Ratepayers won't have to foot the bill for a $169,000 spike in an emergency services levy contribution facing Port Macquarie-Hastings Council.
The council will fund the increase out of the 2019/20 operational plan and look for savings in other areas.
The hike in the council's 2019/20 emergency services levy contribution equates to a 20 per cent increase.
Revenue NSW collects the levy.
Local Government NSW has taken a stand on the emergency services levy increase confronting the state's councils.
The peak industry association's State Budget submission has called on the state government to commit to fund the $19 million increase in councils' emergency services levy for 2019/20.
"Local government strongly supports the need to provide better workers' compensation coverage for firefighters," the submission said.
"However, councils are deeply disappointed with the lack of consultation or advance notice, particularly at this time when budgets for the coming year are already committed.
"Many councils will be required to cut infrastructure and service delivery over the coming year as a result."
The Local Government NSW submission said the impact of the cost shift was greatest for rural and regional councils with some receiving increases as high as 26 per cent.
Minister for Police and Emergency Services David Elliott said the NSW emergency services levy would increase to ensure our firefighters diagnosed with cancer received the medical care and support they needed and deserved.
"Firefighters put their lives on the line to keep us safe and these changes ensure they receive the support they require in their hour of need," he said.
The extra support will be funded as part of a cost-sharing arrangement with insurers, councils and the government.
Insurers will meet 73.7 per cent of the cost, government will provide 14.6 per cent and councils 11.7 per cent.
"This cost-sharing arrangement is consistent with how the emergency services levy has been funded historically," Mr Elliott said.
The NSW Parliament passed the Workers Compensation Legislation Amendment (Firefighters) Bill 2018 with support from across major and minor parties.
This enables eligible firefighters diagnosed with any of 12 specified primary cancers, and who meet the corresponding minimum qualifying periods of service, to automatically be presumed to have developed the cancer because of their firefighting work or volunteer service.
Similar provisions have been introduced in most other states and territories and the Commonwealth.
Meanwhile, Mr Elliott said the government would continue to support councils.
"We have provided more than $9 billion to councils since 2011, to deliver and improve local infrastructure, services and facilities for their communities," he said.
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