Financial management

Rates and revenue policy

Tranche 2

Status: Regulations being developed

Commencement: To be confirmed

What is proposed?

A rates and revenue policy will be required by all local governments to increase transparency for ratepayers in relation to rates and other revenue. The policy must be annually updated with a forecast of future costs of providing local government services.

How these changes help

Some councils defer rate rises, resulting in the eventual need to drastically increase rates to cover unavoidable costs, especially for the repair of infrastructure. The policy will give ratepayers a better understanding of a local government’s financial management and assurance of the planning for rates revenue over future years.

Audit, risk and improvement committees

Tranche 2

Status: Regulations being developed

Commencement: To be confirmed

What is proposed?

Audit committees are proposed to be revised as 'audit, risk and improvement committees'. Audit, risk and improvement committees will be required to have an independent chair to ensure a level of independence and impartial oversight.

Local governments will also be able to establish shared audit, risk and improvement committees with other local governments.

How these changes help

The introduction of an independent chair aims to increase community confidence in a local government's financial and risk management. Local government operations may also benefit through appointing an independent person with risk and financial management expertise.

Read more about audit, risk and improvement committees.

Building upgrade finance

Tranche 2

Status: Regulations being developed

Commencement: To be confirmed

What is proposed?

Reforms are proposed to enable local governments to facilitate loans through third-party financiers so that building owners are enabled to undertake environmental or heritage upgrades to commercial or heritage listed buildings. Following the Bill reforms, further regulations would be required to be developed.

A building upgrade finance agreement facilitates:

• the building owner seeking finance for a building upgrade 
• the finance provider lending money to the building owner for the upgrade
• the local government collecting repayments from the building owner and transferring funds to the finance provider.

How these changes help

Building upgrade finance will allow local governments to support building owners in their districts and enable improvements to achieve heritage and environmental improvements for buildings.

Waste charges on rates notices

Tranche 2

Status: Regulations being developed

Commencement: To be confirmed

What is proposed?

The cost of waste collection services will be required to be shown on rate notices separately.

How these changes help

Separating charges for waste collection provides transparency and awareness of costs for ratepayers.

Credit card reporting

Tranche 1

Status: Commenced

Commencement: 1 September 2023

What has changed?

Local governments are required to disclose information about each transaction made on a credit card, debit card or other purchasing cards.

What do local governments need to do to implement the change

Local governments are required to prepare a list of credit card payments made by employees each month, and the list must be presented to council at the next ordinary meeting and recorded in the minutes.

For more information read the department's guidance about credit card reporting.

Model financial statements

Tranche 1

Status: Commenced

Commencement: 1 July 2023

What has changed?

Recognising the difference in the complexity between smaller and larger local governments, financial reporting requirements are now tiered — meaning that smaller local governments (class 3 and 4) have more simplified financial reporting requirements compared to larger local governments (class 1 and 2).

These changes are supported by standard templates for Annual Financial Statements based on local government classes.

What do local governments need to do to implement the change

Local governments need to ensure that all financial reporting is in line with the model financial statements.

Find out more about model financial statements.