The New South Wales Liberal Party is confronting significant financial challenges ahead of the 2027 state election, with some local branches reportedly holding as little as $200 in campaign funds. This precarious situation stems largely from the party’s obligation to pay more than $2 million to members affected by a mishandled nomination process for the 2024 council elections.

The financial strain became apparent after a class action was initiated by approximately 140 prospective candidates who missed the chance to run due to an administrative error that caused the NSW Liberals to miss the deadline for nomination submissions. A settlement proposal filed with the Supreme Court last month outlines a payment of about $1.75 million to those candidates, along with a waiver of three years’ membership fees for impacted members. The party has also committed to reimbursing $2,250 in campaign expenses for each participant if they contest future Liberal preselection. These measures could cause the total compensation bill to exceed $2 million.

Party insiders, speaking anonymously, expressed uncertainty about how the division would manage the settlement costs. Several local branches, including Swansea, reportedly have campaign accounts with less than a few hundred dollars, while others held by sitting MPs also have under $10,000 in available funds. For reference, the Charlestown branch has just under $10,000 for campaigning. The NSW Electoral Commission data shows the state Liberal division raised about $57,000 this year through donations and fundraisers, markedly less than the roughly $176,000 raised by NSW Labor for the same period.

Last year, the NSW Liberals generated approximately $2.5 million from fundraising, donations, and membership fees, less than half of Labor’s $5.3 million haul. A spokesperson for the NSW Liberals attributed Labor’s financial advantage to union funding and noted that the Liberal Party relies heavily on contributions from individuals and small businesses, which have faced economic difficulties under the current Labor government.

With the election less than five months away, the party faces the added challenge of repairing internal divisions and rebuilding financial capacity to support campaigns, especially in marginal or traditionally difficult seats. Swansea, which has not been held by the Liberals since 2014, remains a contested seat where the party continues to field candidates despite limited resources. Some party members have criticized NSW Opposition Leader Kellie Sloane for insufficient engagement beyond the Sydney metropolitan area, suggesting this has contributed to waning volunteerism and fundraising, particularly in northern regions.

Sloane, who recently visited the Central Coast near Swansea, declined to comment on the financial concerns or internal party criticisms. The outcome of the state election will be crucial, with several key seats—including ones in the Hunter region—likely to influence the balance of power in New South Wales.