The department offers local governments:
- on-going support to build financial reporting and financial management information capability
- information on upcoming Annual Local Government Finance Forums or webinars on accounting and regulatory changes and advice on topical financial reporting and budgetary matters
- relevant, timely and reliable financial information via LG Alerts/circulars, to assist in their effective management of financial compliance
- on-going updates to proposed Model Financial Statements (MFS) and related guidelines
- information on Financial Better Practice Reviews.
Introduction to local government accounting
The Introduction to Local Government Accounting is a guide to assist new starters with accounting principles specific to Western Australian local government:
Budget and budget review
Below is guidance to assist local governments in preparing budgets and notes in accordance with applicable authoritative requirements.
Financial reporting
Model Financial Statements
The Model Financial Statements (MFS) are a guide to the common functions and activities of local government; therefore, all local governments will still need to review their version, and:
- add any transactions or activities not covered
- remove any sections that might not be applicable, for example investment property.
Downloads
- Annual Financial Report for year ended 30 June 2026 Model Class 1 and 2 Template (PDF) (774KB)
- Annual Financial Report for year ended 30 June 2026 Model Class 3 and 4 Template (PDF) (734KB)
- City of Country - AFR for the year ended 30 June 2026 Model Class 1 and 2 Template (xlsx) (345KB)
- Guidance Material - Annual Financial Report Models - Class 1 and 2 - 30-04-2026 (PDF) (774KB)
- Guidance Material - Annual Financial Report Models - Class 3 and 4 - 30-04-2026 (PDF) (1031KB)
- Shire of Country - AFR for the year ended 30 June 2026 Model Class 3 and 4 Template (xlsx) (306KB)
Non-financial Assets Valuation
LG Alerts for financial reporting
Local government guidance: undertaking your next prescribed budget review
- The Office of the Auditor General (OAG) Public Sector Financial Statements Better Practice Guide — Western Australian Public Sector Financial Statements — Better Practice Guide — Office of the Auditor General
Accounting guidelines and circulars
The following technical accounting guidelines will assist local governments to ensure they are complying with AAS, the Local Government Act 1995 and associated regulations:
- LG Alert: Local Government Regulations Amendment (Financial Management and Audit) Regulations 2022)
- LG Alert: Local Government Asset Revaluations
- LG Alert: Local Government Financial Better Practice Review Program
- Use of Corporate Credit Cards (Operational Guideline)
- Developing and updating policies and procedures
- Related Party Disclosure Document Guideline (DOCX) (173KB)
- Accounting Guideline - Non-Current Physical Assets (DOX) (861KB)
Audit
Guidance to assist councils in understanding the role of audit and audit committees:
- LG Alert: OAG Audit Report IT (Audit report identifies cyber security issues)
- LG Alert: OAG Guide to managing fraud and corruption risks
- LG Alert: OAG Financial Audit Results — Local Government 2020-21
- The appointment, function, and responsibilities of audit committees
- OAG Audit Committee Better Practice Guide.
Links to Local Government Act 1995, Regulations and Orders (legislation.wa.gov.au):
- Local Government Act 1995
- Subsidiary legislation in force
- Local Government (COVID-19 Response) Order 2020
- Local Government (COVID-19 Response) Amendment Order 2022.
Links to other Legislation:
Accounting guidelines and circulars
The following technical accounting guidelines will assist local governments to ensure they are complying with AAS, the Local Government Act 1995 and associated regulations:
- LG Alert: Local Government Regulations Amendment (Financial Management and Audit) Regulations 2022
- LG Alert: Local Government Asset Revaluations
- LG Alert: Local Government Financial Better Practice Review Program
- Use of Corporate Credit Cards (Operational Guideline)
Downloads
Accounting Guideline - Non Current Physical Assets (DOCX) (861 KB)
Introduction to Local Government Accounting (DOCX) (3977 KB)
Related Party Disclosure Document Guideline (DOCX) (173 KB)
Template 1 - Checklist for Asset Accounting (DOCX) (17 KB)
Template 1 - Example Budget Plan (XLXS) (21 KB)
Template 2 - Example End of Month Checklist (XLXS) (69 KB)
Template 2 - Impairment Test Questionnaire (DOCX) (16 KB)
Template 3 - Example Activity Based Costing Worksheet (XLXS) (16 KB)
Template 3 - Reconciliation of Asset Ledger to General Ledger (XLXS) (21 KB)
Budget and audit extensions
Under the Local Government Act 1995:
- a local government's budget for the financial year must be in place no later than 31 August of that year
- the draft financial statements for the previous financial year must be submitted for audit no later than 30 September in the next financial year.
If a local government finds itself unable to meet these statutory deadlines, it can request the Minister for an extension to these deadlines. However, an extension must be requested prior to the deadline expiring, as the Act does not permit for retrospective extensions.
Applications must be accompanied by sufficient evidence to indicate that the applicant has authority to submit the application on the local government's behalf. In practice, the application will require a simple majority resolution of council or a letter/email from the CEO.
If an application is submitted without proof of authorization, LGIRS will contact the applicable CEO to confirm that the application was submitted on their instructions.
Copies of the application forms are provided below and should be submitted to legislation@lgirs.wa.gov.au
Disclaimer
Although every care has been taken in the production of these documents, neither the Crown in the right of the State of Western Australia nor any servant or agent of the Crown accepts responsibility for any loss or damage suffered at any time by any person as a result of any error, omission or inaccuracy in the publication whether or not the error, omission or inaccuracy has resulted from negligence or any other cause.
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