Intro
The Local Government Amendment Act 2024 (the Amendment Act) amends the Local Government Act 1995 (the Act) to advance various reforms, including the establishment of a new Local Government Inspector (the Inspector) and monitors to enhance early intervention and assist local governments in resolving dysfunction.
In addition to the reforms for the Inspector, a range of other reforms are being introduced that focus on good governance and decision-making at council and committee meetings:
Commenced December 2024
The role of councils is to lead and represent their communities. Councils do so by engaging with their community, making decisions and setting the strategic direction of a local government. The administrative arm of the local government is responsible for implementing decisions and plans made by council.
The roles of the council, mayors or presidents, council members and the CEO have been further clarified in the second tranche of reforms. These changes ensure there is a clear distinction between the functions and responsibilities of a council and a CEO.
All council members are expected to:
As the leader of the local government council, mayors or presidents perform the following roles in addition to their council member role:
The CEO is responsible for the administration and operation of the local government, including:
The CEO liaises with the mayor or president on the local government’s affairs and performance of its functions and may speak on behalf of the local government, with the mayor or president’s agreement.
Role clarity is vital especially when different roles need to work together to achieve shared objectives. When people understand their roles, better decisions can be made and implemented more effectively, resulting in better outcomes and improved use of ratepayer funds.
Finally, as of 7 December 2024, local governments are required to advise the Department of Local Government, Sport and Cultural Industries (DLGSC) when vacancies on the council arise.
To be commenced
By default, under the reforms, council and committee meetings must be open to the public. In certain circumstances, part of a meeting may be closed to deal with specific information where there is a clear public interest for that information to remain confidential.
The reforms provide a much stronger definition of the limited reasons to close a meeting.
Matters where a meeting must be closed include:
Examples of the types of information to be considered that may provide a basis for closing part of a meeting include:
The reforms clarify that:
The Amendment Act also contains a new section to define irrelevant reasons for closing part of a meeting. These include:
The new Inspector will be able to review a decision to close part of a meeting to the public.
All local governments will be required to audio record parts of a meeting that are closed to the public. Additionally, as proposed in the reforms, the Inspector will be able to order that the local government release the audio recording to the public if the Inspector determines that the meeting was not closed in accordance with the Act or regulations.
Audit committees will be revised as audit, risk and improvement committees (ARICs) and must have an independent presiding member to ensure a level of neutrality and impartial oversight in chairing these meetings. An independent presiding member must be a person who is not a council member of any local government or an employee of the local government. If a deputy presiding member is appointed, they must also be independent.
The introduction of an independent presiding member provides an opportunity for increased community confidence in a local government’s financial and risk management. There may also be benefit to the local government through appointing an independent presiding member with risk and financial management expertise that may otherwise be unavailable.
This reform reflects modern governance practices in State Government authorities and agencies as well as private corporations.
Under the current provisions of the Act, an audit committee is required to be established comprising of 3 or more persons appointed by an absolute majority decision of the local government. The majority of the members must be council members. The CEO or a local government employee cannot be a member.
The Act provides for the following distinct committee member roles:
Under section 87 of the Amendment Act, a local government will be required to appoint an independent person as presiding member of the ARIC.
The reforms will require an ARIC to be structured as follows:
Smaller local governments may also now choose to share an ARIC to reduce the burden on their resources.
The Amendment Act includes changes to allow for greater transparency and clarity on how council committees operate.
The appointment process for appointing presiding members and deputy presiding members has also been simplified. Councils will now appoint these roles by absolute majority decision, instead of the committee electing those roles by secret ballot.
Local governments are still able to establish informal working groups outside of the Act, which are not committees, to engage with their community or develop ongoing networks. The requirements of the Act do not apply to such groups.
Contact DLGSC via email actreview@dlgsc.wa.gov.au