast Council spokesperson said it will also continue working closely with the RA “to see those funds reimbursed”.