Local government reform: the journey 

Reforms introduced in 2019

Gifts and conflicts of interest

Gifts

What changes have been made?

• The former gift exemption categories no longer apply, and council members and CEOs must declare any gift received in their capacity as a council member or CEO valued at $300 or above (or where the cumulative value of gifts from the one donor exceeds $300 in a 12-month period). See sections 5.87A and 5.87B.
• If a council member receives any gift (or a series of gifts in a 12-month period) valued at $300 or above and the donor has a matter before council, the council member must disclose an interest and remove themselves from the meeting (unless approval is granted by the council or the Minister, depending on the value of the gift). The donor becomes a closely associated person in accordance with section 5.62.
• Similarly, gifts received by the CEO will exclude them from involvement in a matter requiring a local government decision (unless approval is granted by the council or the Minister, depending on the value of the gift).
• Gifts that will not create an interest are those involving attendance at events as approved by council in accordance with the Attendance at events policy and those from specified entities. These must still be disclosed.
• Local governments are required to develop and publish a policy covering council member and CEO attendance at events, which also addresses who will pay for the tickets. 
• The former definition of a gift has been deleted, and a new definition of gift in the Act now includes contributions to travel.
• CEOs are responsible for publishing and maintaining a gift register on the local government’s official website which now needs to be updated within ten days of a disclosure being made. 

Why have these changes been made?

• It is important that council members and CEOs make decisions – and are seen to be making decisions – free from influence.
• The changes increase transparency while recognising that gifts received in their personal lives, such as wedding presents, are not matters of public interest.
• The amendments also recognise that there is a valid role for council members in attending events, but makes this a decision of council in accordance with a published policy. 
  

What are the obligations on council members and CEOs when receiving a gift?

• Disclose all gifts valued over $300 received in their capacity as council member or CEO. This threshold includes cumulative gifts over a 12-month period from the one donor that add up to the value of $300 or above.
• Disclose these gifts within 10 days of receipt.
• A failure to comply with requirements is an offence. 

What is a gift received in their capacity as a council member?

• The question is, would the gift have been given if the person was not a member of the council (or CEO)? If the answer is no, then it must be disclosed if the value of the gift (or the cumulative value of gifts from the same donor) is over $300.
• Attendance at an event, whether as a representative of the local government or otherwise as a councillor or CEO, where the council member or CEO has not paid for the ticket or hospitality, is a gift and must be disclosed.
• Gifts that generally wouldn’t have to be disclosed would include:
  • wedding gifts,
  • birthday gifts,
  • gifts received through a will,
  • gifts (or travel) received through their ordinary course of outside employment, or
  • the temporary loan of personal property belonging to a relative, acquaintance, neighbour etc.
• Care should still be taken when receiving a gift through the pathways listed above as an assessment on the nature of the relationship between the recipient and the donor must still be made.  A conflict of interest still arises if that person requires a council decision.

How can a council member or CEO decide if the gift was received in that capacity?

• Each member will need to make their own assessment.
• The test is — if I was not a council member/CEO would this person have given me a gift (or a gift of that value)?
• If the answer is no, it must be disclosed.
• If in doubt, disclose.

How do you determine the value of a gift?

• The value of a gift is its market value at the time it is given.
• It will be up to the council member or CEO to establish the cost of the gift.
• If challenged, the onus is on the recipient to prove the value.
  

If I am away how can I make a disclosure in writing within 10 days?

• It is sufficient to email the CEO (or mayor or president if a CEO).
• The following details must be provided:
  • a description of the gift,
  • the name and address of the donor,
  • the date of receipt,
  • the estimated value of the gift,
  • the nature of the relationship between the donor and yourself, and
  • if the gift relates the travel, a description of the travel and the date of the travel.
    

How soon after a disclosure is made will it be available on the local government’s website?

• The CEO must update the register within 10 days of a disclosure being made.
• The version on the local government’s website must be up-to-date.
  

What new information is required in the gift register?

• Where the gift is in accordance with the Attendance at Events policy and that attendance has been approved by council, the entry must also include:
  • the date of council approval, and 
  • the reasons for the decision.
• Approval cannot be given for tickets that are provided directly to the council member (or CEO). 

Why are the publication of address details being changed?

• The full address of the donor still needs to be disclosed, but to balance privacy with transparency, only the town or suburb of the donor’s address will be published online.

How do election gifts work with the new framework?

• Amendments have not been made to election gifts.
• Election gifts are being reviewed in Phase 2.

Conflicts of interest 

What is an interest relating to a gift?

• It is a type of interest which recognises that a relationship is created between the donor and a recipient of a gift which could be perceived to affect decision-making.

What is the purpose of the interest provisions?

• These ensure that decision-making is free from influence and so decisions can be made in the best interests of the community.

What types of gifts could create an interest?

• Any gift (or a series of gifts in a 12 month period) valued at over $300 creates an interest as the donor becomes a closely associated person (section 5.62).
• An interest can be created from gifts that do not have to be disclosed in accordance with sections 5.87A and 5.87B such as those received from friends, relatives or an employer.
• For a council member, the interest is created from any gifts since they were last elected (although election gifts also creates an interest).
• For a CEO, the interest is created from any gifts received since the CEO was last employed or appointed to act.
  

Are any gifts excluded from creating an interest?

• Yes, section 5.62(1B) provides that the following gifts are considered not to have created an interest:
  • Attendance at events which have been approved by the council in accordance with the Attendance at Events policy
  • Gifts from the following entities:
    • WALGA (note: this does not include LGIS)
    • ALGA
    • Local Government Professionals WA
    • A Commonwealth, State or Territory government department
    • Another local government or regional local government.
• Note: these still have to be disclosed and entered on the gifts register if received in the capacity of council member or CEO.
  

When does this interest become important?

• When the donor has a matter before council.
  

What does this mean for the council member or CEO?

• A council member must not participate in any part of a council or committee meeting relating to that matter without approval.
• A CEO must not provide advice or a report in relation to the matter, either directly or indirectly, unless otherwise approved.
• If advice or a report is being provided by another employee, the CEO must disclose the nature of the interest they have in the matter.
  

What do I do if a matter comes before council affecting the donor?

• A council member must disclose this interest in writing to the CEO before the meeting or immediately before the matter is discussed.  (If disclosure is made to the CEO, the CEO must bring this to the attention of the presiding member before the meeting and the presiding member must bring this to the attention of the attendees immediately before the matter is discussed). 
• A CEO who has an interest must disclose the nature of the interest in a written notice given to council.

When can approval be given to participate or provide advice or a report?

• If the interest is from a gift valued at up to $1000 and full disclosure has been made, the council, by absolute majority, can approve participation (section 5.68) but only in the following circumstances:
  • those members decide that the interest is so trivial or insignificant as to be unlikely to influence the disclosing member or CEO’s conduct in relation to the matter; or 
  • the interest is common to a significant number of electors or ratepayers in the case of disclosure by a council member.
• The council can decide to allow the CEO to provide advice or a report if they decide that the nature of the interest is unlikely to influence the CEO (section 5.71B).
• The decisions and the council’s reasons for making that decision must be recorded in the minutes of the meeting. 

Why is the council deciding on whether another council member can participate in consideration of a matter in which they have an interest?

• Council is in the best position to judge whether the receipt of the gift is likely to affect the person’s decision-making.
• If the council agrees, the council member will be able to be present during and participate in the discussions and decision-making in relation to that matter.
• Council will need to record the reason for making that decision in the minutes so there is accountability.
• A cap is being placed on this so that for gifts over $1000, an application will need to be made to the Minister for approval to participate.

Can a committee make the decision or does the member have to go to the full council for permission to participate?

• The council can give power to a committee to decide if they feel it is appropriate.

What if the gift is over $1000?

• Only the Minister can make a decision to allow participation or the provision of advice or a report (section 5.69) in these circumstances.
• The Minister can only decide to allow a council member to participate if:
  • A quorum is needed or
  • the Minister is of the opinion that it is in the interests of the electors or ratepayers to do so.
• The Minister can decide to allow the CEO to provide advice or a report if the Minister is of the opinion that the interest is unlikely to influence the CEO in the provision of the advice or report (section 5.71B).
• The Minister’s decision and the reasons for it must be recorded in the council’s minutes when the matter is considered by council.
  

Will the CEO have to make an application to council for approval to be involved in matters affecting the donor of a gift from whom the CEO has received a gift?

• Yes. A CEO must, when proposing to provide any advice or report to the council or a committee, disclose the nature of any interest (section 5.70). 
• This must be in writing and be provided to the council.
• The advice or report could be one that will be provided directly by the CEO or indirectly through another employee.
• A CEO who has an interest relating to a gift and authorises another employee to provide advice or a report must disclose the nature of their interest when the advice or report is provided by that other employee (section 5.71A).

Who is responsible for liaising with the Minister to get approval for the CEO to be involved in a matter where the CEO has received a gift over $1000?

• It is the council’s responsibility.
• It would be practical for the Mayor or President to be authorised by Council to do this.

Attendance at events policy

What is the purpose of an Attendance at Events Policy (section 5.90A)?

• For council to actively consider the purpose of and benefits to the community from council members attending events.
• To provide a framework for the acceptance of invitations to such events.
• To clarify who pays for tickets to events.
• To provide transparency to the community on the acceptance of tickets to events.
  

What should a council consider in developing and endorsing an Attendance at Events Policy?

• What benefit will there be to the community or local government in having council member(s) or the CEO (or staff) attend?
• What role will the person attending the event be taking: for example, speaker, giver of awards, member of the audience?
• How many people should appropriately be authorised to attend?
• Is the event to be held within the district?
• Who is bearing the costs of attending and is this appropriate? 
• Should the person attending contribute to the costs?
• Who provides the tickets: the organiser of the event or a third party.
  

What matters should be contained in the Attendance at Events Policy?

• The criteria that the council will use in deciding whether attendance is appropriate.
• How many people should be approved to attend as representatives of the council.
• How tickets to events will be distributed.
• How much a councillor or CEO will have to contribute to the costs of attending.
  

Does the policy cover all events that a council member attends?

• No, a council member may attend an event outside the policy, or without the council’s authorisation.
• If they do so, they must not use a ticket that has been given to the council or that has been funded by another person.
• Unless attendance has been paid for in full by the council member, they must disclose the value of the tickets or hospitality to the CEO within ten days of receipt.
• The council member will also have an interest in any matter involving the donor that comes before council.
• The policy should cover all events that the council member attends as representative of the council.
  

Does the policy have to detail actual events and who will attend?

• No, but if council members traditionally attend certain events, these could be detailed in the policy so that further approval is not needed.
• The policy must clearly outline on what basis the decision to approve attendance at any other events will be made. 
  

As a council member can I attend an event if I believe it is in accordance with the policy?

• You must have council approval to attend – this will either be explicitly stated in the council approved policy or a council decision will be required.

What if tickets or an invitation is given directly to a council member?

• These will not be covered by the policy.
• The recipient must disclose receipt of the tickets (and any other associated hospitality) within 10 days.
• The recipient will also have an interest in any matter involving the donor of the tickets that comes before council.
• If the tickets or invitation are offered directly to a council member, the council member can refuse the gift and advise the donor that they could offer these to the council.

Universal training

Why has universal training been introduced?

• Council members have a unique and challenging role.
• They oversee multi-million dollar budgets and make difficult decisions that impact the well-being of communities.
• Unlike board members they are not selected for the role based on their knowledge and experience, but on their leadership and willingness to contribute to the community.
• Once elected, they are required to make decisions on matters as diverse as planning applications, budgeting, rates, support for community organisations, long term planning for the district and the recruitment of and employment relationship with the CEO.
• They are also expected to understand and comply with meeting procedures, conflicts of interest and codes of conduct.
• This reform is key to providing council members with the skills and knowledge to perform their role as leaders in their district.

What is included in the elected member training?

There are five foundational units that make up the course Council Member Essentials:

• Understanding local government
• Serving on council
• Meeting procedures
• Conflicts of Interest
• Understanding of financial reports and budgets.

How long will it take a council member to complete the training?

• The training is expected to take approximately 5 days over the course of a year.

Who will deliver the training?

The training providers are:

• North Metropolitan TAFE;
  
• South Metropolitan TAFE; and
• Western Australian Local Government Association (WALGA).

All providers will offer all five modules in face-to-face and online mode. More information can be obtained from the providers.

What will the elected member training cost?

• Training providers should be contacted for the proposed schedule of fees.

Who has to do the training?

• Every council member is to undertake the training within 12 months of being elected commencing from the October 2019 local government elections, unless an exemption applies.
• The training is valid for five years so a council member will only be required to undertake the training at every second election.

What exemptions apply?

• Council members will not have to undertake the course Council Member Essentials if, in the previous five years, they have passed
  •  the Council Member Essentials course, or
  • 52756WA — Diploma of Local Government (Elected member).
• In addition, current council members who have passed the course titled LGASS00002 Elected Member Skill Set within the last 5 years prior to being elected and before 1 July 2019 will be exempt.  This is more than just attending - it involves completing the course and passing assessments on each module

Can anyone do the training?

• Yes. There is no restriction on who can complete the training.
• The unit on understanding financial statements and budgets may be of interest to ratepayers’ association members, for example.
• A candidate may wish to complete the meeting procedures unit before being elected.

Will there be RPL for the training?

• No, but certain exemptions will be available (refer to earlier question).

If a council member is an accountant, will they have to do the unit on ‘understanding financial reports and budgets’?

• Yes, they still need to understand local government specific requirements.
• They will, however, be able to do the online module which will enable them to complete it at their own pace and focus on the new material.

If I’m an existing council member why do I have to do the training?

• Legislation and best practice changes over time.
• Repeating the training allows for both a refresh of the principles as well as updates on aspects that have changed.
• By having self-paced training options available, continuing council members will be able to quickly refresh their understanding and focus on the changes.

How will community members know if their councillor has completed the training?

• Local governments will be required to report annually on who has completed training and publish this on the local government’s website. The report will list each council member and the training each has completed in that financial year.  This will include both the Council Members Essentials course where applicable and continuing professional development in line with the local government’s policy.
• Most council members value increasing their skills and knowledge in relation to this important role they undertake.
• It is believed that community and peer pressure will ensure that all councillors will complete the training.

Continuing Professional Development (CPD)

What is this new CPD requirement?

• Each council is now required to prepare and adopt a policy covering the continuing professional development of its council members.
• The policy is to be published on the local government’s website.

What should be considered by the council when developing the policy?

• The content of the policy will be determined by the council.
• It should include developmental opportunities for each councillor and a statement of the extent of payment by the local government.
• In deciding the content of the policy, council should consider:
  • the strategic direction of the local government,
  • skills gaps among the council as a whole, and
  • the needs of individual councillors.

How often should the policy be reviewed?

• The policy must be reviewed after each ordinary election to take into account the needs and skill sets of the new councillors and can be reviewed more frequently.

Are there any restrictions on who can deliver continuing professional development to councillors?

• No, each council will decide what type of training is appropriate for their councillors.

Induction course for prospective candidates

Overview

The induction is a free online course which is mandatory for individuals who are considering running for election as a local council member.

The aim of the induction is to assist individuals to understand both the role they will be taking on if they are elected; and the laws that govern the way they must conduct their election campaign.

The induction provides a brief overview of:

• Local government
• The role of council and council members
• Election and campaigning rules, including gifts and social media.

The course takes approximately one hour to complete.

Legislation

The Local Government Act 1995 requires that an individual must meet certain requirements to be a candidate in a local government election in WA . This includes the completion of the induction course.

Individuals who are intending to nominate as a candidate in a local government election must complete the induction prior to nominating.

This includes individuals who have previously been elected as a council member.

Current or former council members required to complete induction

The induction course is mandatory for current or former council members who intend to nominate for election and have not previously completed the induction.

The induction will serve as a refresher and provide new or updated information regarding the obligations of council members. Rules and expectations change, and there have been a number of legislative reforms in relation to local government in recent years. In addition, it may be a useful reminder about the laws governing a local election campaign.

Online delivery

The induction course is available online through the Department of Local Government, Sport and Cultural Industries website.

This allows individuals to complete the induction no matter where they are located at a time that suits their work and personal commitments.

Course content

The induction course is designed to help individuals understand the role and responsibilities of council members when considering whether to nominate for election.

There are quizzes included in the course to help individuals check their understanding of the information, but there is no test that individuals must pass to complete the induction.

Internet access

If you do not have access to the internet, you can visit your local library or local government offices to get access to the induction.

Local governments are encouraged to make computer facilities available to support a diverse range of prospective candidates in their local community.

Cost

The online induction module is free.

Accessibility and inclusion

The induction has been designed to meet the Web Content Accessibility Guidelines 2.0 level AA as per the Accessibility and Inclusivity Standard.

If you need any assistance in accessing the induction, please contact the Department at LGTraining@dlgsc.wa.gov.au

Record of completion

At the end of the induction, individuals must ensure that they fill in the short e-form and click the ‘Register’ button so that their completion of the induction is registered with the Department. The individual should then receive a system-generated confirmation email which should be retained as a record of the induction.

Please note that email security systems may result in the confirmation email being filtered to a ‘spam’ or ‘junk’ folder, and it may be necessary to check that folder. If you are concerned that you did not receive the confirmation email, please contact the Department at LGTraining@dlgsc.wa.gov.au.

Enforcement

Individuals nominating for a local election are required to declare that they have undertaken the induction as part of completing their nomination form. The Department strongly recommends that individuals show a digital or print copy of their confirmation email when they submit their nomination to the Returning Officer.

It is an offence to make false or misleading statements on the nomination form and penalties may apply. This includes a fine up to $5000 or one-year imprisonment.

The Department can check registration data to verify whether an individual has completed the induction. The Department will audit induction records as required.

Local information sessions for prospective candidates

The Department encourages local governments to continue to offer information sessions for prospective candidates, if feasible to do so. These sessions can supplement the induction and provide specific information relevant to the local government area.

 Further information available

If you have any queries, please contact the Department of Local Government, Sport and Cultural Industries at LGTraining@dlgsc.wa.gov.au.