Carrathool Shire Council has announced a net operating surplus of approximately $4.643 million for the 2025/26 financial year, a figure that stands in stark contrast to its neighbor, Central Darling Shire, which is currently on the NSW Auditor General’s watchlist for financially vulnerable councils. This positive financial position was confirmed during the council’s ordinary meeting in February, where the second quarter budget review revealed a consolidated operational plan showing a surplus before capital grants and contributions.
The general fund is projected to contribute a surplus of $4.379 million before capital, reflecting a stable financial footing for Carrathool Shire. As of 31 December 2025, the council’s total cash and investments amounted to $43.18 million across various funds. The majority of this total, approximately $42.98 million, is held in term deposits and on-call investment accounts with major banks, including Commonwealth Bank of Australia, Bendigo Bank, Westpac, National Australia Bank (NAB), and IMB.
As of 31 January 2026, the investment portfolio had slightly decreased to around $42.84 million, influenced by interest earned and reinvestment activities during the month. Robert Rayner, Director of Corporate and Community Services, confirmed that all investments comply with the Local Government Act 1993 and the council’s Investment Policy 019, which sets exposure limits based on the credit ratings of the institutions involved.
While the financial report demonstrates a robust position, concerns regarding diversification within the investment portfolio were noted. A significant concentration exists, with Westpac accounting for approximately 27 percent, IMB at 28 percent, and NAB at 22 percent of the term deposit portfolio. Although all institutions are within policy limits, the high concentration raises potential risks, prompting the council to consider diversification strategies in future investment decisions.
In addition to its financial review, the council approved the sale of nineteen properties across the shire due to unpaid rates and charges exceeding five years, which total $271,885.71. The council has increased its impairment provision for rates and charges from $98,246 to $168,246, reflecting a more realistic outlook on the collectability of these debts.
This financial update highlights Carrathool Shire’s proactive management and contrasts sharply with the financial difficulties facing some neighboring councils, showcasing the strengths of its operational strategies.
