Local Government Act Review

In 2017 the McGowan Government announced a review of the Local Government Act 1995. This is the first significant reform of local government conducted in more than two decades. The objective is for Western Australia to have a new, modern Act that empowers local governments to better deliver for the community. Our vision is for local governments to be agile, smart and inclusive.

About the Local Government Act Review

Currently, the Local Government Act 1995 establishes the system of local government in Western Australia. It covers a wide range of features of local government and describes:

• the functions of local government
• the election of councillors
• the roles of the council and local government administration
• the framework for the administration and financial management of local government.  

In 2017, the McGowan Government announced a review of the Local Government Act. The review is being undertaken by the department.

The intention of the review is to identify areas of reform that either:

• should be introduced as a priority into the current Local Government Act; or  
• should be incorporated into a new Local Government Act.

How the review is being conducted

Given the breadth of matters covered by the Local Government Act, a staged approach to the review has been adopted:

• Stage one: Priority reforms.
• Stage two: Additional reforms.

The following process has been undertaken in both stage one and stage two of the review:

1. Topic identification: identification of topics within the Act that should be reviewed.
2. Community consultation: seeking feedback from the community and key stakeholders on the key topics under review.
3. Analysis of submissions: compiling and analysing the feedback from community and key stakeholders.
4. Consideration and decision by Government: a decision by Government as to whether the Act needs to be amended and how it should be amended.
5. Changing the Act: amending the Act to reflect decisions of Government. Changes to the Act are being progressed either: 

• immediately as a priority (please refer to the Reforms Introduced page for more information); or
• when an entirely new Local Government Act is drafted (information on the new Act is available below).

Local Government Act Review Reference Group

In 2017, the department formed a reference group of key industry stakeholders to provide feedback and advice on:

• topics to be reviewed
• materials prepared for consultation
• the analysis of the community’s feedback.

The Reference Group has met throughout the process to provide invaluable insights and guidance.

A new Local Government Act

It is intended that a new Local Government Act will be drafted to incorporate new features identified in the review.

Work on a new Local Government Act will be undertaken by the department.

The process for developing a new Local Government Act is as follows:

1. Policy development: identification of what will be included in the new Act, including incorporating reforms identified in the review.
2. Approval of Government to draft a new Act.
3. Consultation with the community on the draft of the new Act (the Green Bill).
4. Analysis of feedback.
5. Decision by Government to adopt the new Act.
6. Introduction of the new Act.

Local Government Review Panel

A panel of experts has been formed to progress the development of a new Local Government Act for Western Australia. 

The Local Government Review Panel will consider and recommend high-level direction and guiding principles for the new Act.

The panel will continue to engage with the sector, community and stakeholders, and make recommendations on the requirements of a new Local Government Act to meet the future needs of local government. 

The panel will look at best practice models in Australia and overseas as well as feedback from the recent consultation on WA's Local Government Act 1995.

Timeline of the Local Government Act Review  

• July 2017 State Government makes an election commitment to review the LG Act 1995.
• November 2017 Consultation on priority reforms begins.
• August 2018 Policy positions for priority reforms are announced.
• September 2018 Consultation on second stage of reforms begins.
• March 2019 Priority reforms are introduced to Parliament. Consultation on second stage reforms close.
• March 2019 Submissions to the second stage closed on 31 March 2019 and are now being reviewed.
• June 2019 Local Government Legislation Amendment Act 2019 passed.

About the reforms

• Candidate induction (in place)
• Universal training for council members (in place)
• Council member code of conduct (out for consultation)
• Improvements to CEO recruitment and performance review (out for consultation)
• New gift framework (in place)
• Changes to the Standards Panel (in place)
• Greater transparency easier access to information (partly in place)

Read the policy positions on the priority reforms

The next stage will result in a new Local Government Act and focuses on delivering for the community based on the themes Agile, Smart and Inclusive. It considers nine key topic areas as outlined in the table below and local governments and community members are currently invited to have a say on some or all of the reform areas.

Agile

Agile includes topics that focus specifically on how local governments can best use their resources to adapt to changing conditions. It is important that they can strike a balance between community expectations, the practical limitations of revenue and expenditure and external pressures.

Smart

Smart includes topics that focus specifically on enabling local governments to better meet the needs and expectations of their communities through being transparent and accountable.

Inclusive

Inclusive focuses specifically on local governments representing and involving their communities in decision-making. As the tier of government closest to the community, there is an expectation that local governments represent the whole community, recognise diversity within their district and are responsive to community needs.

Consultation on proposed Code of Conduct and CEO Standards

On 27 June 2019, the Local Government Legislation Amendment Act 2019 was passed in Parliament. The Act includes a requirement for the introduction of:

• a mandatory code of conduct for council members, committee members and candidates (Code of Conduct); and
• mandatory minimum standards covering the recruitment, selection, performance review and early termination of local government Chief Executive Officers (CEO Standards).

The department is seeking feedback on the draft Code of Conduct and draft CEO Standards and accompanying guidelines. 

Feedback can be provided via the completion of the online surveys or by sending written submissions to the department at actreview@dlgsc.wa.gov.au. Submissions close on 6 December 2019.

Priority reforms

On 27 June 2019, the Local Government Legislation Amendment Act 2019 was passed by Parliament.

Reform areas

Between September 2018 and March 2019, the Department of Local Government, Sport and Cultural Industries held consultation sessions in every region, issued surveys on potential reforms, and invited written submissions. 

Consultation closed on 31 March 2019. More than 3,000 survey responses and written submissions were received from community members, ratepayer associations, industry groups, local governments, councillors, and peak bodies.

The department also consulted with more than 100 organisations and community groups including multicultural groups, young people, Aboriginal groups and seniors.

Summary papers which outline what we heard from the consultation are now available. The contribution of community members, local governments and others who have supported the process to date will provide valuable input to the Local Government Review Panel and help transform local government in Western Australia.

The following reports provide an overview of the findings from the consultation:

A report on the findings for each topic is available by clicking on the topics below. 

Survey and postcard responses

Responses

The public submission period closed on 31 March 2019 with more than 3000 responses received. 

The department acknowledges and thanks all who have provided submissions to the review.

All submissions received are being considered.

Consultation to date

The department has consulted with more than 100 organisations and community groups across the State including local government staff, peak bodies, multicultural groups, young people, Aboriginal groups and seniors. Below is a list of all the consultation locations and groups for the current phase of the reforms.

​More information

Email actreview@dlgsc.wa.gov.au ​