What's behind Wollongong council's $12.8 million budget swing?
How the surplus turned into a deficit
Wollongong City Council’s operating result has shifted from a budgeted $11.3 million surplus to a revised $1.5 million deficit, according to the March 2026 Quarterly Review Statement to be tabled at Monday’s council meeting.
The bulk of the swing comes from a $13.4 million bookkeeping change. Council moved a range of construction costs from its capital budget to its operating budget after determining they did not meet the threshold for capitalisation under accounting standards - meaning the work consumed resources without adding lasting value to any asset. The affected projects include asbestos removal at the Southern Suburbs Community Centre and Library site, and the shifting of Sydney Water and Endeavour Energy infrastructure to make way for the West Dapto Road upgrade.
Council has emphasised the change is a reporting adjustment only and has no impact on its overall cash position.
On the revenue side, $17.3 million in Planning Agreement contributions, largely from the Calderwood development, has been deferred, affecting the timing of expected income.
The review also flags emerging pressures on future budgets. Rising fuel costs and interest rates are dampening travel demand, which council warns could hurt revenue from its commercial tourist parks. Construction and procurement costs across local government are also trending upward.
The quarterly review will be considered by councillors at Monday’s meeting.
If you’re keen to check out the business papers before the meeting, hit here. Be warned, there’s 998 pages.
Headlines you may have missed this week
Calderwood school slated for 2028 opening
It was a jam-packed visit for Premier Chris Minns and his cabinet this week - from networking to announcing, meeting, greeting, listening and, of course, that fateful community cabinet which breathed new life into mental health charity, The Man Walk.
They managed to fit in a spot of sod-turning, too. For the families at Calderwood it was news that construction work on the suburb’s public school should, weather permitting, begin on June 17 which was most notable.
The first intake will start the new school year at Calderwood Public in 2028 with at least 550 students, 27 modern classrooms including three support classrooms, a library, a multipurpose hall, a covered outdoor learning area, admin facilities and a canteen Also on-site will be public preschool with a weekly capacity for 120 children.
Member for Kiama Katelin McInerney was delighted by the ceremonial sod-turning: “This is a promise made and a promise kept. I campaigned on delivering a new school for Calderwood because I knew how desperately it was needed, and today we are breaking ground.”
“With expanded capacity and state-of-the-art facilities, this project will support children’s learning and social development from an early age and meet the needs of the community as more families move into the area,” Minister for the Illawarra & the South Coast Ryan Park said.
Another project coming out of the ground is the new Shellharbour Hospital
Judge fines X $465,000 for online safety breach
MELBOURNE, Australia (AP) — An Australian judge fined X Corp. $650,000 on Thursday for failing to provide information to an online safety watchdog in 2023 about how it tackled child sexual exploitation content.
Federal Court Justice Michael Wheelahan also ordered the Texas-based social media giant to pay $100,000 of eSafety Commissioner Julie Inman Grant’s court costs within 45 days.
The ruling ends a three-year legal battle in which X had argued it was not obliged to answer eSafety’s questions.
X admitted it contravened Australia’s Online Safety Act by failing to provide a report that fully answered questions posed by eSafety in a transparency notice issued on Feb. 22, 2023, the agency’s lawyer Christopher Tran said. X had to provide the answers by March 29 that year.
X’s lawyer Perry Herzfeld told the judge eSafety did not allege that the contravening conduct continued after May 5, 2023.
“That was a period of change and transition for the company,” Herzfeld said, in a reference to Elon Musk taking over.
eSafety had sent the notice to Twitter Inc., which merged with X in March 2023.
Tran said both X and eSafety agreed the fine was appropriate.
- ROD McGUIRK Associated Press
A life of influence and purpose celebrated
The University of Wollongong invites the Illawarra community to celebrate the life and legacy of Emeritus Professor Kenneth Richard McKinnon AO, the University’s second Vice-Chancellor and one of Australia’s most influential educational leaders.
Family, friends, colleagues, alumni, students and community members are all welcome to come together and reflect on his extraordinary contribution to education, public life and the development of UOW - and the region.
The celebration will be at University Hall on the UOW Campus from noon, June 12. Register now: uow.info/1db2yr
The big ticket
If you’re in need of a giggle and comedian Dave O’Neil is your bag, then it’s IPAC on Friday night for you! He’s adamant he’s a GenXer but it’s his show “Don’t Call Me Boomer” that’s on for one night only. Tickets are $40. Right here