Narrabri Council Show Investment in Long-Term Community Assets

Published on 16 October 2025

Narrabri Shire Council has completed its draft Financial Statements for the year ending 30 June 2025, which have now been referred for independent audit in line with statutory requirements.

The draft statements show an accounting deficit of $27.7 million, compared with the original budget forecast of a $309,000 surplus. While this sounds concerning, the result mainly reflects how Council records major community investments and changes in available government funding rather than a decline in financial stability.

Most of the difference, around $16.9 million, is due to the way asset upgrades are recorded. In most companies, an increase in asset value is good news because it can be sold or realised. For Council, however, our “assets” are things like roads, bridges, parks and community facilities. When these are upgraded or renewed, the remaining value of the old asset must be written off, which appears as a loss on paper—even though we’ve invested in new, improved infrastructure for the community.

The other major factor is an $8 million reduction in operational grants compared to the previous year. This reflects the conclusion of several one-off funding programs, a general decrease in funding available to local government, and money that has been spent on grant-funded projects this financial year but not yet formally acquitted. Once these projects are fully acquitted – meaning that Council has completed all reporting, the funding will be received in the next financial year.

Despite the accounting deficit, Council’s overall financial position remains sound. Independent valuations have increased the value of community assets by $38 million, and liabilities have decreased. During the year, Council also completed $36 million worth of new infrastructure and equipment, further strengthening local services and facilities.

The draft statements will now be reviewed by independent auditors, with the final audited results to be released once the process is complete. Council remains in a strong position with a clear plan to maintain financial sustainability and deliver for the community.