Stage one of the review was completed with the priority reforms being enacted in the Local Government Legislation Amendment Act 2019 (WA) which was passed on 5 July 2019. For further information on these reforms, please see 'Legal Update: Local Government Legislation Amendment Act 2019 (WA)'.
There have also been recent amendments in the Local Government Amendment (COVID-19 Response) Act 2020 which was passed on 20 April 2020. We will be publishing an article on those amendments shortly, so keep a look out for it.
In November 2019, the State Government announced the appointment of an expert panel, which will engage with the sector, community and stakeholders to make recommendations for a new LG Act.
The Panel is chaired by Mr David Michael, Ba¬lcatta MLA and its members include Professor John Phillimore, Executive Director of the John Curtin Institute of Public Policy, Mr Henry Zelones, former long-serving mayor of the City of Armadale, and Mr Duncan Ord OAM, Director General of the Department of Local Government, Sport and Cultural Industries (Department).
The Department is now working on stage two of the review, with a focus on making the new LG Act agile, smart and inclusive.
We identify below the key reforms proposed during the consultations held by the Department throughout Western Australia's regions. They are only proposals currently, and may not proceed in this form or at all.
Some of the reforms may have been introduced as a temporary measure to respond to COVID-19, for example increasing the tender threshold. It will remain to be seen if they are retained in the long term.
Administrative efficiencies
In order to achieve greater administrative efficiencies the following reforms are proposed:
- Combine the Local Government Grants Commission, which is responsible for making recommendations to the Minister on the amount of grants paid to local governments and Local Government Advisory Board, which is responsible for making recommendations to the Minister on proposed changes to local government boundaries, wards and councillor numbers;
- Repeal the Local Government (Miscellaneous Provisions) Act 1960 (WA), as large parts of this Act have already been incorporated into the LG Act; and
- Introduce amendments to ensure consistency between terms used in all Western Australian local government related legislation.
Beneficial enterprise
It is proposed that local governments should have the ability to form beneficial (incorporated) enterprises to provide services that carry significant community benefit, such as childcare facilities, subject to local governments:
- Satisfying an eligibility criteria to form beneficial enterprises; and
- Developing business plans to address community expectations and funding.
Community engagement
To provide greater transparency in local governments' decision-making processes, and consistencies in their community engagement processes, it is proposed to introduce a requirement for a community engagement charter. The charter would set out engagement requirements, principles to deliver performance outcomes and methods to measure performance.
There is also a proposal for requiring local governments to adopt social media policies for the use of social media by council members and employees, and in facilitating community engagement.
Complaints management
It is proposed to introduce reforms requiring local governments to have:
A complaints management policy dealing with how complaints are managed, who will be involved in the process and what their roles will be;
- A customer service charter; and
- A process for the independent review of decisions, particularly for unresolved complaints.
Council conduct and governance (interventions)
It is proposed to introduce reforms:
- To make the Director General of the Department the first port of contact for all complaints for alleged breaches of the LG Act, to determine how the complaint is to be dealt with;
- To extend the offence for improper use of information acquired in the performance of their duties to former council members, committee members and employees; and
- To make it an offence if local governments fail to invite tenders prior to entering into contracts for the supply of goods and services.
Council meetings
It is proposed to:
- Facilitate the use of new technologies and social media to foster community interaction in council question time and to allow remote attendance at meetings;
- Clarify and simplify the different interests and declaration provisions for council members;
- Remove the requirement for general electors meetings to be held once every financial year; and
- Raise the threshold for special electors meetings from 100 electors, or 5% of the total number of electors, to 500 electors.
Elections
Voting changes are also proposed, including:
- Changing the voting method from first-past-the-post to a preferential voting system;
- Allowing electronic and online voting, as well as postal voting;
- Changing the election cycle from a two-year cycle to a four-year cycle;
- Reviewing the voting eligibility criteria; and
- Introducing a cap on the amount of money candidates can spend on their campaigns.
Financial management
It is proposed to:
- Amend the investment rules to provide for a tiered approach to investments, (to balance risk and regulatory oversight) and to modernise borrowing rules, for example by allowing local governments to use commercial assets to secure loans at competitive rates; and
- Increase the tender threshold from $150,000 to $250,000.
Integrated planning and reporting (IPR)
While local governments have flexibility in reporting progress and outcomes to the community, there is a need for performance measures to be implemented and published.
In addition the IPR reforms will require local governments to produce strategic community plans and corporate business plans, that are integrated with its local health, disability access and town planning plans.
Local laws
To assist in the development of consistent local laws, it is proposed that local governments will be required to obtain certification from a legal practitioner that the local law is compliant with the legislation. Where the laws apply across a region, the costs for the legal advice would be shared amongst the relevant local governments.
It is also proposed that the Parliamentary Joint Standing Committee on Delegated Legislation be granted more discretion to review local laws prior to gazettal.
Rates, fees and charges
The changes to rates, fees and charges proposed include:
- Requiring local governments to publish a rates and revenue strategy;
- A review to be conducted of the exemption categories under the LG Act;
- For fees and charges be set at cost recovery; and
- Removing the requirement for Ministerial approval of large disparities in rates (with a maximum quantum of differential being set).