New provisions for council members to receive superannuation
Changes streamline decision making process for local governments
The changes are part of the implementation of the Local Government Amendment Act 2024.
This reform encourages greater diversity across local governments, as well as assisting to attract and retain council members. Superannuation payments for council members also acknowledges the significant dedication and investment of time a council member commits to their role.
Previously, if a local government wanted to offer superannuation to council members, it had to become an “Eligible Governing Body” (EGB) under Division 446 of the Taxation Administration Act 1953 (Cth). This requires a unanimous council resolution
New sections 5.99B to 5.99E of the Local Government Act 1995 allow local governments to pay superannuation to council members, through a decision-making process which requires an absolute majority decision rather than an unanimous one.
From 19 October 2025 it will be compulsory for all class 1 and 2 local governments to pay superannuation to council members. This will remain optional for class 3 and 4 local governments.
Download the Local Government Reform: Superannuation for council members fact sheet.
Other amendments
Minor amendments have also commenced including a requirement that from 1 February 2025, the nominees of a company on the roll of non-resident owners and occupiers must be an employee or office of that company. The Non-Resident Owners and Occupiers Roll: Local Government Operational Guideline will be updated to reflect these changes.
Further amendments to the Local Government Act 1995 have also commenced, which are:
Section 8(2) — Amends section 2.19 to reflect the deletion of Schedule 9.3, clause 12.
Section 9 — Modernises the drafting of the disqualification due to bankruptcy.
Section 10 — Inserts a revised definition of a serious local government offence, increasing the threshold for a serious local government offence to a fine of $10,000.
Section 32 — Amends section 4.31 to require that body corporate nominees must be officers or employees of their body corporate to be enrolled and to clarify the operation of the enrolment provisions where a property is owned by more than one body corporate or a body corporate and natural person(s).
Section 33 — Amends section 4.32 to clarify that the body corporate must meet the rental requirements in section 4.32 not their nominee.
Section 54 — Amends section 5.63 to provide that deciding to pay superannuation is not a conflict of interest.
Section 62 — Amends section 5.98 to clarify the Local Government Act 1995 does not prevent local governments from making the resolution required by the Taxation Administration Act 1953 (Cth).
Section 63 — Inserts the provisions relating to the payment of superannuation to council members.
Section 145 — Amends Schedule 2.3 of the Act to simplify the process for electing a Deputy Mayor/President.
Section 158 — Ends the transitional enrolments based on the Local Government Act 1960.