Skip to content

  • Home
  • COVID-19 Guide
  • Podcast library
  • Client results
  • Expertise
  • News & Insights
  • People
  • Our DNA
  • Inclusion and Diversity
  • Join us
  • Contact Us
Home / NEWS & INSIGHTS / Insight / Key amendments to the Local Government Act 1993
Insight 17 September 2019

Key amendments to the Local Government Act 1993

A number of amendments to the Local Government Act 1993 (the Act) have been made following the Local Government Amendment Bill 2019 (the Bill) receiving assent on 25 June 2019.  While some of the changes to the Act have already commenced, others will take effect on a date that is yet to be proclaimed.

An overview of some of the notable amendments to the Act is provided below.

Changes to procurement procedures

The tender threshold for councils to go to tender has now been increased from $100,000 to $250,000 in a bid to cut the red tape associated with unnecessary expense and delays.

Previously, section 55(3)(n) of the Act provided that if a contract involved an estimated expenditure or receipt of an amount greater than $100,000, council was required to invite tenders before entering into contracts.

The alternative threshold of $150,000 specified in the regulations will continue to apply for those specific contracts which involve the provision of services where those services are, at the time of entering the contract, being provided by employees of the council.

Mutual recognition of section 68 approvals

New provisions are to be introduced to enable regulations to be made which provide a scheme for the mutual recognition of certain council approvals issued under section 68 of the Act.

Section 68 approvals are required for a range of activities identified under section 68 of the Act. This includes activities such as the carrying out waste management activities in public spaces, swinging or hoisting items over a public road, the carrying out of water supply work or engaging in trade or business on community land.

When the provisions are introduced and a scheme is established, it is expected that approval requirements for those businesses which operate across local government areas and require multiple approvals from different councils, will be simplified. The new provisions will allow a council that is willing to delegate certain regulatory functions to another council, to do so, provided the other council accepts that function.

12-month extension to rates freeze for amalgamated councils

Of relevance to those councils that merged in 2016, an amendment has been made to section 218CB of the Act regarding the transitional provision for the maintenance of pre-amalgamation rate paths. Under this provision, the Minister is authorised to make a determination which requires an amalgamated council, in levying rates for land, to maintain the same rate path that last applied to the land by the relevant former council. 

Previously, if a determination applied to the levying of rates by a new amalgamated council, this was to continue for 3 rating years immediately following the rating year from which the relevant proclamation provided for the levying of rates.

The amendment to section 218CB(2) of the Act extends the rates freeze period to 4 rating years,  providing those councils that are not ready to harmonise their rates from 1 July 2020 onwards, an additional 12 months to prepare for this.

This change also applies to existing determinations that were in force when the amendment to section 218CB(2) of the Act commenced on 25 June 2019.

Exemption from the regulatory requirements for fees

A new section 612 is to be inserted under Part 10 of Chapter 15 of the Act, which will provide an exemption for councils from the usual regulatory requirements for fees.

This new provision will enable regulations to be made by councils in relation to specified commercial activities only, exempting them from the standard requirements to advertise council fees or determine fees in accordance with a pricing methodology formally adopted and set out in council’s operational plan.

Previously the Court has held that a council has a general power to contract with persons in respect of work to be performed, but that a council’s “general power to contract” does not empower it to charge fees for work performed outside the mechanisms established by Chapter 15 Part 10 of Act (Adrenaline Pty Ltd v Bathurst Regional Council [2015] NSWCA 123 at [48]).

These amendments (in combination with the increased tender threshold) are intended to strengthen the purchasing power of councils when negotiating contract fees and competing against other service providers. This is because councils will no longer be commercially disadvantaged by requirements that their fees be advertised and made known to competitors or the requirement that the pricing methodology in their operational plan be adopted.  

Further information

This article does not provide an exhaustive overview of all the amendments to the Act and is intended for information purposes only, and is not to be regarded as legal advice.

Should you wish to discuss the amendments to the Act in further detail or if you have any questions, please do not hesitate to contact the Planning and Environment team at McCullough Robertson.

This publication covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. It is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.

About the authors

  • Patrick Holland

    Partner
  • Kate Swain

    Partner

Elizabeth Ryan
Lawyer
Rebecca Stokes
Lawyer

In other news

Branding on trend: Certification of Australian Fashion

10 May 2022Insight

Verification of identity: a refresher

10 May 2022Insight

Categorising land for rating purposes used for both permanent residential and temporary tourist accommodation

4 May 2022Insight

Court of Appeal decision brings welcome relief to local councils

4 May 2022Insight

VIEW ALL NEWS & INSIGHTS

BRISBANE

Level 11, 66 Eagle Street
Brisbane QLD 4000
GPO Box 1855
Brisbane QLD 4001
Tel +61 7 3233 8888
Fax +61 7 3229 9949

 

GET IN TOUCH

    Contact form

    We handle your personal information in accordance with our privacy policy.

    Please do not send us any confidential information. By submitting this form, you agree that our review of the information you submit will not create a lawyer-client relationship between you and our firm (or any lawyer in our firm) and it will not prevent us from representing a party in any matter where the information you submit is relevant, even if that information could be used against you.

    sydney

    Level 32, MLC Centre
    19 Martin Place
    Sydney NSW 2000
    GPO Box 462
    Sydney NSW 2001

    Tel +61 2 8241 5600
    Fax +61 2 8241 5699

     

    GET IN TOUCH

      Contact form


      We handle your personal information in accordance with our privacy policy.

      Please do not send us any confidential information. By submitting this form, you agree that our review of the information you submit will not create a lawyer-client relationship between you and our firm (or any lawyer in our firm) and it will not prevent us from representing a party in any matter where the information you submit is relevant, even if that information could be used against you.

      melbourne

      Level 27, 101 Collins Street
      Melbourne VIC 3000
      GPO Box 2924
      Melbourne VIC 3001

      Tel +61 3 9067 3100
      Fax +61 3 9067 3199

       

      GET IN TOUCH

        Contact form

        We handle your personal information in accordance with our privacy policy.

        Please do not send us any confidential information. By submitting this form, you agree that our review of the information you submit will not create a lawyer-client relationship between you and our firm (or any lawyer in our firm) and it will not prevent us from representing a party in any matter where the information you submit is relevant, even if that information could be used against you.

        follow us

        CLIENT LOGIN

        newcastle

        92 Young Street
        Carrington NSW 2294
        PO Box 394
        Newcastle NSW 2300

        Tel +61 2 4914 6900
        Fax +61 2 4914 6999

         

        GET IN TOUCH

          Contact form


          We handle your personal information in accordance with our privacy policy.

          Please do not send us any confidential information. By submitting this form, you agree that our review of the information you submit will not create a lawyer-client relationship between you and our firm (or any lawyer in our firm) and it will not prevent us from representing a party in any matter where the information you submit is relevant, even if that information could be used against you.

          canberra

          Level 9, 2 Phillip Law Street
          Canberra ACT 2601

          Tel +61 2 6243 3669
          Fax +61 2 8241 5699

           

          GET IN TOUCH

            Contact form


            We handle your personal information in accordance with our privacy policy.

            Please do not send us any confidential information. By submitting this form, you agree that our review of the information you submit will not create a lawyer-client relationship between you and our firm (or any lawyer in our firm) and it will not prevent us from representing a party in any matter where the information you submit is relevant, even if that information could be used against you.

            © 2017 McCullough Robertson. Site map Disclaimer Privacy Policy Statement of Business Ethics Credit Reporting Policy

            X