NSW Merged Councils Must Get Minister's Permission to Vote on Splitting

Local Government Amendment (De-amalgamations) Bill 2024

4 Jun 2024: Passed by Parliament and signed off by the governor.

This bill kicks in: TBA

Legislative Assembly

Legislative Council

Assent

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Introduced by: The Hon Ron Hoenig MP (ALP); The Hon Tara Moriarty MLC (ALP)

Links to official parliament websites

Official page: progress through parliament

Official page: bill text and explanatory notes

Effects of this bill

If this bill passes, it means that:

Amalgamated councils can lodge a business case and ask the Minister for Local Government to approve a referendum on de-amalgamation.
The Minister for Local Government must send these business cases to the Boundaries Commission for a report.
The Local Government Minister must consult with the Electoral Commissioner before approving a referendum.
Amalgamated councils are banned from holding a referendum on de-amalgamation unless the Local Government Minister approves it.
If the Local Government Minister approves a referendum, they can ban the council and certain other people from selling council assets or changing local environmental plans.
People on the residential roll must vote in a de-amalgamation referendum unless they are exempt or have a valid reason not to vote.
The Minister for Local Government can recommend that the Governor split a council if a majority of voters support the proposal in a referendum.
De-amalgamations under this process no longer require a public inquiry before a local government area is dissolved.

The Debate

What different members said when this bill was debated:

Natasha Maclaren-Jones LIB

“On behalf of the Opposition and the shadow Minister for Local Government, I support the Local Government Amendment (De-amalgamations) Bill 2024. The bill seeks to amend the Act to facilitate the de-amalgamation of merged local government areas.”

Official source →

Amanda Cohn GRN

“I contribute to debate on the Local Government Amendment (De‑amalgamations) Bill 2024. The Greens will be seeking to move amendments to the bill, and we oppose it in its current form. Local government is the closest level of government to the communities it represents. Local government plays a crucial role in shaping the places that we call home.”

Official source →

Cameron Murphy ALP

“I speak in support of the Local Government Amendment (De-amalgamations) Bill 2024. The bill is about giving assurance to New South Wales councils. Before I start, I acknowledge the presence of Councillor Peter Walker, Mayor of Goulburn, in the public gallery. The forced merger of councils was a disappointing chapter in the history of local government.”

Official source →

Stephen Lawrence ALP

“I support the Local Government Amendment (De‑amalgamations) Bill 2024. It has been said in this House and in many other places that the previous Government’s agenda of merging councils against their will and against the will of their communities was an egregious error. Generally, it is true that the councils that were produced in 2016 and 2017 have proven to be less efficient and less effective.”

Official source →

Mark Buttigieg ALP

“Many members have spoken of the opportunity the Local Government (De‑amalgamations) Bill 2024 presents for councils and communities, and I value their contribution. As we have heard, many members in this place have a keen appreciation of the importance of local government, including through personal experience.”

Official source →

News articles and press releases

Local Government Amendment (De-amalgamations) Bill 2024

Mr RON HOENIG, Minister for Local Government — 2024-02-06

Schedule 1 [4] repeals the flawed section 218CC and item [5] sets out a new section 218CD of the Act relating to proposals for de-amalgamation. Section 218CD provides that amalgamated councils must develop and consult with their local communities on a business case for de‑amalgamation, which will need to include information about the financial impacts of the de-amalgamation and how these will be addressed, long-term strategic plans, future sustainability and service delivery capacity. This will ensure the consequences of the de-amalgamation are well known and understood by the community.