For the first time since a wave of controversial council mergers nearly a decade ago, the New South Wales Government will reverse an amalgamation — formally announcing the planned demerger of the Cootamundra-Gundagai Regional Council (CGRC).
Originally formed in 2016 as part of the Coalition government’s initiative to consolidate 44 local councils into 19 larger entities, CGRC combined the former Cootamundra and Gundagai Shire Councils in southern NSW. The merger was intended to streamline operations and reduce costs, but it has since been widely criticised by local residents and leaders.
Speaking in Gundagai on Thursday, Local Government Minister Ron Hoenig confirmed the decision to demerge, describing the forced merger as a “disaster.”
“Merging councils for the sake of it simply doesn’t work,” Hoenig told a crowd of more than 50 locals. “This fight should never have been necessary, but I’ve spent two years working to fix it.”
Years of Controversy
The council merger program was divisive from the beginning, with several councils challenging the policy in court. In 2017, then-premier Gladys Berejiklian allowed 14 councils to remain independent, backing away from some of the initial proposals. CGRC, however, remained merged — until now.
In 2022, the Coalition government announced a reversal of the Cootamundra-Gundagai merger, an event labelled “Independence Day” by local media. The new Labor government, elected in 2023, introduced legislation in 2024 offering a formal process for demergers. Under this framework, councils must present a strong business case, consult the community, and be reviewed by the NSW Local Government Boundaries Commission.
Emotional Reaction From Local Leaders
CGRC Mayor Abb McAlister was visibly emotional during the announcement, reflecting on the long struggle to reverse the merger.
“It’s been a tough road — a life-changing experience — but we finally got the outcome we wanted,” he said.
“Now we begin a new journey, and I’m confident the minister and the state government will fully support us.”
A transition office will be established to oversee the complex process of separating the councils, including asset division, staffing, funding, and service allocation. The Office of Local Government will provide support and help secure funding for the transition, which is expected to take up to 12 months.
Locals Welcome Return to Independence
Many residents in Gundagai expressed relief and satisfaction with the decision. Local Dale Chadwick described himself as “absolutely elated”, saying the original merger led to a “loss of identity” and was imposed without adequate community consultation.
“We had nothing in common with Cootamundra,” he said.
“It was forced on us, and we weren’t even told in person.”
Former CGRC mayor Charlie Sheahan echoed the sentiment, calling the amalgamation a “failure — both financially and socially.”
The formal split of CGRC sets a significant precedent, marking the first time a merged NSW council has been dissolved under the new demerger pathway — a move likely to influence other councils considering similar action.
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