The newly appointed administrator of the state's Crown Land cemeteries believes Sandgate Cemetery will not be impacted by an efficiency drive across the sector.
The state government will merge the five existing Crown cemetery operators into a single entity known as OneCrown, after a statutory review found a danger of financial collapse.
The proposed consolidation of the cemetery operators, who were found to have debts of more than $300 million, is designed to secure the sector's financial future.
"Consolidation will ensure the financial sustainability of the sector, allowing us to strategically address the need for more cemetery space while delivering culturally relevant and affordable interment services," Water, Property and Housing Minister Melinda Pavey said.
Sandgate Cemetery, the state's third largest cemetery, has been a member of the Northern Metropolitan Cemeteries Land Manager Board since 2014.
Other cemeteries managed by the board include Macquarie Park Cemetery, Frenchs Forest Cemetery, Gore Hill Cemetery and Field of Mars, all of which are based in Sydney.
The structure ensured Sandgate's day-to-day resourcing and capital expenses were effectively met.
Friends of Sandgate Cemetery has previously expressed concern about the implications of the review for the cemetery's future.
State government review of cemeteries may have major implications for Sandgate Cemetery
Former senior Hunter police officer Lee Shearer has been appointed as administrator of the state's Crown cemeteries as the first step towards the establishment of OneCrown.
Ms Shearer said back of house operations would be targeted for efficiencies and cost savings rather than front-line cemetery services.
Sandgate's distance from Sydney also meant that it should function as a standalone operation.
"Sandgate is an entity that in my initial view stands on its own," she said.
"It is so far away from where the other cemeteries are that the ability to achieve efficiencies is not possible."
The Friends of Sandgate Cemetery group has been lobbying for a role for the local community in the Cemetery's future governance.
"The best model will embrace the views and interests of the community and not be imposed from above," Friends of Sandgate spokesman Peter Owens said.
Ms Shearer said she was keen to meet with the group in the near future.
She will also oversee the recruitment of a single, multi-faith, multi-disciplinary skills-based board that will manage OneCrown's operations, establishing an advisory group to ensure the interests of all faiths are represented at all times, looking after the day-to-day management of cemeteries, acquiring and developing new cemetery land.
In the immediate term, there will be no change to the operation of Crown cemeteries, with existing staff continuing in their roles.