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FACT SHEET
Local Government Amendment (Targeted Review) Bill 2017
The Local Government Amendment (Targeted Review) Bill 2017 makes amendments to the
Local Government Act 1993 (the Act) following a targeted review of that Act.
The majority of the amendments will commence on the date that the Bill receives Royal Assent.
In summary those changes include:
1. Minor Boundary Adjustment
The Bill will amend section 16 of the Act to streamline the process for boundary adjustments
that are a minor in nature. A Local Government Board review will no longer be required for
minor boundary adjustments, where there is agreement from the councils involved and
consent from any affected owners of land. This will reduce red tape and costs associated
with this process.
2. Mayors
The Bill will amend section 27 of the Act to clarify the role of the mayor to include carrying
out civic and ceremonial functions, promoting good governance and chairing meetings in a
manner that supports decision-making processes. These strengthens and emphasizes the
role that Mayors play.
The role of a mayor to oversee the councillors in the performance of their functions and in
the exercise of their powers has been removed as there is no executive power for mayors
to properly perform this function (and nor was there clear support for providing mayors
with such executive power). Further, good governance is now being included as a function
of the mayor which should encapsulate aspects of performance.
3. Ministerial Orders
The Bill provides the Minister with the ability to issue Ministerial Orders in relation to such
matters as the role of mayors, functions of elected members, functions of general managers,
the appointment and performance of general managers and the role of general manager’s
liaising with the mayor.
It is intended that the sector raise with the Minister any areas where there may be a systemic
lack of clarity on any particular matter for addressing through a Ministerial Order. Ministerial
Orders will prescribe high-level principles and are more flexible than making amendments
to the Act. They can be introduced, amended and removed in a more timely manner, while
allowing for consultation with the sector, and will be subject to review and disallowance by
Parliament, similar to subordinate legislation.
4. Audit Panel Members
Several consequential amendments will be made to the Act under the Bill to ensure that
members of an audit panel are bound by both confidentiality and interest requirements
under the Act to reflect that audit panel members consider and review sensitive or
confidential information.
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5. Petitions
The Bill amends section 57 to ensure that the Act is more contemporary to accommodate
online or electronic petitions by prescribing the requirements for petitions that are created
in hard copy or electronically online.
6. General Managers
The Bill clarifies appointments of acting general managers. The amendments aim to cover
already existing methods or arrangements for acting appointments by councils and provides
them with the ability of determining whichever practise may best suit their policies. For
example, a council could choose to have a standing acting arrangement in all absences of
the general manager, or choose to appoint a new acting arrangement each time for every
absence.
Section 65 will be amended under the Bill to clarify that a general manager must ensure that
they must certify and keep records of any qualified advice that has been received verbally.
This ensures that such advice is accurately recorded and that all elected members receive
the same advice to help promote effective decision-making.
7. Financial and Administration
The Bill provides several consequential amendments in order to accommodate the new
model financial statements, including amending annual reporting requirements such as
“senior positions” to “key management personnel” in line with the Australian Accounting
Standards Board AASB 124.
Under section 82A, a council will also be able to authorise a general manager to continue
to meet current and accruing requirements where it may not have adopted its estimates
before the end of the financial year. A general manager will be able to continue to meet
current and accruing requirements for the months of July and August in that financial year.
8. Scope of Local Government Board Review
The scope of a Local Government Board review will be clarified under the Bill. It encapsulates
that a review looks at all aspects of the operation of a council including the performance and
exercise of the council’s functions and powers, the administrative operation, governance and
decision making.
9. Performance Improvement Directions
The Bill introduces newly created Performance Improvement Directions that are intended
to be a ‘middle ground’ option between an investigation by the Director of Local
Government and a Board of Inquiry. A Performance Improvement Direction will be able to
be applied to a council, all councillors or individual councillors.
It is anticipated that Performance Improvement Directions will be used as an efficient and
effective tool to provide early intervention and rapidly improve performance before it
escalates and impacts more seriously the operations or governance of a council. In this regard
it is intended that Performance Improvement Directions may lessen the need for a Board of
Inquiry review.
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Performance Improvement Directions will only be made on the recommendation of the
Director of Local Government where the Director believes that there has been a failure to
comply with statutory requirements under the Act or any other Act. The Director must give
reasons for his or her recommendation.
The Minister is then to determine whether he or she wishes to issue a Performance
Improvement Direction, and must consult upon the draft Performance Improvement
Direction with the council or councillor affected prior to doing so.
The Performance Improvement Direction will stipulate what actions are required, who must
take those actions, reporting on those actions as well as what the consequences are for
failing to comply with the direction. The consequences of failing to comply include
suspension for a period of time or initiating a Board of Inquiry or Local Government Board
Review.
The proposal for Performance Improvement Directions received general support from local
government.
10. Boards of Inquiry
The Bill amends processes and outcomes of Boards of Inquiry (Boards) in order to assist
future Boards of Inquiry to operate efficiently and effectively, reduce the social and economic
impacts upon the community or ratepayers of a municipality.
There will be more flexibility to suspend individual, several or all councillors during any stage
of the Board of Inquiry. Suspended councillors will remain suspended for the duration of the
Board of Inquiry. This is to ensure that suspension is available such that a Board of Inquiry
can continue its work efficiently and effectively. The Bill makes consequential amendments
to section 3 (Interpretation) in order to ensure voting can still occur where a council may
have several, but not all, councillors suspended. Consequential amendments will also been
made to the arrangements around the appointment of a commissioner on dismissal or
suspension of all councillors.
The Bill clarifies and tightens Board of Inquiry processes in order to allow a Board to operate
more efficiently. A Board will now be able to request information or access to information
within a certain timeframe and with associated penalty for non-provision of requested
information. This aims to encourage persons to provide information to Boards quickly to
assist the Board with its progress and reduce delays and costs.
The Bill also clarifies that Boards of Inquiry will not be required under the Bill to hold a public
hearing or permit the cross-examination of a witness by a legal practitioner or agent.
It will now be an offence for a person, including a councillor or suspended councillor, from
disclosing information that has been provided to them by the Board in the course of its
inquiry on the condition that that information be kept private and confidential. This
amendment is to protect and ensure that all persons affected are treated equitably and that
the progress of a Board of Inquiry is not impacted by the release of confidential information,
particularly before the final report has been released and made public.
There will be more flexibility to dismiss an individual, several or all councillors following a
Board of Inquiry process.
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Consequential amendments will be made to ensure that where some, but not all, councillors
are dismissed or suspended, there is adequate provision to allow for an absolute majority to
be formed. There will also been changes to section 341 immunity provisions to ensure that
it is consistent for both Local Government Boards and Boards of Inquiry.
11. Director of Local Government
The Bill clarifies the powers of the Director of Local Government with respect to his or her
ability to investigate matters or handle complaints.
The provisions will now clarify the ability of the Director to determine the procedure for
handling or investigating complaints. The Director can accept or reject a complaint, as well
as investigate or dismiss such a complaint.
There will be stand alone provisions with respect to the Director’s ability to investigate
complaints or other matters, that is, own motion investigations instigated by the Director.
The provisions will clarify that the Director may determine the procedure for such
investigations as well as the ability to refer any information gained from an investigation to
approved third party authorities such as the Integrity Commission.
These amendments will ensure that complaints and investigations are handled with greater
efficiency.
12. Electoral Matters
Consequential amendments extend local government election dates by one week. These
changes are considered necessary to accommodate for business changes to Australia Post’s
delivery services that would adversely impact postal voting. This ensures that adequate time
is given for voters to return their postal votes in the mail.
The Bill also provides an amendment to address a technical issue with respect to automatic
vacation of office in certain situations where a councillor moves from one municipality to
another and there may be transitional issues with respect to enrolling on the respective
House of Assembly and general manager’s electoral roll. In summary, it will provide a grace
period of 30 days to councillors, under such transitional circumstances, to ensure they are
properly enrolled such that they are not automatically vacated.
13. Part 3 of the Bill
These sections under the Bill are intended to commence on a later date to be proclaimed
in order to allow those affected stakeholders the time and opportunity to prepare for the
upcoming amendments.
a. Gifts and Donations Register
The Bill requires general managers to maintain a gifts and donations register for
elected members. This amendment may not apply to the upcoming 2018 local
government elections.
The details will be prescribed in amending legislation to the Local Government
(General) Regulations 2015 and there will be opportunity during that process for
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consultation with the local government sector, other key bodies and the
community.
b. Model Financial Statements
Under the new section 83A, councils will be required to report using model
financial statements that have been issued by the Director of Local Government,
in conjunction with the Tasmanian Audit Office. This amendment will commence
on a day to be proclaimed, being 1 July 2019, to provide councils with time to
prepare for the first model financial statement reporting period.
c. Electoral Advertising (Internet)
The Bill contains several consequential amendments to include electoral
advertising “on the internet” at a date to be proclaimed. These amendment may
not apply to the upcoming 2018 local government elections. These amendments
aim to ensure that the Act is contemporary and reflects that more candidates are
using internet advertising to promote their campaigns.
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