City of Newcastle has joined a growing group of Australian councils calling for the Australian Government to establish a national Climate Compensation Fund, following Council’s support for a motion at its latest meeting.
Newcastle councillors Charlotte McCabe, Siobhan Isherwood and Joel Pringle have secured Council support for the proposal calling for a new national approach to funding climate adaptation, placing the question of who pays for climate resilience firmly on the Federal Government’s agenda.
The notice of motion, adopted at Tuesday night’s City of Newcastle meeting, seeks to shift more of the financial burden of climate adaptation and disaster recovery away from councils and ratepayers through a polluter pays funding model.
Under the resolution, the Lord Mayor will write to the Federal Minister for Climate Change and Energy and the Federal Member for Newcastle advocating for the proposal on behalf of Council.
A growing financial burden
In their notice of motion, Councillors McCabe, Isherwood and Pringle argue that Newcastle is already experiencing the effects of heavy rainfall, flooding, coastal erosion, heatwaves and bushfires, with increasing costs for local government, households, businesses and community organisations.
The notice points to damage to homes, businesses and infrastructure, rising insurance premiums and energy costs, business disruption, housing displacement and impacts on First Nations cultural heritage as examples of the financial pressures communities are facing.
It states that local governments are also carrying increasing costs associated with disaster response, repairing public assets and delivering resilience projects, despite having limited capacity to raise additional revenue.
“The increasing costs of climate impacts should not continue to be borne by local governments and ratepayers alone.”
Part of a wider local government campaign
The proposal builds on work already underway through the Australian Local Government Association.
Earlier this year, Newcastle City Councillors supported a motion on funding for the National Adaptation Plan for consideration at the 2026 Australian Local Government Association National General Assembly. According to the notice of motion, the proposal was subsequently supported by delegates following amendment.
According to the notice of motion, Newcastle joins the City of Sydney, Golden Plains Shire, Bass Coast Council, Mount Alexander Shire Council, Byron Shire Council, the City of Parramatta and the City of Hobart in calling for changes to how climate adaptation is funded.
As part of the resolution, the Lord Mayor will also write to the President of the Australian Local Government Association supporting the organisation’s unanimous adoption of a motion first put forward by the City of Sydney and advocating for it to become an ALGA priority policy.
What happens next
The letters will ask the Australian Government and Parliament to establish a Climate Compensation Fund, introduce a Climate Pollution Levy on coal, gas and oil export corporations to help finance the fund, create a dedicated funding stream for local governments based on the financial risks identified in the 2025 National Climate Risk Assessment and establish a Parliamentary Inquiry into the adequacy of the 2025 National Adaptation Plan.
Council is also seeking sustained legislated funding that, according to the resolution, would provide greater certainty for planning and delivering climate solutions and a just transition in Newcastle.
“The purpose of this Notice of Motion is to advocate for a polluter pays funding mechanism to support City of Newcastle to respond to and prepare for climate impacts that are causing increasing financial pressures.”
The proposal now moves beyond Newcastle, with the outcome resting on whether the Australian Government and the Australian Local Government Association choose to progress the recommendations as part of future national climate adaptation policy.
