Overview

DSTA's role

Council's role

Overview of the Natural Disaster Relief and Recovery Arrangements
On behalf of NSW Treasury, NSW Public Works, a division of the Department of Services, Technology and Administration (DSTA), formerly known as the NSW Department of Commerce, coordinates financial assistance to councils, county councils and certain community trusts under the joint Commonwealth/State Natural Disaster Relief and Recovery Arrangements.

Other agencies administer other aspects of the assistance, for example the Roads and Traffic Authority for roadworks, the Department of Primary Industries for primary producers and the Department of Community Services for personal hardship.

The Commonwealth and the relevant State government share the recovery costs based on a formula that escalates the Commonwealth contribution once certain indexed limits are reached.

The purpose of the Arrangements
The Commonwealth/State Natural Disaster Relief and Recovery Arrangements make available financial assistance to help the community with the burden of recovering from declared natural disasters.

The financial assistance is only available to cover costs relating to an event where a Natural Disaster Declaration has been issued.

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Who Issues Natural Disaster Declarations?
For NSW, Natural Disaster Declarations are issued by the Premier or Treasurer, or their delegate. NSW Treasury is the co-ordinator of the State's Natural Disaster Relief Arrangements.  The declarations are made on a whole of Local Government Area basis.

When is a Natural Disaster Declaration issued?
The damage to an effected community must exceed $240,000 before the issue of a Natural Disaster Declaration can be considered. This limit relates not only to council infrastructure damage but also takes into account community and other eligible costs.

If council considers that its local government area has sustained damage that exceeds the $140,000 threshold and a Natural Disaster Declaration has not been issued, councils should prepare preliminary estimates and contact the relevant DSTA liaison officer, who will review them and forward to NSW Treasury for determination.

What is a considered a natural disaster under the Arrangements?
A Natural Disaster is considered to be a serious disruption to a community or region caused by the impact of a naturally occurring rapid onset event that threatens or causes death, injury or damage to property or the environment and which requires significant and coordinated multi-agency and community response.  Such serious disruption can be caused by any one, or a combination, of the following natural hazards, bushfire, earthquake, flood, storm, cyclone, storm surge, .landslide, tsunami, meteorite strike or tornado.

The following are not considered natural disasters for the purpose of Commonwealth/State Natural Disaster Relief and Recovery Arrangements: drought, frost, heatwave, epidemics or events where human activity is a significant contributing cause.

The nature of the financial assistance
The financial assistance is in the form of whole or partial reimbursement of actual expenditure.

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DSTA's role

Following a Natural Disaster declaration, NSW Public Works, on behalf of NSW Treasury, administers financial assistance to councils, county councils and certain community trusts managing infrastructure assets, such as bore water trusts.

This includes making initial contact with councils, providing advice regarding the financial assistance process and eligibility of items, assessing councils' claims and value of completed works and processing of financial assistance payments.

NSW Public Works also provides assessment services to agencies such as the Department of Community Services and the Department of Lands.

Council's role

In most areas, it is the responsibility of local government to undertake the on-the-spot emergency works and to physically restore their assets damaged by the declared disasters.

Cost collection
Councils should set up new accounting charge headings for the Declared Natural Disaster to facilitate cost collection and substantiation. The charge headings should reflect the nature of the works (Emergency and Restoration).

The breakdown of costs should be sufficient to enable NSW Public Works assessors to determine if the claimed amounts are fair and reasonable.

If it is necessary to audit council's expenditure, council will be responsible for the costs incurred.

Evidence of damage
Photographic evidence of damage will aid in establishing council's claim for financial assistance. It is recommended that council photograph areas of extensive damage prior to emergency and restoration repairs. Council should submit the photographs of damage with its claim. Councils should also keep records that demonstrate the debris removed was from council property.

Inspection of works
Council must make available suitable officers to assist any NSW Public Works inspection of proposed or completed works and provide any additional information requested to facilitate assessment of the claim.