New regulations to support local government oversight

News story
Local Government Inspector Regulations to provide detail of new oversight powers.
Last updated:

The Local Government (Local Government Inspector) Regulations 2025 (the Inspector Regulations) and the Local Government Regulations Amendment (Local Government Amendment Act 2024) Regulations 2025 (the Inspector Amendment Regulations) provide the operational detail for new oversight powers under the Local Government Act 1995 (the Act).

Parts 8A and 8B introduced by the Local Government Amendment Act 2024 have been proclaimed to enable these regulations to start from 1 January 2026.

The regulations will set out how new laws will be applied, such as:

  • the appointment of monitors
  • setting out the types of penalties and infringements that apply
  • prescribing certain offences as specified breaches such as failing to disclose a relevant interest when being involved in a council decision, or conduct breaches such as misusing council resources
  • the publication of information about complaints
  • updating existing regulations to recognise the role and powers of the Local Government Inspector (the Inspector) and inspectorate officers.

Inspector Regulations

The Inspector regulations commence on 1 January 2026, with the inaugural Inspector, Mr Tony Brown, assuming his functions from that date.

Complaints

Regulations 3 to 10 deal with new requirements for handling breach complaints and general complaints under new Part 8A of the Act and include new definitions for ‘conduct breaches’ and ‘specified breaches’, which replace the existing terminology for ‘minor breaches’ and ‘serious breaches’.

These regulations introduce an escalation process for a behavioural breach to be treated as a conduct breach after two prior behavioural breaches have been found.

A process for mediation of breach complaints is addressed through the introduction of a panel of mediators, established by the Principal Adjudicator.

Regulation 9 requires information relating to censures and orders by the State Administrative Tribunal (SAT) to be published on the Inspector’s website for a period of
12 years. This time period aligns with the period of three election cycles and provides greater transparency for electors in considering prospective candidates in future elections.

Regulation 10 clarifies the way complaints about a local government CEO may be dealt with by the Inspector.

Monitors

Regulations 11 to 14 make provision in relation to the remuneration, selection, appointment, and early termination of a monitor.

Regulation 15 prescribes the powers of a monitor which includes the ability to adjourn a council or a committee meeting attended by the monitor until the following day.

The monitor’s reason for adjourning the meeting must be limited to the following reasons:

  • the meeting is disorderly
  • the meeting is not being conducted in accordance with the Act
  • the meeting is considering a motion that, if carried, would result in contravention of a written law or an action that is not authorised.

Powers

Regulations 16 and 17 deal with the powers of an authorised officer of the Inspector for the purposes of an entry warrant.

Regulation 16 prescribes the application process and information required under section 8B.50(2)(a) of the Act.

The form of the entry warrant is included in Schedule 1.

Infringement notices

Regulations 19 to 23 deal with infringeable offences under the Act and prescribe the requirements for the Inspector to be able to issue fine infringements.

A table of prescribed offences for which the Inspector may issue a fine infringement is included in Schedule 2, as outlined below:

OffenceModified penalty
4.87(1) – Unauthorised electoral material$500
5.21(5) – Failure to vote$1,000
5.75(1) or (2) – Failure to lodge a primary return$1,000
5.76(1) or (2) – Failure to lodge an annual return$1,000
5.87A(1) – Failure of council member to declare a gift within 10 days$1,000
5.87B(1) – Failure of CEO to declare gift within 10 days$1,000
9.10(6) – Failure to return identify card within 14 days of cessation of employment$500
Local Government (Administration) Regulations 1996:
Regulation 36B(1) or (2) – New offences relating to training
$500
Local Government (Elections) Regulations 1997:
Regulation 22AA(4) – Offence relating to failing to destroy or delete electoral rolls
$500
Local Government (Elections) Regulations 1997:
Regulation 22AA(7) – Offence relating to failing to destroy or delete electoral rolls
$500
Local Government (Elections) Regulations 1997:
Regulation 30B(2) – Failure of candidate to disclose gifts
$1,000

The period within which a fine may be issued is 6 months. However, an authorised officer will have 28 days to issue a fine once the officer forms the view that there is sufficient evidence to support the allegation of the offence.

Transitional provisions

Regulations 25 to 27 insert transitional provisions to prescribe how certain matters relating to complaints are dealt with as part of the handover of responsibility from LGIRS to the Inspector.

Regulation 25 requires a local government to publish information relating to a censure ordered by the Standards Panel under section 5.118 of the Act until 15 October 2027.

Regulation 25 also requires the local government complaints officer to maintain the register of minor breaches until 15 October 2027.

Regulation 26 deals with the SAT enforcement powers and the failure of a person to comply with an order of the Standards Panel or the SAT.

Regulation 26 clarifies that a suspension order or disqualification under sections 5.119 or 5.117 continues to apply after 1 January 2026.

Regulation 27 provides that the disclosure of information relating to a complaint under section 5.123 continues to apply after 1 January 2026.

Inspector Consequential Regulations

These regulations amend the following existing regulations:

  • Local Government (Administration) Regulations 1996 (the Administration Regulations)
  • Local Government (Audit) Regulations 1996 (the Audit Regulations)
  • Local Government (Financial Management) Regulations 1996 (the Financial Management Regulations)
  • Local Government (Functions and General) Regulations 1996 (the Functions and General Regulations)
  • Local Government (Model Code of Conduct) Regulations 2021 (the Code of Conduct Regulations)
  • Local Government (Regional Subsidiaries) Regulations 2017 (the Regional Subsidiary Regulations)

The Inspector Consequential Regulations deal with the following key matters:

  • updated references to the Inspector, where applicable, to reflect the Inspector’s role and functions
  • new provisions to prescribe information that must be treated on a confidential basis at council and committee meetings
  • a new register to deal with misconduct and adverse findings
  • prescribing offences and penalties for failure to complete mandatory council member training, including a requirement to repay advance payments of fees and allowances
  • prescribing how a local government CEO may deal with unreasonable complaints from members of the public
  • updating the Model Code of Conduct to reflect the new complaints handling system
  • placing certain restrictions on payment of a council member’s legal expenses for appeals relating to financial penalties imposed or misconduct
  • updating the compliance audit return process to reflect it becoming a responsibility of the Inspector.

Closed meetings

For the purposes of section 5.23(4)(g), these Administration Regulations prescribe additional information that may be treated on a confidential basis at meetings:

  • the price or potential price for the sale or purchase of property by the local government, including any information relating to the price or potential price
  • a behavioural breach complaint and any information relating to the complaint
  • information relating to a property that is used or potentially to be used for:
    • a shelter for homeless persons
    • a shelter for persons who have experienced family or domestic violence
    • a residence for employees or officers of a local government, the State or the Commonwealth.

Mandatory training expenses

New regulation 34AF of the Administration Regulations requires the repayment of fees and allowances made in advance where a sanction for failing to complete mandatory training has been imposed on that council member.

New regulation 36A of the Administration Regulations requires a council member to make a declaration that they have completed their mandatory training within 1 month following the 12-month period a council member has to complete the training.

Regulation 36B of the Administration Regulations prescribes penalty offences for failing to make the declaration or for making a false declaration.

Unreasonable complaints

Part 10A of the Administration Regulations is inserted for how a local government CEO can deal with unreasonable complaints.

Regulation 37A of the Administration Regulations requires the CEO to provide notice to the person making the unreasonable complaint, which includes:

  • details of the local government’s previous responses regarding the subject matter of the complaint
  • the reasons why the CEO is satisfied that the complaint is vexatious, misconceived, frivolous or without substance
  • the reasons why the CEO is satisfied that responding to the complaint would divert an unreasonable portion of the local government’s resources
  • details of how the complainant can make a general complaint to the Inspector in relation to the CEO’s decision.

Legal expenses

New regulation 19D of the Financial Management Regulations inserts prohibitions on the payment of certain kinds of council member legal expenses under section 6.14A of the Act.

A local government must not directly or indirectly pay wholly or partly for any of the following liabilities of a council member an amount that is ordered to be paid by an adjudicator under section 8A.19(2) or the regulation 7 of the Inspector Regulations:

  • a modified penalty
  • a fine imposed as a penalty for committing an offence under the Act
  • an amount ordered to be paid by the SAT under Part 4, Division 5 of the
    State Administrative Tribunal Act 2004
  • any exemplary or punitive damages awarded in civil proceedings before a court.

Visit the Local Government Inspector and monitors page for more information on the Inspector Regulations and the Inspector Consequential Regulations.

Local government compliance timeline

From 1 January 2026:

  • New complaints framework begins.
  • Complaints can be lodged with the Inspector.
  • Update registers to reflect new compliance requirements.
  • Employee code of conduct must address secondary employment outside local government.
  • Ensure meetings are only closed for prescribed reasons or apply to LGIRS for approval.

By 1 April 2026:

  • All local governments must adopt an updated Model Code of Conduct for council members, candidates and committee members to align with the new complaints handling system.

By 1 July 2026:

  • All local governments must ensure insurance policies exclude coverage for prohibited expenses.

By 31 December 2026:

  • Council members elected between 1 July 2025 and 31 December 2025 must complete mandatory training and submit a declaration of completion within one month of this date.

15 October 2027:

  • Transitional period ends for publishing censure orders and minor breach findings under the previous complaints system.

Have a question or want to report a problem?

Fill in the form to get assistance or tell us about a problem with this information or service.

Send feedback