In what's being described as a win for our councils, the NSW Government is introducing legislation to transfer ownership of Rural Fire Service vehicles from local government to the state.

Having the "red fleet" off council balance sheets will be a relief to many councils struggling to overcome financial constraints, Local Government NSW President Darcy Byrne said.

The ownership transfer will consolidate operational responsibility for the red fleet under the State Government for the first time since the RFS was established almost 30 years ago.

Under the current legislative arrangements, ownership of RFS firefighting equipment rests with local councils.

As a result, councils have been required to record, account for and depreciate assets over which they have no operational control.

In Weddin Shire Council's June Ordinary Council Meeting general manager Matthew Sykes says this transfer of ownership will impact Weddin Shire Council's financial performance.

"We should see a reduction in operations and maintenance because we service that fleet through our workshop," Mr Sykes said.

Under new legislation, ownership and management would be transferred from councils from 1 July 2027, with councils to be engaged over the coming 12 months to support the transition and identify opportunities to assist with future maintenance.

Country Mayors Association chair, Mayor Rick Firman OAM, said the move followed years of advocacy and a parliamentary inquiry.

“From 1 July 2027, ownership of the Red Fleet will finally align with operational reality: the RFS already has full control of these assets," Cr Firman said.

"It has never made sense for councils to carry Red Fleet assets on their books. The CMA has long advocated that both ownership and control should sit with the RFS.”

In the 2026-2027 NSW Budget, the NSW Government has announced a $470 million investment to modernise management of the NSW Rural Fire Service (RFS) fleet.

This 10-year commitment is about enhancing bush fire and emergency response to better protect communities in our regions by ensuring RFS trucks are safe and reliable.

More than $29 million will be invested over two years to establish up to eight RFS regional maintenance hubs and providers, along with $106 million over four years for critical maintenance and safety upgrades.

RFS Commissioner Trent Curtin said it was landmark and momentous reform for the RFS - and one of the most significant investments in our operational capability in recent years.

“Our firefighters rely on these vehicles every day in some of the most demanding and unpredictable conditions, and it is essential we equip them with a fleet that is safe, reliable and fit for purpose," Mr Curtin said.

“This reform establishes, for the first time, a consistent and modern approach to fleet management across NSW.

"It strengthens safety, improves reliability and ensures our members are always ready to respond when communities need them most.”

Weddin Shire Council general manager said a report will be included in the July Ordinary Council Meeting from the director of infrastructure services with information from the finance area about the estimated impacts which will includes things such as reduced depreciation.