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The decision follows the show cause notice issued to the Shire in late August that outlined the WA Government's serious concerns regarding the Shire's financial management and governance. 

Under section 8.15B of the Local Government Act 1995, the Shire was required to provide the Minister with a written response outlining why the council should not be suspended. 

The decision not to suspend the council was made following careful consideration of the information provided in the Shire's response.

The response outlined the council is working with the Shire's administration on its financial management and strategic planning.

The council has made some initial effort to address the substantial financial challenges facing the Shire.

However, due to the significant risks which remain, the Minister has set clear expectations for the Shire to support the rebuilding of its financial position.

These include that all council members complete financial management training and that the Shire provides regular updates to the Department of Local Government, Industry Regulation and Safety (LGIRS) on the implementation of the Financial Recovery Plan and its Long-Term Financial Plan.

The Shire's financial position will be continually assessed over the next 12 months.