Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The objects of this Bill are to amend the Local Government Act 1993 (the Principal
Act):

(a) to clarify the relationship between public-private partnerships and the
tendering requirements under the Principal Act, and

(b) to clarify that certain annual charges (such as for domestic waste management
and stormwater management services) may be levied on individual lots in a
strata scheme and on company title properties.

This Bill also makes consequential amendments to other Acts and a regulation.

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on a day or days to be
appointed by proclamation.

Clause 3 is a formal provision that gives effect to the amendments to the Local
Government Act 1993 set out in Schedule 1.

Clause 4 is a formal provision that gives effect to the consequential amendments to
other legislation set out in Schedule 2.

Clause 5 provides for the repeal of the proposed Act after all the amendments made
by the proposed Act have commenced. Once the amendments have commenced the
proposed Act will be spent and section 30 of the Interpretation Act 1987 provides
that the repeal of an amending Act does not affect the amendments made by that Act.

Amendments relating to public-private partnerships and tendering
requirements
Section 55 currently provides that a council must invite tenders before entering into
certain contracts. Part 6 of Chapter 12 currently sets out the requirements in relation
to the participation by councils in public-private partnerships. The proposed
amendments make it clear that a council may choose to either go to tender or to use
the public-private partnership model for certain projects.

Schedule 1 [1] amends section 55 to provide that contracts to enter into
public-private partnerships and contracts entered into by a council for the purposes
of carrying out a project under a public-private partnership are contracts for which a
council is not required to invite tenders.

Schedule 1 [2] and [3] repeal section 55 (5)–(7) and insert a new section 55A to
clarify the manner in which the tendering requirements under section 55 extends to
entities formed by a council.

Schedule 1 [4] clarifies the nature and operation of public-private partnerships and,
in particular, makes it clear that the types of services that relate to such partnerships
are services that are delivered during the carrying out of any project under the
partnership. Schedule 2.1 makes a consequential amendment to clause 408 of the
Local Government (General) Regulation 2005 in relation to the types of
arrangements that are excluded from the definition of public-private partnership.

Amendments relating to annual charges
Part 1 of Chapter 15 of the Principal Act includes provision relating to the making
and levying of annual charges for certain services provided by a council, including
services such as water supply, sewerage, domestic waste management and
stormwater management services.

Schedule 1 [5] inserts proposed section 495A to make it clear that such annual
charges may be levied on individual lots in a strata scheme or on a company title
dwelling or a portion of a company title building.

Schedule 2.2 and 2.3 contain consequential amendments to the Strata Schemes
(Freehold Development) Act 1973 and the Strata Schemes (Leasehold Development)
Act 1986, respectively, to make it clear that annual charges in relation to stormwater
management services cannot be payable by the body corporate in relation to the
relevant strata scheme.

Other amendments
Schedule 1 [6] enables savings and transitional regulations to be made as a
consequence of the proposed Act.

Schedule 1 [7] inserts savings and transitional provisions as a consequence of the
enactment of the proposed Act.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

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