2023 will be another year of significant change and transformation for local government.
In February, the Local Government Amendment Bill 2023 was introduced into Parliament. The proposed changes could bring electoral reform ahead of the October 2023 Ordinary Elections, but are also designed to encourage more transparency and accountability for local governments.
These proposed reforms come at a time when the sector is already grappling with changes arising from the 1 January 2023 move from the Federal to the State industrial relations system.
Elections and voting
With regard to electoral reform, the following changes are being proposed:
- introducing optional preferential voting, bringing local government elections more in line with State and Federal elections;
- abolishing the use of wards for smaller local governments; and
- reforms to the owners and occupiers roll to prevent the use of 'sham leases'.
Public election
This reform creates a new power for the regulations to require public election of the mayor or president. While draft regulations are yet to be released, this power may prevent council from electing the mayor or president where it is currently able to do so.
State-wide caretaker periods
A state-wide caretaker period is being proposed, preventing local governments from doing anything that is considered to be a 'significant act' during this period. A 'significant act' will include:
- entering into a major land transaction or land transaction that is preparatory for a major land transaction, given this is considered to be a significant financial action;
- making or amending a local law, given it requires public consultation and can create or remove offences;
- commencing a major trading undertaking; and
- entering into contracts in prescribed circumstances (for example, over a certain monetary value).
This is important for local governments to be mindful of as plans may be delayed.
Councils
Proposed reforms to council include:
- aligning the size of councils with the size of the population of each local government area;
- standardised council meeting procedures; and
- mandated live streaming and recording of council meetings.
Council communications agreement
Under this reform, local governments will be required to have a written communications agreement between the CEO and elected members. That agreement must regulate the dealings and communications between members and employees, including requests for information from the council or committee members. The Minister is required to provide a default communications agreement.
To comply with this requirement:
- the local government can prepare and adopt their own agreement; or
- if the local government does not have their own agreement, the default agreement provided by the Minister will apply.
Publication of CEO performance
New requirements to make public the CEO's performance criteria and annual performance review are imposed by this reform. Local governments must:
- conduct a review at least once per year of service;
- after each review, provide the CEO with a report in the prescribed form and allow the CEO to respond; and
- publish the CEO's performance criteria, report, and any response, subject to any exclusions by the Department of Local Government CEO.
Public online registers
The Bill proposes new requirements for local governments to publish information through online registers. These registers are intended to increase the transparency and accountability of local governments by making public the following information:
- leases the local government is party to;
- grants and sponsorships given by a local government;
- all contracts for goods and services entered into by the local government; and
- matters relating to the function of the local government under the Planning and Development Act 2005 (WA).
While not included in this round of amendments, the Minister for Local Government has confirmed that work is continuing on additional legislation to deliver further reforms - including the establishment of the new Local Government Inspector and the introduction of local government monitors for early intervention.
Transition to State IR system
MinterEllison continues to assist local government with their ongoing transition to the State industrial relations system, including:
- compliance reviews of contract templates;
- updating policies and procedures, including for parental leave and timekeeping;
- advising on changes in minimum entitlements;
- providing presentations and communications for management and staff on differences between the Federal and State systems; and
- advising on enterprise bargaining in the Federal and State systems, including responding to notices to initiate bargaining under the State system.
If you have any questions about the proposed reforms or you require assistance with State transition issues, please get in contact with our team.