The Federal Opposition has pledged $20 million to the Australian Electoral Commission to hold a series of plebiscites in New South Wales over forced council mergers if it is elected.

Opposition Leader Bill Shorten said there was "serious community uproar" at the way council amalgamations had been undertaken.

Mr Shorten said plebiscites would give thousands of angry residents a chance to express their views against what he said was the "stifling of democracy".

"You've already had the councils of North Sydney, of Randwick, of Waverley Council, you've got regional council, Snowy River, Tumbarumba, for example, have all called for plebiscites," Mr Shorten said.

"Down in south coast of NSW they had a plebiscite and the Government changed its view."

Last month, the New South Wales Government backflipped on some of its proposed council mergers, announcing that only 19 amalgamations would go ahead.

The Government had originally wanted to force 35 amalgamations, but said it had delayed decisions on nine of them because the councils involved had launched legal action.

Several councils have escaped the axe altogether.

NSW Premier Mike Baird has accused Mr Shorten of putting short-term political interests ahead of the economic need for council reform.

"What is clear is that the Leader of the Opposition is happy to put his personal interests, his political interests against the economic interests of this state and this country," Mr Baird said.

The Premier said Mr Shorten was calling for consultation with the local community, something he said had been done.

"He obviously hasn't visited NSW much in the last few years because that's exactly what we've been doing.

"We've been consulting with local businesses, local governments, asking them to consult with local communities."

However, President of Local Government NSW Keith Rhoades said the proposal was welcomed by the peak body for councils.

"The Federal Opposition has recognised the proper process is to ask the people for their views. The State Government should have used the Boundaries Commission and their full process - that would have included a poll of the community in the affected areas," Cr Rhoades said.

"Plebiscites are not binding, but they will indicate the will of the people. There has been a very strong backlash against the mergers in many communities."

Cr Rhoades said the councils were democratically elected.

The Federal Opposition said the final cost for the proposed series of plebiscites would depend on which councils took up the offer.

However, the Federal Government has already dismissed the proposal, with Finance Minister Matthias Cormann saying it would be a waste of money.

"The State Government of NSW, elected by the people of NSW makes these sorts of decisions and that is the same situation after the plebiscite, if it were to happen, as what it is before the plebiscite," he said.

"It would make absolutely no difference whatsoever."