Daily News Round Up – 23 May 2026

Very local, state, national and the wider world, in everyday language, for people who haven’t got all day.

From a Council meeting that could decide who runs Kiama, to a budget fight reshaping Canberra and the Iran war still at the petrol pump, here’s the local-to-global wrap for 23 May 2026.

Betty from Blacktown and her brother Kevin from Kiama, making sense of the world’s chaos the only sensible way: over toast, a strong cuppa, and a good long natter on the phone. That’s what this Catch Up is for.

Very Local: a special Council meeting you’ll want to know about

Council has called an Extraordinary Meeting for 5pm this Wednesday 27 May, and there’s only one item on the list. That alone tells you it’s BIG. It’s Council’s formal response to the Minister’s proposed changes to the Performance Improvement Order, the “lift your game” notice that’s been hanging over Kiama. Here are the bits that caught my attention.

The big stick is now named out loud. The order spells out what happens if Council doesn’t lift. First a Financial Controller could be parachuted in to take the wheel on the money. And if that’s not enough, the Minister can suspend the Council entirely and install an administrator. In plain terms, our elected councillors could be sent home and an appointee put in charge. That’s the shadow behind every budget decision being made right now.

The good news, said out loud by the Minister. It’s not all stick. The Minister has handed Council an extra year to balance the books, now out to 2027-28, and openly acknowledged Council has made real progress. Better still, he’s pushed back on Council’s own deeper cuts, saying he’s worried about what slashing services would do to the community. So the bloke holding the order is actually arguing for gentler cuts, not harder ones. Worth remembering next time someone says Sydney is out to gut us.

Your bins are safe. The order flatly bans Council from outsourcing domestic waste services. The Minister reckons the small saving wouldn’t be worth the long-term loss to the community. Council half-agrees but is quibbling over the wording, asking that “waste management” be narrowed to “waste collection,” because it doesn’t run its own tip and needs to keep using outside contractors to cart rubbish away.

Jobs versus services, the $7 million question. This is the guts of it. Council has to close a $7 million gap between what it earns and what it spends. The order says do the gentler stuff first, the efficiency savings, before reaching for the big staff cuts. Here’s the eye-opener from Council’s own response. There were two options on the table. The bigger-saving option, $2.7 million, would mean axing community services, winding back tourism, and cutting library and Leisure Centre hours. The other saves less, $1.8 million, but hits staff numbers harder. Council is effectively saying it would rather restructure its own back office than gut the services residents actually use. That’s the choice to watch.

The accounting fight that sounds dull but isn’t. Council has lobbed back a sharp point. It says the Office of Local Government measures its performance in a way that even the NSW Auditor-General disagrees with. Council reckons that if you measured every council in the state the Auditor-General’s way, around 90 of them, roughly seven in ten across NSW, would be running at a loss. The unspoken message: don’t single Kiama out as uniquely hopeless when most of the state is in the same boat.

And yes, the parks again. Remember our holiday parks question? It’s here in black and white. The order tells Council to review its “strategic assets and revenue opportunities,” and Blue Haven Terralong gets its own special mention, with Council ordered to prepare a business case on whether to keep it, lease it, partner it out, or sell it, partly because of unresolved fire safety problems. So the asset shake-up isn’t a rumour. It’s a written instruction from the Minister.

The bottom line: this one meeting is the whole story in miniature. A small council under real pressure, an extra year of breathing room, a Minister who actually wants the cuts softened, and a quiet but crucial choice brewing between trimming the back office and trimming the services we use. It’s livestreamed on the Council website if you want to watch.

Across NSW (State)

A grim run on the roads this week, worth a mention if only because it’s the sort of thing that makes you drive a bit more carefully. Three people died in a two-car crash at Sans Souci in Sydney’s south early this morning, and there’ve been separate fatal crashes out near Warialda and Mudgee in the past few days. A sobering stretch.

On the brighter side, Vivid Sydney is now in full swing, lighting up the city every night until 13 June. If you or the family fancy a night out, the light walk and the drone shows are free, which counts for a lot just now. Rug up. It’s proper winter.

Across the Country (Federal)

The politics is getting willing. The big national story is the scrap over Jim Chalmers’ budget and its tax changes, and it’s reshaping the whole landscape. One Nation has surged in the first poll since the budget, and the Coalition, now split after the Nationals walked out earlier in the year, is promising to hand money back to workers by tying tax rates to inflation. The Opposition under Angus Taylor is also floating cutting welfare for non-citizens, which has stirred plenty of anger. The short version for the kitchen table: tax and cost of living are the whole ballgame now, and the minor parties are the ones cashing in.

The same money squeeze, everywhere. Notice the thread. The fight in Canberra over budgets and tax is the exact same fight playing out at our Council, just with more zeros. Everyone from the Treasurer to our Mayor is wrestling the same problem: not enough coming in, too much going out.

Around the World (International)

The Iran war grinds on, and it’s still about your petrol. The ceasefire in the US and Israel’s war with Iran is holding, just, but more than 400 people have been killed since it came into effect in mid-April. The latest twist: Iran’s Supreme Leader has reportedly ordered that the country’s enriched uranium not be sent abroad, which is the sort of thing that keeps everyone nervous. The Strait of Hormuz disruption is still rippling through global fuel prices, which is why petrol stays dear here at home.

Russia and China cosy up further. Vladimir Putin has been in Beijing meeting Xi Jinping, the two of them talking up closer ties, just a day after Donald Trump left the same city. Meanwhile the war in Ukraine drags on, with reports Russia’s economy is starting to wobble under the strain.

The bottom line

It all joins up, Betty. A war on the other side of the planet keeps petrol dear, which feeds the cost-of-living squeeze that’s shaking up politics in Canberra, which is the very same money fight our little Council is having on Wednesday night, just closer to home and with our library hours and bins on the line. Everyone’s wrestling the same beast. Not a bad lot to talk over with Kevin and a cuppa.

Sources: Kiama Municipal Council agenda, NSW Police, SBS, Yahoo News Australia, Al Jazeera, Sydney Morning Herald, and others.

A note on Betty and Kevin: Betty grew up in Kiama before life took her to Blacktown. Her brother Kevin still lives in their old home town. Keeping up with what’s happening down the coast is partly nostalgia for the place she came from, but mostly it’s how she and Kevin fill those long phone calls she looks forward to all week. That’s what this Catch Up is really for. Not just the news, but the conversations it keeps alive.

Kiama Council had the playbook. Five councillors voted not to use it. The union did it anyway.

Council voted not to ask the Minister. The union asked anyway. Nobody thanked Cr Cains.

New to this issue?

This post is part of a series covering Kiama Council’s budget, the holiday parks proposal and the Performance Improvement Order. If you want the background before diving into the detail, the earlier posts are here:

  1. Council is counting on you not reading this – submission guide
  2. Ron Hoenig just put Kiama Council on notice. Here is what I said and why you should too.
  3. Kiama Council wants submissions on a dead budget.

Start there. Then come back here.

This is my reading of the public record. Happy to be corrected.

On 21 April 2026, Cr Mike Cains moved a motion that Kiama Council write to the Minister for Local Government asking three specific questions about the budget, including whether the cuts proposed in the draft budget were actually necessary.

Council voted 5 -3 to say no.

For: Brown, Cains, Tatrai

Against: Larkins, Lawton, Matters, McDonald, Warren absent from the vote Draisma

Three weeks later, the Minister answered the questions anyway. The cuts are no longer necessary. The community got an extension. Council didn’t ask for it. The union did.

And the community is still being asked to submit on the cuts-driven draft budget by Saturday 24 May.

Here’s what happened.

Cr Cains’ motion asked the Minister three things:

(a) Whether a failure by KMC to project a balanced budget in the 2026/2027 financial year would trigger the appointment of an administrator;

(b) Whether short-term deficit budgeting, if presented alongside a long-term financial sustainability strategy, is considered acceptable; and

(c) The extent to which KMC is expected to balance immediate fiscal constraints against maintaining essential services, community infrastructure, and economic activity.

The Minister has now answered all three. No, an administrator is not being appointed. Yes, staged deficit budgeting with a long-term strategy is the path. Yes, the impact on services matters and the deadline can move to accommodate it.

The questions Cains wanted Council to ask have all now been answered. Council just didn’t ask them.

Council had been through this exact process two years earlier.

At the same 21 April meeting, two letters from Minister Hoenig were tabled in front of councillors.

A letter dated 30 January 2024 – Hoenig’s Notice of Intention to Vary the existing PIO, sent to CEO Jane Stroud, giving Council 28 days to make submissions.

A letter dated 23 May 2024  Hoenig’s variation of the PIO, issued after Council had formally engaged and made its submission.

The 2024 correspondence is the exact playbook for getting a PIO variation. Council had it on the table on the night Cains moved his motion. Five councillors voted not to use it.

The union didn’t wait.

On 9 April 2026, the Illawarra Mercury reported the United Services Union had emailed its members confirming it was actively pursuing a meeting with the Minister to seek an extension. The email said:

“An extension will avoid the need for immediate cuts, since the losses can be drawn out which means the need to cut positions and services is less immediate.”

That’s two weeks before Cains moved his motion. The union had already identified the path. It was already walking it.

Council sent the cuts out for exhibition anyway.

At the same 21 April meeting where the Cains motion was lost, Council unanimously endorsed the cuts-driven draft budget for public exhibition.

The same meeting also noted, in a separate resolution about the Reflections unsolicited proposal for the holiday parks, that any proceeds “will be incorporated into the draft budget, resulting in the potential elimination of the budget deficit.”

So at the meeting where Council voted not to ask the Minister, Council also acknowledged the cuts might not even be necessary.

And then sent the cuts-driven budget out for public exhibition five days later.

14 May 2026.

3:25 PM  Kiama MP Katelin McInerney issues a statement thanking the United Services Union, staff, community members and her petitioners.

4:26 PM  Minister Hoenig announces the proposed PIO variation.

Late afternoon,  Council “welcomes the extension.” The CEO thanks the United Services Union “for its strong collaboration and partnership in making the PIO request to Minister Hoenig.” The Mayor thanks the Minister for meeting with him at Parliament House.

Nobody thanked Cr Cains.

One more thing worth noting.

The minister also required council to strengthen its financial reporting to the Office of Local Government. Four years into a Performance Improvement Order. The community is entitled to ask what that means for the accuracy of the budget documents currently on exhibition.

What the record shows.

A councillor formally proposed the path. Council voted it down 5–3. The union pursued the same path externally. Our MP Katelin McInerney campaigned. The community wrote directly to the Minister. The extension came through. Council welcomed it.

The CEO publicly thanked the union that lobbied around her own draft budget.

The Mayor publicly thanked the Minister for the outcome he had voted three weeks earlier not to ask for.

The community is still being asked to submit on that now dead draft budget by Saturday 24 May.

The submission period should be extended. Full stop.

This is all your submission needs to say. Copy it. Send it.

“Given the Minister for Local Government proposed a variation to the Performance Improvement Order on 14 May 2026 extending the budget deadline by twelve months, I ask Council to pause the exhibition period, revise the draft budget to reflect the new timeline, and give the community adequate time to respond.”

Add your name and address. Send it to yoursay.kiama.nsw.gov.au and council@kiama.nsw.gov.au and councillors@kiama.nsw.gov.au  before 24 May.

Step by step submission guide here

A note from me. I’m a community member trying my very best to make sense of this bombardment of information and what it means for our town and our families. If I’ve got something wrong, tell me and I’ll fix it. If I’ve got something right, send your submission before 24 May.

Kiama Council wants submissions on a dead budget

A timeline of the farce. More time for the process, less time for the public.

The federal budget had a good run on the front page. Then Kiama Council kept asking the community to make submissions on a draft budget the CEO had already confirmed was obsolete, and stole the show. You can’t write this stuff. Except they did. In two media releases on the same day. Then again on social media. And again. And again.

This is my understanding of the timeline from the public record. Happy to be corrected.

  • 7 May  Mayor McDonald and CEO Stroud annouce they met Minister Hoenig at Parliament House. Mayor says he is “confident of a positive outcome” on the PIO.
  • 13 May  Council posts on social media that “budgets are officially having a moment” and asks the community to submit on the draft budget by 24 May
  • 14 May  Council publishes first media release of the day. It announces an Extraordinary Meeting on 30 June and mentions a “potential” ministerial extension to the PIO. The reason given for the delay: staff need more time to read community submissions.
  • 14 May, 3:25 PM  Member for Kiama Katelin McInerney issues a statement welcoming the extension and acknowledging the United Services Union, staff and community members who advocated against the proposed budget cuts.
  • 14 May Council publishes its second media release of the day, welcoming the PIO  extension. The CEO confirms the services proposed for cutting in the draft budget will now be retained. This is very interesting and I will give it some more thought. Council CEOs do not, as a rule, publicly thank the union that has been campaigning against their own draft budget. That is not standard practice
  • 14 May, 4:26 PM The Minister’s office issues a media release proposing the extension.
  • 24 May Submissions still close. On a budget the CEO has confirmed needs to change.
  • 30 June  Extraordinary Meeting. Staff get the extra time. The community does not.

Read that again.

The CEO has given herself and council staff extra time to read submissions. She has not given the community extra time to write them on a budget that now reflects the actual situation.

The draft budget on exhibition was built around a deadline that moved on 14 May. The services it proposed cutting are no longer being cut. Council is still asking you to submit on it before 24 May.

The submission period should be extended. Full stop.

This is all your submission needs to say. Copy it. Send it.

Given the Minister for Local Government proposed a variation to the Performance Improvement Order on 14 May 2026 extending the budget deadline by twelve months, I ask Council to pause the exhibition period, revise the draft budget to reflect the new timeline, and give the community adequate time to respond.

Add your name and address. Send it to yoursay.kiama.nsw.gov.au and council@kiama.nsw.gov.au and councillors@kiama.nsw.gov.au

before 24 May.

Want to say more? Step by step submission guide here

Media releases referenced: Minister for Local Government Ron Hoenig, 14 May 2026, 4:26 PM. Kiama Municipal Council, “Kiama Council to hold Extraordinary Meeting for Budget,” 14 May 2026. Kiama Municipal Council, “Kiama Council welcomes Performance Improvement Order extension,” 14 May 2026.

A note from me. I am a community member, not a council spokesperson and not a journalist on a deadline. I am doing my very best to make sense of this bombardment of information and what it means for our town and our families. If I have got something wrong, tell me and I will fix it. If I have got something right, send your submission before 24 May.