The Opposition Leader promised on Monday that a Labor government would set aside $20 million that councils could use to cover the cost of a community vote on amalgamations – like the one recently held by Kiama Municipal Council.  

“This will give the people of NSW the power to stand up to the Baird Liberal government, and their plan to unilaterally dispense with democracy and force councils to merge, and to sack elected councillors,” Mr Shorten said in a statement.

“Under Labor’s plan, even those councils that have been spared amalgamation would be able to request a plebiscite to affirm community support, sending a clear message to the Liberals to keep their hands off the council.”

The Baird government finalised the majority of its forced council mergers last month and has given in principle support to dismiss more councils, pending the outcome of legal action.

Shellharbour City Council currently has a case before the Land and Environment Court as part of its fight to stave off a looming merger with neighbouring Wollongong. 

“Not only are the Labor councillors in Shellharbour entering a court case with an open cheque book, now Labor federally are willing to hand over $20 million of taxpayer dollars towards a process that they have no part in,” Ms Blicavs, who is also a Wollongong City councillor, said.  

“This is a state government issue.

“It doesn’t make sense and I don’t think that the people of Wollongong, the people of Cunningham particularly, want their tax dollars spent in such a way.

“Ultimately, the result of the plebiscite could achieve very, very little because the process is well under way.” 

Ms Blicavs’ comments echoed NSW Premier Mike Baird, who said the mergers were complete and ultimately the state government would have the final say. 

Mr Baird said Mr Shorten's promise would make no difference to his local government reform program.

“The mergers are already done and we know that this is a stunt because ultimately the decision would rest with the state government,” he said.

Labor says its plan is similar to the Howard Government's in 2007, when the Queensland state government forced councils to amalgamate. 

But even if NSW councils were to hold plebiscites, their results would be non-binding.

Local government expert Professor Brian Dollery said, however, they would most likely prove an embarrassment to the Baird government.

"It would put Baird in an acutely embarrassing position if they held plebiscites and people voted against amalgamation," Professor Dollery, from the University of New England's Centre for Local Government, said.

"Amalgamations are so unpopular with the local communities. We know from history, any poll they have is always against them."

Kiama Council held a plebiscite asking residents if they wanted to merge with Shoalhaven, and 95.5 per cent of those who voted said "no". However, less than half of the population enrolled to vote participated.

Waverley Council also voted to hold a poll on mergers at the same time as the July 2 federal election, but has since reversed the decision.

Mr Baird accused Mr Shorten of trying to "pick up a few extra votes" on the back of resistance to council amalgamations.

"The Leader of the Opposition has shown he is willing to pull any political lever he can to ensure that he wins office," Mr Baird said while announcing three business taxes worth $1.8 billion over four years would be abolished from July.

"These aren't proposals, this is reform done and already delivering benefits to the community."

- with Melanie Kembrey, SMH.