NSW council demerger stopped in its tracks

Sydney’s Bayside Council has halted intentions to de-amalgamate after community rebuffed the plan.

A recent council survey asked residents whether they would agree to pay extra rates or a $600 one-off fee to pay for demerger costs, estimated at around $50 million. The answer that came back was a resounding no. “Large unnecessary cost for little benefit”, was the general community consensus.  

Bayside Council was the result of a forced merger of the City of Botany Bay and the City of Rockdale councils in 2019.

With a population of around 182,000 residents, the Bayside local government area stretches over 29 of Sydney’s southern and south-eastern suburbs – including Arncliffe, Banksia, Rockdale, Kogarah and Wolli Creek.

Earlier this year, the NSW government introduced legislation that provides a legal pathway for forcibly merged councils to part ways.

However, there’s a catch for councils wanting to take up the opportunity to de-amalgamate. The legislation requires councils that want to divorce to fund their own de-amalgamation, and to have the backing of the majority of the community – which was far from forthcoming from Bayside residents who overwhelmingly gave the thumbs down, with 79% of 401 respondents preferring council to remain as is.

As a result, council last week voted to halt the move – unless the state government either foots the bill or reverses the decision of the previous Liberal government. Cr Michael Nagi – who moved the motion – said on the night of the vote: “I just want to put this to bed and if someone is serious about de-amalgamation, let the state government deal with it.”

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