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February 10, 2026 — 5:00am
Laura Jackel took pride in making her 104-year-old home a sanctuary for her children, a place full of memories. Now her house is a danger zone – and the ground beneath it is probably worthless.
Jackel was one of 16 families from New Lambton who were forced to leave their homes in May last year when the ground beneath began to shift in a landslip. Many, including Jackel, have had their houses repeatedly looted by thieves even while they are prevented from entering their own homes, which will almost certainly be demolished.
“Our homes are all in danger zones,” she said. “We’ve had our home looted three times. It’s really hard to describe the kind of stress that this has put on us, and the cloud over our family.”
Nine months later, Jackel and her neighbours say they have been caught in the middle of a dispute between the City of Newcastle and the NSW government. The council says it needs more funding support from the state government to help the victims, but the minister responsible says the council needs to take the lead.
“You have to hope that we won’t be in this position in five years’ time,” Jackel said. “Sometimes that thought keeps me awake at night.”
Unlike a typical flood or bushfire, when a home is condemned but victims can rebuild, landslips can make the entire block of land unsuitable for building work. Until a geotechnical report from the council is finalised, residents will not know for sure if they will ever return, but most have accepted it’s unlikely.
Adding to the stress of home owners is a looming deadline on their insurance support – come May, many will be left making mortgage repayments on destroyed homes on unusable land.
While other major natural disasters, including the Lismore floods, came under the remit of the Reconstruction Authority, the landslip was considered by the state government to be a local council issue. City of Newcastle in September asked Minister for Recovery Janelle Saffin for an act of grace payment of $50,000 to refund the victims for rates paid for the year.
Two days before Christmas, the request was denied.
“Providing an ‘act of grace’ payment to a small group of properties without extending similar assistance to all impacted households … would create inequity and is not feasible within current policy or funding frameworks,” Saffin wrote in a letter to the council.
A previous request by the council for the minister to direct the Reconstruction Authority to take charge of the disaster was also denied.
A spokesperson for Saffin said the government was waiting to see technical reports from the council to determine next steps, but the council is not satisfied with that response.
“We need the NSW government to step up now and provide meaningful financial support for residents while this catastrophe is sorted out,” Lord Mayor Ross Kerridge said.
Greens councillor Siobhan Isherwood also said it should be the state government’s responsibility, saying there is no “defensible” reason why support would be denied. Until a geotechnical report is produced, which is expected later in the month, neither the council nor the state government can agree who is in charge.
“The Reconstruction Authority is a billion-dollar authority with a clear role in helping the NSW community recover from disaster, so they should be leading the charge when it comes to stepping in to help the people impacted by this disaster in New Lambton,” Greens MP and spokesperson for Planning Sue Higginson said.
A spokesperson for the Reconstruction Authority said the agency is assisting and has helped with some emergency accommodation requests.
“Newcastle City Council is leading the recovery effort, given its responsibility for coordinating local operations,” the spokesperson said. “Due to the complexity of the landslip, a series of geological and engineering assessments are required to determine the site’s safety and future use. These assessments will guide council’s decisions moving forward.”
For home owners facing an uncertain future, the finger-pointing is making matters worse.
“It leaves us in limbo while agencies debate who is responsible,” home owner David Couri said.
“We’ve felt like the problem to be managed is us residents, rather than the problem being the houses that fell down the hill.”
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