22 August 2025

Tumut and Tumbarumba residents to vote on demerger as minister warns of rate hikes

| By Jarryd Rowley
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NSW Minister for Local Government Ron Hoenig has supported Snowy Valley Council's push for a referendum to demerge the LGA.

NSW Minister for Local Government Ron Hoenig has supported Snowy Valleys Council’s push for a referendum. Photo: Supplied.

Snowy Valleys residents will soon have to vote in a local government referendum to potentially demerge Snowy Valleys Council (SVC), with the responsible minister warning that a separation would be accompanied by massive rate hikes.

SVC was formed in 2016 when Tumut and Tumbarumba shire councils were amalgamated. Since that time, there have been several pushes by the Tumut and Tumbarumba communities to revert to the two previous local governments.

Following the local government elections in 2024, the newly elected Snowy Valleys Council voted in favour of a potential demerger and requested an investigation into a potential split by the NSW Local Government Boundaries Commission (LGBC).

This week, NSW Minister for Local Government Ron Hoenig visited the Snowy Valleys, where he gave support to SVC to prepare for a referendum asking residents if they wished for the council to be split.

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“The communities of Snowy Valleys weren’t given a choice when the former government forced the amalgamation of Tumut and Tumbarumba councils,” he said.

“It has proven to be another local government disaster inflicted upon regional NSW communities.

“The impact the amalgamation continues to have on the council, councillors and staff was made clear by the Boundaries Commission.

“Prior to coming to government, Labor made a commitment to the people of Snowy Valleys that we would support the council in holding a referendum to vote on a possible demerger.

“I know it’s been a long road to get here, but the work the council has done putting together a business case has been necessary to ensure demerging would be a viable option.”

With the green light to proceed to the next step in the process, Snowy Valleys Council can now go ahead and commence planning for a referendum. This includes public exhibition of the business case and implementation plan.

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The minister made it clear during the meeting that, as part of the referendum, residents must be made aware they will be facing rate increases and other costs to support the demerged councils, so they can make an informed decision.

The Boundaries Commission report details that rates in a restored Tumut Shire would increase by almost 15 per cent over seven years and between 45 and 65 per cent in Tumbarumba over the same period. In addition, there would be a range of increases to various fees and charges, including water and sewer, leases and licences, commercial fees and drainage.

“If there is majority support in the referendum and residents are prepared to accept the financial costs, then the council can progress with the transition work required to demerge,” Mr Hoenig said.

“If the referendum is rejected, the community and the council must respect that outcome and get on with it.

“The important thing is the communities of Snowy Valleys are given the choice to make this decision for themselves, not have it made for them by the State Government, which has no mandate to interfere with local democracy.”

Original Article published by Jarryd Rowley on Region Riverina.

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