UPDATE: The City of Newcastle is pushing for urgent disaster funding to assist 16 families displaced by a landslip in New Lambton. As residents approach a second year away from their homes, financial and psychological distress is mounting with insurance support set to end by May 2026.
Residents have expressed deep concerns as they face the grim prospect of paying full market rent or managing dual housing costs for properties they cannot enter. The council will meet this week to decide on a motion urging the state government to secure special disaster funding to provide necessary support. According to local officials, these households have received “no practical assistance” while other communities affected by the same natural disaster have secured financial aid.
The council’s motion highlights that state support packages, including a $50 million Housing Support Package, are not available to New Lambton residents. “Residents continue to experience psychological stress, exhaustion, and trauma,” the motion states, detailing the ongoing impacts on children’s education and the loss of community connections due to their displacement.
On May 23, 2025, residents of 15 homes were forced to evacuate, with one additional home evacuated in late August. Concerns are growing among neighboring residents regarding the stability of their own properties and potential future evacuations, alongside fears of rising insurance premiums and declining property values.
The council is considering applying for assistance under Category D of the Australian Government Disaster Recovery Funding Arrangements (DRFA), which aims to provide tailored support when standard funds fall short. The motion asserts that other local government areas have received Category D-style support, including temporary housing programs and clean-up assistance, while New Lambton residents have been left without similar measures.
“This inconsistent approach raises clear equity concerns,” the council asserted, emphasizing the inequity faced by New Lambton residents who lost access to their homes due to a natural disaster declared by the government.
The NSW Reconstruction Authority has acknowledged the impact of the landslip but has not yet provided specific support, stating that a series of geological assessments are required to determine future safety and use of the affected site. Without state intervention, the council warns that displaced residents will suffer long-term financial, social, and mental health consequences as they remain unable to return to their homes.
The proposed funding could cover housing assistance to mitigate rental costs, financial aid to lessen mortgage stress, and access to extended temporary accommodation programs. Additionally, it could facilitate clean-up efforts and necessary geotechnical assessments for long-term housing solutions.
Councillors will deliberate on this critical issue on Tuesday. The outcome of this meeting could significantly impact the lives of families still reeling from the landslip and facing uncertainty about their futures.
For updates on this urgent situation, stay tuned as the council continues to advocate for the support these residents desperately need.
