The Compliance Audit Return (CAR) is an annual self-assessment required under regulation 14 of the Local Government (Audit) Regulations 1996. Every local government in Western Australia must complete a CAR for the period of 1 January to 31 December each year.
The deadline for submitting your Compliance Audit Return (CAR) for the period of 1 January to 31 December 2025 has been deferred until 30 September 2026.
With the introduction of the Local Government Inspectorate, there have been a number of changes to the statutory requirements for which a compliance audit is needed. These changes are outlined in regulation 13 of the Local Government (Audit) Regulations 1996, published on 1 January 2026.
In addition, the Local Government Inspector has the ability to limit what statutory requirements are included in the CAR, under regulation 15A of the Local Government (Audit) Regulations 1996, published on 1 January 2026. These requirements are currently being determined, with further guidance materials and information to be made available to local governments by 31 March 2026.
Queries relating to the CAR can be sent to contact@lginspector.wa.gov.au.
The CAR ensures local governments review their compliance with key legislative requirements under the Local Government Act 1995 and associated regulations. This process promotes accountability, transparency, and good governance across the sector.
The CAR must be completed by the local government administration, reviewed by the Audit, Risk and Improvement Committee (ARIC), and then adopted by the council before submission to the Local Government Inspector by 31 March of the year following the audit period.
The Inspector’s role is to:
- prepare and issue the required CAR form
- ensure integrity and accuracy of compliance reporting
- intervene early if a CAR reveals systemic non-compliance
- appoint monitors to assist local governments in resolving issues.
Process for completing the CAR
Step 1: Complete the CAR
- Carry out a compliance audit for the period 1 January to 31 December.
- Prepare a CAR in the approved form issued by the Inspector.
- Review each question thoroughly and provide accurate responses based on your local government’s activities for the previous calendar year.
- Gather any internal records or documentation needed to verify your answers.
Step 2: Review and Certify
- Once completed, the CAR must be reviewed by your ARIC.
- The ARIC will check for accuracy and compliance before reporting to the council and recommending adoption.
Step 3: Council Adoption
- Present the CAR to the council for formal adoption.
- Record the council resolution in your meeting minutes, as this will be required for submission.
Step 4: Submit Online
- Log in to the CAR Portal.
- Upload the following:
- the completed CAR
- a copy of the Council resolution adopting the CAR
- any additional information explaining or qualifying the compliance audit.
- Submit to the Inspector before the deadline.
Self-Reporting Non-Compliance
Local Governments are encouraged to self-report to the Local Government Inspector any incidence of significant non-compliance.
This may be defined to include reporting non-compliance with matters that also form part of the Compliance Audit Return, however you are encouraged to contact the Inspector’s Compliance team for advice and guidance via email: compliance@lginspector.wa.gov.au.
Reports of non-compliance should include details of the identified matter; the steps undertaken, or intended to be undertaken, to remedy the identified matter; and the approximate timeframe for the remedy to take effect.
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