Latrobe City Council has unanimously endorsed the Latrobe City Council Transition Reserve Policy, strengthening Council’s long-term commitment to supporting local economic diversification, new industry attraction and sustainable job creation.
Established in the 2024/25 Council Budget, the Transition Reserve was created to ensure dedicated funding to support the community through the economic impacts of the closure of the region’s coal-fired power stations and State Government changes to the native timber industry.
The newly endorsed Policy provides a clear framework for how Reserve funds will be prioritised and invested, with a focus on enabling infrastructure that drives long-term economic growth and supports emerging and expanding industries across the municipality.
Latrobe City Council Mayor, Councillor Dale Harriman said Council is taking proactive, responsible and future-focused steps to ensure our community is supported through the most significant economic transition in a generation.
“The Transition Reserve will enable us to back infrastructure and partnerships that deliver real diversification and long-term jobs for Latrobe City,” said the Mayor.
“By consolidating existing reserves and allocating future surpluses, we are building the financial strength needed to secure new industries, attract investment and position Latrobe City as a region of opportunity.
“This Policy provides a clear and transparent framework for how funds will be deployed to support enabling infrastructure, business growth and the evolution of our economic base. It ensures disciplined governance and high public value from every dollar invested.”
Under the Policy, 50 percent of any future annual budget surplus will be allocated to the Transition Reserve. In addition, Council agreed to consolidate the Yallourn Transition Reserve - originally established to manage rate revenue reductions post the closure of Yallourn - into the Transition Reserve to strengthen its value and impact.
Council also reaffirmed that profits realised from land sales at the Gippsland Logistics and Manufacturing Precinct (GLaMP), above the cost of enabling infrastructure, will be directed into the Reserve to further support investment attraction.
These additional allocations align with the Council Plan 2025 -2029, contributing directly to the delivery of Strategic Direction One – Our Economy – Invest, Jobs, Growth.