A Port Macquarie-Hastings Council population viability assessment shows a steady decline in koala population.
In a report tabled at council's December meeting, councillors endorsed a recommendation to forward its draft Coastal Koala Plan of Management to the NSW department of planning and environment.
The plan will be reviewed in accordance with the relevant guidelines.
Once returned, the draft plan of management along with the draft koala recovery strategy will go on exhibition for 42 days.
Cr Rob Turner told the meeting, the koala plan of management was a long time coming.
"But how much of the land is state forest or Crown Land?" he asked.
"They are under no obligations to do anything about it. That makes it difficult to have good outcomes, unless we get these authorities to participate in some way.
"They - state forests and National Parks and Wildlife Servce - should be part of any solution."
Council estimates there are almost 7000 hectares of core koala habitat in the coastal area of the Port Macquarie-Hastings, generally on land between the coast and the Pacific Highway.
This habitat is home to an estimated 1600 koalas, the report noted.
"While still in an early phase of decline, this decreasing koala population trend is similar to populations that have become locally extinct or declared critically endangered such as the Port Stephens, and North Coast from Tweed to Brunswick River populations," the report said.
"This trend suggests that without intervention in the next five years, the local population will become extremely rare in 25 years and functionally extinct in 50 (years).
"As home to one of the largest populations of koalas on the east coast of Australia, there are significant benefits for council, developers and the community in having a clear strategic direction for activities related to protection of koalas and their habitat and a comprehensive koala plan of management to guide development."