Planning is now underway as Cootamundra-Gundagai Regional Council (CGRC) moves to demerge, allowing the former Cootamundra and Gundagai shire councils to be re-established. Photo: CGRC.
Cootamundra–Gundagai Regional Council (CGRC) has released a detailed update on the progress of its demerger, moving to address community concern and speculation that the long-running process had stalled.
In the lead-up to Christmas, rumours circulated across the shire suggesting the demerger had lost momentum, with questions raised about governance arrangements, the apparent lack of public updates and whether the NSW Government was satisfied with the pace of progress.
Council has now confirmed that key steps have been taken since the NSW Government approved the demerger in July 2025, including the establishment of a councillor transition committee and the appointment of an independent transition manager.
Minister for Local Government Ron Hoenig approved the demerger last year, allowing the former Cootamundra and Gundagai shire councils to be re-established.
The move followed years of community advocacy, formal submissions, and inquiries into the effectiveness of the 2016 merger, which was part of the NSW Government’s local government reform program.
From the start, the merger was controversial, with critics citing differing service needs and community identities, while supporters argued a larger council would improve efficiency and financial sustainability.
Calls for a demerger grew, culminating in public inquiries by the NSW Boundaries Commission in February 2025, which recommended the split.
With the councillor transition committee in place, in early December the council announced the appointment of Peter Bascomb as transition manager.
With a background as general manager of Balranald Shire, Queanbeyan-Palerang Regional, and the former Tumbarumba Shire Council, and five years as CEO of Snowy Monaro Regional Council, Mr Bascomb brings extensive local government experience and expertise in managing complex organisational change.
CGRC said that since his appointment Mr Bascomb had undertaken a detailed review of the Transition Plan and Financial Sustainability Plan (FSP), documents developed over the two years leading up to the Boundaries Commission inquiries.
He also reviewed submissions made over the past six years, reflecting the breadth of community engagement in the demerger process.
Council said Mr Bascomb and the transition committee recently held their first workshop, during which they outlined the project’s objectives.
These focus on two main priorities: formally proclaiming the two new councils and establishing them as financially and operationally sustainable organisations.
Council said the proclamation phase was expected to take around six months once all required documentation was submitted to the NSW Government.
The larger task, it said, was establishing two councils that could operate independently from day one.
According to CGRC, unlike a merger, a demerger does not allow new councils to simply inherit staff, organisational structures, service programs or operational plans.
Council said each new council would require its own integrated planning and reporting documents, governance arrangements, policies and organisational structures to function effectively.
While a detailed project timetable is still being finalised, current planning assumes the new councils could commence operations on 1 July 2027 but to meet that timeframe, the council said, a substantial portion of the work would need to be completed by December 2026.
Through early 2026, attention will be on the main elements of the demerger: financial sustainability, special rate variations (SRV), staffing, asset division, technology, planning and environment and legal matters.
Mr Bascomb acknowledged the challenges involved, noting there was no established template for council demergers in NSW.
“When dealing with such a sensitive issue as the demerger, there is always potential for disputes to arise, particularly given there is no established template for a council demerger,” he said.
“I will be examining dispute resolution mechanisms and working to finalise a project timetable, which will be presented to the next transition committee meeting.
The timetable will be partly dependent on further advice from the Office of Local Government,” Mr Bascombe said.
Council has also flagged improved communication with residents, announcing plans to launch a dedicated demerger webpage in coming months.
The site, it says, will provide access to demerger-related reports and details of transition committee meetings as the process continues.
