Accounting for Cash in Lieu of Open Space

The following guidance outlines the legislative requirements for different time periods, along with recommended practices to provide a consistency of treatment. 

Contributions should be accounted for in the following manner:

1. Post 12 September 2020
   1. Any cash in lieu funds received under section 154 of the PDA should be placed in a reserve account for each sub-division within the municipal account in accordance with section 6.11 of the Local Government Act 1995 (the Act).
   2. Section 154(3) of the PDA requires interest earnt on any invested funds to be applied to the respective reserve account.
2. From 10 April 2006 until 11 September 2020
   1. Any cash in lieu funds received under section 154 of the PDA should be held in the local government’s trust account.
   2. Section 6.9(3) of the Act requires any interest earnt on invested trust monies to be applied against the funds held.
   3. If cash in lieu funds are held in the trust account for a sub-division, and if future cash contribution instalment(s) are received on or after 12 September 2020 for the same sub-division, those funds should be held in a reserve account (refer 1a above).
3. Prior to 10 April 2006
   1. Any cash in lieu funds received prior to 10 April 2006 would have been received under section 20C of the Town Planning and Development Act 1928 (TPD).
   2. Any remaining unexpended funds received under the TPD should be held in the municipal account as restricted cash.
   3. Where TPD contributions were moved to the trust account and where a balance currently remains in the trust account, the balance should be moved back to the municipal account.
   4. It is recommended any unexpended funds be placed in a separate reserve account for each sub-division, but to do that, local governments will need to create a reserve account for each sub-division under section 6.11 of the Act. 
   5. There is no legislative provision on interest earnt on invested funds, but it is recommended any interest earnt on invested funds be applied to the restricted funds or reserve accounts.

The material contained in this guidance is based on departmental views and interpretation of relevant legislation. It does not purport nor is it intended to constitute legal advice. The department expressly disclaims any liability to any person in respect of anything done or not done as a result of the contents of this publication.

If you require any further information please email the department: lghotline@dlgsc.wa.gov.au