Shoalhaven City Council staff can now access a $395 million state-funded Council Job Retention Allowance of $1500 per fortnight if their employment is impacted by COVID-19.
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"Our local council is a critical part of the local economy and it has been hit hard financially by the COVID-19 pandemic," South Coast MP Shelley Hancock said.
"As council staff were not eligible for the Commonwealth JobKeeper Payment, the NSW Government is providing $112.5 million to fund a Council Job Retention Allowance of $1500 per fortnight for three months for qualifying staff working in the NSW local government sector."
Mrs Hancock said the local government stimulus package also included $32.76 million to fund the increase in the emergency services levy for all NSW councils for 2020-21.
"This funding injection will allow Shoalhaven City Council to redirect funds to critical core services and deliver financial support for the local community," she said.
Shoalhaven City Council will also have access to low-cost loans to fund community infrastructure, with the government increasing the TCorp local government lending facility by a further $250 million.
TCorp will also be offering principal and interest payments deferrals on existing council loans upon request for the next six months.
The job retention allowance was welcomed by Shoalhaven Mayor Amanda Findley.
"It's realy pleasing to hear the state government coming on board," Cr Findley said.
"Shoalhaven City Council has made resolutions to promote the fact it's determined to keep employed as many of its workforce as possible.
"Keeping employees in public service is a really important part of the ongoing return to business as usual. Public service is also going to have a deeper role to play in the recovery."