The Illawarra is proximate to both Sydney and Canberra, and Wollongong, as the capital of the Illawarra region, is well positioned for the relocation of government bodies. The relocation of government administration bodies to regional areas over time can provide substantial cost savings for government and improve labour force participation and unemployment.

An example of a federal government decentralisation is the Australian Taxation Office which has over 400 employees working out of Wollongong. Lease costs in Wollongong are often 50% lower than Sydney and retention rates are higher compared to Sydney.

RDA Illawarra has made a submission to the Regional Development and Decentralisation Committee and continues to advocate for decentralisation in the region.

The inquiry was a joint submission between RDA Illawarra and the Illawarra Business Chamber. The submission demonstrated that adopting regional economic centres will not only support the growth of the Illawarra, but more importantly mitigate the growing pains of Sydney and maximise the economic outcomes for NSW and Australia.

The submission highlights that the relocation of government administration bodies to regional areas over time can rovide substantial cost savings for government and improve labour force participation and unemployment in regional areas.

RDA Illawarra notes in the submission that it is important for the Committee to appreciate the transformation taking place in the Illawarra as it transitions from a predominately manufacturing economy to a diverse economy built on knowledge services, advanced manufacturing, trade and logistics and an increasing defence sector capability.