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

Overview of Bill

The object of this Bill is to amend the Local Government Act 1993 (the Act):

(a) to convert the status of local and county councils from their existing status as
bodies corporate to the status of bodies politic of the State with the legal
capacity and powers of an individual, and

(b) to provide that a person who is appointed to an employment position at a
council on a temporary basis while the holder of the position is on parental
leave may continue in that position for a period of up to 24 months (instead of
the existing upper limit of 12 months applicable to other temporary
appointments), and

(c) to include a regulation-making power to specify the matters to be taken into
account by the Minister in granting consent to a council forming or acquiring
a controlling interest in a corporation or other entity, and the conditions of such
a consent.

The Bill also enacts transitional provisions that convert existing local and county
councils from being bodies corporate to being bodies politic of the State. The

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Explanatory note page 2

Local Government Amendment (Legal Status) Bill 2008
Explanatory note
transitional provisions make it clear that the conversion of status does not affect the
continuity of status of a council and does not constitute a new legal entity.

As a result of their conversion of status, local and county councils will not be
constitutional corporations for the purposes of laws of the Commonwealth (including
workplace relations laws).

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 the date of assent
to the proposed Act.

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 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.

Schedule 1 Amendments
Schedule 1 [1] provides that a local council is a body politic of the State with
perpetual succession and the legal capacity and powers of an individual. The
amendment also provides that a council is not a body corporate (including a
corporation). Schedule 1 [5] makes the same amendment for county councils.

Schedule 1 [2] and [6] make consequential amendments to provisions that state the
names of local and county councils.

Schedule 1 [3] makes the amendment referred to in paragraph (b) of the Overview
above.

Schedule 1 [4] provides for the making of regulations with respect to the matters to
be taken into account by the Minister in deciding whether to grant consent to a
council forming or acquiring a controlling interest in a corporation or other entity.

The amendment extends to county councils because of section 400 of the Act.

Schedule 1 [7] inserts a savings and transitional regulation-making power.

Schedule 1 [8] provides the following transitional arrangements for the amendments:

(a) existing local and county councils will have their status converted from that of
a body corporate to that of a body politic of the State but the conversion of
status will not affect the continuity of an existing local or county council and
will not create a new legal entity,

(b) the amendment concerning the maximum period of appointment for temporary
employees will extend to existing appointments.

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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